Overtime pay calculator
Overtime pay is the hourly rate multiplied by the multiplier and the hours, then taxed at the marginal rate since it sits on top of salary: an estimated 20% income tax plus 8% National Insurance in the basic band, per gov.uk's Income Tax rates. This tool estimates the take-home for 2026/27.
How is overtime pay taxed?
The gross is the hourly rate multiplied by the overtime multiplier, multiplied by the hours. Time-and-a-half turns a £15 rate into £22.50 an hour, double-time into £30. That is the pre-tax figure.
The take-home depends on where the overtime falls in the tax bands, because it is extra income taxed at the marginal rate rather than the average rate. A basic-rate earner keeps roughly 72% of each overtime pound after 20% tax and 8% National Insurance, under gov.uk's Income Tax rates and National Insurance rates pages. A higher-rate earner keeps less, once earnings pass £50,270. This tool reads the marginal rate straight off the salary entered, including the 60% band between £100,000 and £125,140.
What would you take home on an example of overtime?
On a £30,000 salary, 10 hours of overtime at a £15 rate and 1.5x pays £22.50 an hour, so £225.00 gross. That salary sits in the basic-rate band, so the marginal rate is about 28.0%. After tax and National Insurance the estimated take-home is roughly £162.00.
Common questions
How is overtime pay calculated?
Multiply your normal hourly rate by the overtime multiplier, then by the hours worked. Time-and-a-half means 1.5 times the rate, double-time means 2 times. A £15 rate at 1.5x for 10 hours is £225 of gross overtime.
Is overtime taxed more than normal pay?
No, there is no special overtime tax. It is taxed at your marginal rate, the rate on your next pound of income. Because it sits on top of your salary, it can feel heavily taxed, but the rate is the same as any other pay in that band.
How much overtime will I take home?
On a £30,000 salary, 10 hours at £15 and 1.5x is £225.00 gross. After tax and National Insurance at your marginal 28.0% you keep about £162.00.
Does overtime affect my tax code?
Not usually. Overtime is taxed through PAYE like the rest of your pay. A large amount in one month can look over-taxed on that payslip because PAYE assumes the month is typical, but it evens out across the year.
How is overtime pay taxed?
The gross overtime is the hourly rate multiplied by the overtime multiplier and the hours worked. Because it sits on top of salary, it is taxed at the marginal rate: an estimated 20% income tax plus 8% National Insurance in the basic band, under gov.uk's Income Tax rates and National Insurance rates pages, rising to 40% above £50,270.
What would you take home on an example of overtime?
On a £30,000 salary, 10 hours at £15 and 1.5x gives £225.00 of gross overtime. At the marginal rate of about 28.0%, the estimated take-home is £162.00, after tax and National Insurance.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.