Is overtime taxed more than normal pay?

No. Overtime is ordinary pay, so it's taxed at your top rates: 20% or 40% income tax, your top USC rate and PRSI. It only feels higher because it all lands at the top.

How much of an overtime hour do I keep?

Above the 20% band (€44,000 for a single person in 2026), about 52.8% of each overtime euro: 40% income tax, 3% USC and 4.2% PRSI come off. Below the band, about 72.8% when your top USC rate is 3%.

Does Budget 2027 change this?

Yes. The 20% band rises to €46,500 for a single person, so €2,500 more of your pay is taxed at 20% in 2027. The 2% USC band rises to €30,300.

Pay

Overtime tax calculator

How much of each overtime hour you actually keep after income tax, USC and PRSI.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Is overtime taxed more than normal pay?: No. Overtime is ordinary pay, so it's taxed at your top rates: 20% or 40% income tax, your top USC rate and PRSI. It only feels higher because it all lands at the top.
How much of an overtime hour do I keep?: Above the 20% band (€44,000 for a single person in 2026), about 52.8% of each overtime euro: 40% income tax, 3% USC and 4.2% PRSI come off. Below the band, about 72.8% when your top USC rate is 3%.
Does Budget 2027 change this?: Yes. The 20% band rises to €46,500 for a single person, so €2,500 more of your pay is taxed at 20% in 2027. The 2% USC band rises to €30,300.

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