Overtime pay calculator
5 overtime hours a week at 1.5× adds £6,000.00 to your gross pay and £4,320.00 to your take-home — you keep 72% of it after tax and National Insurance.
2026/27 rates. Assumes a standard tax code, no pension and no student loan — add those in the full calculator.
Take-home pay including overtime
£29,439.60
Base rate £15.38/hr · overtime £23.08/hr
With vs without overtime
Base pay only
£25,119.60
£30,000.00 gross
With overtime
£29,439.60
£36,000.00 gross
What the overtime is worth
- Extra gross pay
- £6,000.00
- Extra income tax
- £1,200.00
- Extra National Insurance
- £480.00
- Extra in your pocket
- £4,320.00
Your marginal rate on this pay is 28% — that is what the next pound of overtime is taxed at, income tax and National Insurance combined.
How overtime is taxed
There is no special tax on overtime. The extra hours are added to your earnings for the pay period and taxed like any other pay. What makes overtime feel heavily taxed is that it sits on top of your salary, so it is charged at your marginal rate — the highest band your total pay reaches.
If a single big month of overtime pushes your pay unusually high, PAYE can briefly over-deduct. Because PAYE is worked out cumulatively across the year, that corrects itself in later pay periods without a claim.
Overtime questions
Sources & last updated
- GOV.UK — Overtime pay
- HMRC — Rates and thresholds for employers 2026 to 2027
- GOV.UK — National Minimum Wage rates
Rates checked against the sources above and last reviewed for the 2026/27 tax year. This is a guidance tool, not tax or legal advice — for anything that turns on your own circumstances, speak to a qualified adviser. See how we calculate for the full method.