Overtime Tax Calculator
Calculate your true take-home pay from extra hours. Instantly estimate income tax and National Insurance deductions to see exactly what your overtime is worth.
Calculate Your Overtime Take-Home
Enter your regular hourly rate, overtime multiplier, and expected extra hours. The calculator will estimate your gross earnings and deduct standard UK tax and National Insurance.
Overtime Earnings Solver
Project your weekly, monthly, and annual net overtime pay
Overtime Pay Quick Facts
Essential insights into UK overtime taxation
Understanding Overtime Deductions
Calculating your net overtime pay involves determining your gross extra earnings and then applying the standard statutory deductions. Here is how the math works.
Calculate the Overtime Rate
Multiply your regular hourly rate by your contract’s overtime multiplier (e.g., £15.00 × 1.5 = £22.50 per overtime hour).
Determine Gross Overtime Earnings
Multiply your new overtime rate by the number of extra hours worked to find your weekly gross overtime. Multiply this by 52 for your annual gross overtime.
Apply Income Tax
Apply your marginal income tax rate (typically 20% for basic rate taxpayers) to the gross overtime amount. This is the portion that goes to HMRC.
Deduct National Insurance
Apply the current Class 1 NI rate (currently 8% for the main band) to the gross overtime amount. The remainder is your true net take-home overtime pay.
UK Tax Bands & Multipliers
Standard UK income tax bands for the 2024/2025 tax year and common contractual overtime multipliers.
| Category | Threshold / Rate | Impact on Overtime |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% Tax (If total income is below this) |
| Basic Rate | £12,571 – £50,270 | 20% Tax + 8% NI |
| Higher Rate | £50,271 – £125,140 | 40% Tax + 2% NI |
| Additional Rate | Over £125,140 | 45% Tax + 2% NI |
| Time and a Half | 1.5x Multiplier | Most common standard overtime rate |
| Double Time | 2.0x Multiplier | Often used for Sundays or Bank Holidays |
Overtime Tax FAQ
Answers to the most frequently asked questions about how extra hours are taxed in the UK.
No, overtime is not taxed at a special or higher rate. It is added to your total annual income and taxed at your marginal tax rate (e.g., 20% for basic rate taxpayers). However, if the extra income pushes you into a higher tax bracket, the portion above the threshold will be taxed at 40%.
Yes. Overtime earnings are treated as regular earnings by HMRC, meaning you will pay Class 1 National Insurance contributions on your overtime pay at the standard rates (currently 8% for the main band).
The most common overtime multiplier is ‘time and a half’ (1.5x your regular hourly rate). For work on Sundays or bank holidays, some employers offer ‘double time’ (2.0x), though this is not a legal requirement under UK law.
Regular, predictable overtime might be factored into your tax code by HMRC to spread the tax liability evenly. However, irregular overtime is usually taxed in the pay period it is earned, which can sometimes result in a temporary overpayment that is reconciled at the end of the tax year.