Overtime pay calculator
Time and a half is a gross number. Once your marginal rate is applied, an overtime hour can be worth less than a basic hour was before the tax year started going well for you.
That is £26,560 a year after income tax, National Insurance and anything else coming off your pay.
- Income tax
- £3,886
- National Insurance
- £1,554
- Effective rate
- 17.0%
- Marginal rate
- 28.0%
| Year | Month | Week | Hour | |
|---|---|---|---|---|
| Gross pay | £32,000.00 | £2,666.67 | £615.38 | £16.41 |
| Income tax | £-3,886.00 | £-323.83 | £-74.73 | £-1.99 |
| National Insurance | £-1,553.92 | £-129.49 | £-29.88 | £-0.80 |
| Take-home pay | £26,560.08 | £2,213.34 | £510.77 | £13.62 |
What an overtime hour is really worth
| Salary | Basic hourly | Overtime gross | Marginal rate | Overtime net |
|---|---|---|---|---|
| £24,000 | £12.31 | £18.46 | 28.0% | £13.29 |
| £30,000 | £15.38 | £23.08 | 28.0% | £16.62 |
| £38,000 | £19.49 | £29.23 | 28.0% | £21.05 |
| £46,000 | £23.59 | £35.38 | 28.0% | £25.48 |
| £52,000 | £26.67 | £40.00 | 42.0% | £23.20 |
| £62,000 | £31.79 | £47.69 | 42.0% | £27.66 |
| £105,000 | £53.85 | £80.77 | 62.0% | £30.69 |
At £46,000 an overtime hour at time and a half nets you more than a basic hour. At £52,000 it nets you barely more, because the extra pay is in the 40% band while your basic pay was mostly in the 20% band. Add a Plan 2 student loan and the overtime hour at £52,000 is worth less in your pocket than the basic hour at £46,000.
Overtime and the pay period trap
National Insurance and student loan are both worked out on each pay period in isolation. A month with heavy overtime pushes that month's pay through the 8% band faster and produces a larger student loan deduction than the same total spread evenly. The income tax evens out across the year; the student loan never does.
If your overtime is concentrated in a few months rather than spread, you will pay slightly more over the year than someone earning the same total steadily. It is not a mistake and there is nothing to reclaim.
Questions people actually ask
Is overtime taxed more than normal pay?
No, it is taxed at your marginal rate like everything else. It feels worse because it sits on top of your salary, so it is the part most likely to be in a higher band.
Why did my overtime month lose so much to student loan?
Student loan is worked out per pay period on that period's earnings, so a big month produces a big deduction. Unlike income tax, it is never reconciled across the year.
Related
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.