PayBreakdown - Salary Calculator & Budget Manager
Is overtime taxed more?
Overtime is not a separate tax category, but extra pay can be taxed at your marginal rate and may increase NI or student loan deductions.
What this page helps with
Overtime is normally taxed as employment income, not as a special category. It can feel like it is taxed more because it is added on top of your normal pay and may fall into a higher marginal band or trigger extra deductions.
Official sources
Income Tax rates and Personal AllowancesNational Insurance rates and categoriesStudent loan repayment thresholdsPension tax reliefNational Minimum Wage and National Living Wage ratesStatutory Maternity Pay and LeaveStatutory Sick PayFCA guidance on misleading financial promotionsOff-payroll working and IR35 guidanceUnderstanding off-payroll workingSalary sacrifice for employersNHS Employers pay scales 2026/27NHS Health Careers Agenda for Change pay ratesLast updated 2026-05-07. Planning estimates only. Not financial advice.