Overtime Tax Calculator UK
Find out exactly how much of your overtime you keep after tax, National Insurance, and student loan deductions. See the effective tax rate on every extra hour.
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Frequently asked questions
How is overtime taxed in the UK?▾
Overtime is taxed as regular income. It is added to your base salary and taxed at whatever band it falls into. If your base salary already uses your personal allowance and basic rate band, overtime may be taxed at 40% or even 45%.
Why does my overtime seem heavily taxed?▾
Your base salary already uses your tax-free personal allowance (£12,570) and possibly your basic rate band. Overtime sits on top, so it is taxed at your marginal rate — often 20%, 40%, or even 45% plus National Insurance.
Do I pay National Insurance on overtime?▾
Yes. Overtime earnings are subject to Class 1 National Insurance at 8% on earnings between £12,570 and £50,270, and 2% above that. This is in addition to income tax.
Is time-and-a-half overtime taxed differently?▾
No. The rate you are paid for overtime (1x, 1.5x, 2x) does not change how it is taxed. The total amount earned is simply added to your income and taxed at the applicable marginal rate.
Can overtime push me into a higher tax bracket?▾
Yes. If your base salary is near the boundary of a tax band (e.g., close to £50,270), overtime can push your total earnings into the higher rate band, meaning the overtime portion above the threshold is taxed at 40%.
How much of my overtime do I actually keep?▾
It depends on your tax band. A basic rate taxpayer keeps about 68p of every £1 of overtime (after 20% tax and 8% NI, plus student loan if applicable). A higher rate taxpayer keeps about 52p per £1.
Does overtime affect my student loan repayments?▾
Yes. Student loan repayments are based on total earnings. Overtime increases your total pay, which can increase your monthly student loan deduction by 9% (Plan 1, 2, 4, 5) or 6% (Postgraduate) of the additional amount above the threshold.
Is overtime included in pension contributions?▾
It depends on your employer. Some pension schemes are based on basic pay only, while others include overtime. Check your employment contract or ask your HR department.
Can I reduce the tax on my overtime?▾
You can reduce your overall tax by making pension contributions (which come off your taxable income), using salary sacrifice schemes, or claiming allowable expenses. However, you cannot specifically reduce tax on overtime alone.
How do I check if my overtime tax is correct?▾
Use the CalcStack payslip checker to verify your deductions, or compare your payslip with HMRC tax tables. If you believe your tax code is wrong, contact HMRC directly to have it corrected.