Is overtime taxed more than normal pay?

No. Overtime is added to your pay for the year and taxed at your marginal rate — the rate on your top slice of income. It can feel higher because it sits on top of your salary, so for a higher-rate worker it is 40% tax plus 2% National Insurance. It is not a separate, higher "overtime tax".

How is time and a half worked out?

Time and a half means 1.5× your normal hourly rate for each overtime hour. Double time is 2×. This calculator multiplies your base rate by the multiplier you choose, then shows the tax and NI on the extra so you see the real net amount.

Why did my payslip tax my overtime so heavily one month?

PAYE can over-tax a one-off spike, because it assumes you will earn that much every month. It evens out over the year (or via a refund). This calculator shows the true annual position, not the worst single month.

Does overtime affect my student loan or pension?

A student loan takes 9% (6% postgraduate) of the overtime above your threshold. A workplace pension may or may not apply to overtime, depending on your scheme’s definition of pensionable pay.

Overtime calculator 2026/27

See what your overtime is really worth after tax. Enter your rate and hours for time and a half, double time or any multiplier — and exactly what reaches your account.

Your normal hourly rate

Normal hours a week Overtime hours a week Overtime rate (× normal)

England, Wales & NI, 2026/27. Overtime is taxed at your marginal rate on top of your normal pay.

£112.50 of overtime a week

2026/27

Overtime a year: £5,850
Income Tax: −£1,170
National Insurance: −£468

You keep

from your overtime, a year

£4,212

That is £351 a month. Your overtime is taxed at a marginal 28% — not a special tax.

Verified · 2026/27
21 June 2026

How this was calculated

We take your base hourly rate, multiply it by your overtime rate (1.5× for time and a half, 2× for double time, or your own figure) and the overtime hours you work, to get the gross overtime for the year. Because overtime is added on top of your normal pay, it is taxed at your marginal rate — your top Income Tax band plus employee National Insurance for 2026/27 — which is what we deduct to show the net amount.

The full method and every source is on our methodology page.

Built & maintained by the Pay Packet team · methodology sourced from HMRC · last reviewed 21 June 2026. About our figures →

What your overtime is really worth

Overtime feels like it disappears, but the maths is simple. Your overtime pay is added to your earnings for the year and taxed at your marginal rate — the rate on your top slice of income. If you are a basic-rate taxpayer, that is 20% Income Tax plus 8% National Insurance, so you keep about 72%. Cross into the higher-rate band at £50,270 and the part above is taxed at 40% plus 2% — you keep about 58% of that slice.

There is no separate "overtime tax". A single busy month can look brutal on the payslip because PAYE briefly assumes you will earn that much every month, but it corrects over the year. For the strategy behind it, see does overtime get taxed more? If you work in the NHS, your overtime usually follows Agenda for Change rules — see the NHS overtime calculator.

Overtime questions

Is overtime taxed more than normal pay?: No. Overtime is added to your pay for the year and taxed at your marginal rate — the rate on your top slice of income. It can feel higher because it sits on top of your salary, so for a higher-rate worker it is 40% tax plus 2% National Insurance. It is not a separate, higher "overtime tax".
How is time and a half worked out?: Time and a half means 1.5× your normal hourly rate for each overtime hour. Double time is 2×. This calculator multiplies your base rate by the multiplier you choose, then shows the tax and NI on the extra so you see the real net amount.
Why did my payslip tax my overtime so heavily one month?: PAYE can over-tax a one-off spike, because it assumes you will earn that much every month. It evens out over the year (or via a refund). This calculator shows the true annual position, not the worst single month.
Does overtime affect my student loan or pension?: A student loan takes 9% (6% postgraduate) of the overtime above your threshold. A workplace pension may or may not apply to overtime, depending on your scheme’s definition of pensionable pay.

Guidance for 2026/27, not personal tax advice. Assumes a standard tax code and that overtime is paid pay (not time off in lieu). Your scheme’s rules on pensionable overtime may differ — check your contract and gov.uk/HMRC.