Overtime Calculator UK — Take-Home Pay After Tax
This overtime calculator shows you how much you actually take home per hour after tax and National Insurance on your overtime earnings. Many workers are surprised to find that overtime pays less per hour than expected, because it is taxed at your marginal rate rather than your average rate. Enter your normal hourly rate, the overtime multiplier, hours worked and your base salary to see your net weekly overtime pay, effective hourly rate after deductions and total tax on your extra hours. The calculator supports time and a half, double time and standard rate overtime, and uses 2025/26 HMRC income tax bands and NI thresholds to give you an accurate picture of what each extra hour is really worth.
Understanding How Overtime Is Taxed in the UK
Overtime is not taxed at a special rate in the UK. It is simply added to your regular earnings and taxed at your marginal income tax rate and National Insurance rate. This means if your base salary already uses up your personal allowance and basic rate band, every pound of overtime could be taxed at 40% income tax plus 2% NI, leaving you with just 58p per pound earned. Even at basic rate, you lose 20% tax and 8% NI, keeping only 72p. This is why the gross overtime rate on your payslip can look generous while the net amount in your bank feels disappointing. Understanding your marginal rate is key to deciding whether overtime is worth the extra hours.
Your Rights Around Overtime in the UK
There is no legal requirement for employers to pay overtime at an enhanced rate in the UK. Time and a half and double time are contractual agreements, not statutory rights. However, the Working Time Regulations limit your average working week to 48 hours over a 17-week period, unless you have signed a voluntary opt-out. Your employer cannot force you to work overtime unless it is specified in your contract, and your total hours must comply with the regulations. Full details on your working hours rights are available on the GOV.UK maximum weekly working hours page.
Making the Most of Your Overtime Earnings
If overtime pushes your total income close to a tax band threshold, consider whether directing extra earnings into your pension via salary sacrifice could save you money. Pension contributions reduce your taxable income, meaning you keep more of each overtime hour. Use our pension tax relief calculator to model the savings. You can also check your overall position with our take home pay calculator to see how your base salary plus overtime affects your total annual deductions. If you are on a student loan, be aware that overtime earnings above the repayment threshold will trigger additional deductions at 9%.
You are paid 1.5 times your normal hourly rate. There is no legal requirement for this in the UK.
Only if it is in your contract. Total hours must not exceed 48/week average without a voluntary opt-out.
Depends on your scheme. Some include overtime in pensionable pay, others use basic salary only.
48 hours average over 17 weeks under the Working Time Regulations. You can opt out voluntarily.
Yes. Overtime is subject to Class 1 NI at 8% between £12,570–£50,270, and 2% above.
This calculator provides estimates for guidance only. Results use 2025/26 HMRC rates. This is not financial, legal or professional advice. For regulated financial advice, speak to a qualified financial adviser.