"Time and a half" sounds generous — until you see what lands in your account. In Ireland there is no special overtime tax rate: overtime is simply extra income, taxed at your marginal rate (the rate on your top euro). For a higher earner that means the taxman can take more than half of it. Here's exactly how much overtime you keep at each salary in 2026.
Figures come from the IrishPAYE calculator on Budget 2026 rates for a single worker. We use a base 39-hour week and time-and-a-half overtime to show the real hourly value.
How much of your overtime you keep (2026)
| Base salary | Marginal rate | You keep | OT rate (1.5×) gross | OT rate after tax |
|---|---|---|---|---|
| €30,000 | 27.24% | 72.8% | €22.19/hr | €16.14/hr |
| €45,000 | 47.24% | 52.8% | €33.28/hr | €17.56/hr |
| €60,000 | 47.24% | 52.8% | €44.38/hr | €23.41/hr |
| €80,000 | 52.24% | 47.8% | €59.17/hr | €28.26/hr |
Why overtime feels barely worth it
Your payslip taxes overtime at your marginal rate, which for a higher-rate taxpayer is 47.2% (40% income tax + 3% USC + 4.24% PRSI), rising to 52.2% once your income passes €70,044, where USC jumps to 8%. So even at time-and-a-half, a higher earner nets little more per overtime hour than their normal after-tax hourly rate. A standard-rate worker (under €44,000) does much better, keeping about 73% because their marginal rate is only around 27%.
€100 of overtime — what you actually bank
Strip out the hourly maths and it's stark. For every €100 of overtime pay:
- A worker under €44,000 keeps about €73.
- A worker between €44,000 and €70,044 keeps about €53.
- A worker over €70,044 keeps about €48.
It's the same effect as a bonus — see how much of a bonus you keep — because both are taxed at your marginal rate.
Is overtime still worth doing?
That's a personal call, but two points help. First, overtime always increases your take-home — you never lose money by earning more; you just keep less of each extra euro. Second, if you're a higher-rate taxpayer and don't need the cash now, routing overtime into a pension gets income tax relief at your marginal rate, turning a heavily taxed euro into a nearly untaxed one.
Check your own overtime
Add your expected overtime to your salary in the bonus tax calculator (a bonus and overtime are taxed identically), or see the full deduction picture at your income in how much tax you pay at every salary.
Does overtime push you into a higher tax bracket?
This is the most common myth about overtime — and the answer is no, not in the way people fear. Ireland uses a marginal system, so only the portion of your income above the €44,000 cut-off is taxed at 40%; the rest is still taxed at 20%. Overtime can't retroactively tax your whole salary at a higher rate, and it can never leave you with less money than working fewer hours. What actually happens is simpler: if your overtime tips you past €44,000 (or €70,044 for USC), only the euros above each threshold are taxed at the higher rate. So a big overtime month might be taxed a little harder at the very top, but every extra hour still adds to your take-home — just at your marginal rate, not your average one. If that still feels punishing, diverting the extra into a tax-relieved pension is the most efficient answer.
Frequently asked questions
Is there a separate tax rate for overtime in Ireland?
No. Overtime is taxed as ordinary income at your marginal rate — there is no special higher (or lower) overtime rate.
How much is €200 of overtime after tax?
About €146 for a standard-rate taxpayer, around €106 at the 40% rate, and roughly €96 once you're over €70,044.