Your gross annual salary before overtime.
Average extra hours you work per week.
Base rate: £15.38/hr → Overtime: £23.08/hr
Salary sacrifice pension reduces your taxable income.
Your Overtime Take-Home (Annual)
£4,320.00
Without Overtime
£25,119.60
take-home
With Overtime
£29,439.60
take-home
Everything you need to know about how overtime is taxed in the UK
No. In the UK, overtime is taxed as regular income. Your overtime earnings are added to your base salary and taxed according to the standard income tax bands and NI thresholds. There is no special overtime tax rate.
Because your base salary has already used your Personal Allowance (£12,570 tax-free) and part of the basic rate band, your overtime is taxed at your marginal rate — the highest rate that applies to your total income. For many workers, this means 20% tax + 8% NI = 28% on overtime, or 40% + 2% = 42% for higher rate taxpayers.
Your marginal tax rate is the rate of tax you pay on the next pound you earn. This is typically higher than your overall effective tax rate because your Personal Allowance has already been used. The marginal rate determines how much of your overtime you actually keep.
Yes. If your employer offers salary sacrifice pension, your overtime (along with your salary) is reduced before tax and NI are calculated. This means you save both income tax and NI on the pension contribution, making it very tax-efficient — especially for higher rate taxpayers.
If your total income (salary + overtime) falls between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 earned above £100,000. This creates an effective marginal rate of around 60%, making overtime in this range particularly expensive.
HMRC-Aligned: Based on HMRC rates for 2025/26. This calculator provides estimates only — refer to GOV.UK for official guidance.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms