Overtime tax calculator 2026/27
Overtime is taxed as normal earnings at your marginal rate — there is no special overtime tax. Enter your salary and overtime pay to see how much of the extra you keep after Income Tax and National Insurance.
Calculate tax on your overtime →How overtime is taxed
Overtime pay is added to your normal pay and taxed through PAYE at your marginal rate. In the basic-rate band you keep about 72p of each extra pound; in the higher-rate band about 58p. A month of heavy overtime can be temporarily over-taxed by PAYE and corrected in later payslips.
Employers commonly pay overtime at time-and-a-half or double time, but there is no legal requirement for an enhanced rate — only that average pay meets the minimum wage.
Frequently asked questions
Is overtime taxed more than normal pay?
No — there is no special overtime tax rate. Overtime is taxed at your marginal rate like any other earnings. It can feel heavily taxed because the extra income sits at the top of your pay, in your highest band.
How much of my overtime do I keep?
Roughly 72% in the basic-rate band (after 20% tax and 8% NI) and about 58% in the higher-rate band (40% tax and 2% NI). The calculator shows your exact effective rate.
Do employers have to pay extra for overtime?
No. Time-and-a-half and double time are common but not legally required — your average pay must simply stay at or above the minimum wage for hours worked.