Your payslip
Overtime and the higher rate
Overtime is taxed like basic pay. Only the hours that cross into the 40% band pay 40%.
A common worry is that overtime “puts you into a higher tax bracket” and leaves you worse off. It can't. Only the income above the €44,000 band (single, 2026) is taxed at 40%. You always keep some of each extra euro.
| Salary (single, 2026) | Tax on the next €100 | You keep |
|---|---|---|
| €25,000 | €26.29 | €73.71 |
| €40,000 | €27.29 | €72.71 |
| €50,000 | €47.55 | €52.45 |
| €65,000 | €47.16 | €52.84 |
| €80,000 | €52.29 | €47.71 |
| €120,000 | €52.29 | €47.71 |
Work it out
Terms: Overtime · Marginal tax rate
All payslip topics · General information, not tax advice.