At what point does overtime get taxed at 40% in Wales?

Once your annual income (salary + overtime) exceeds £50,270, additional earnings are taxed at the Higher Rate of 40% in Wales — the same threshold as England. This is higher than Scotland's threshold of £43,663.

Does overtime affect National Insurance in Wales?

NI thresholds are the same across the UK. Overtime is subject to 8% NI on earnings up to £50,270 and 2% above — identical in Wales, England, Scotland, and Northern Ireland. NI is not affected by regional income tax rates.

Wales Overtime After Tax 2025-26

Q: Is overtime taxed at a higher rate in Wales?

Overtime is not taxed at a special rate in Wales — it is added to your regular pay and taxed at your marginal rate. Wales uses the same income tax rates as England: 20% Basic Rate up to £50,270, 40% Higher Rate between £50,271 and £125,140, and 45% Additional Rate above £125,140.

Based on time-and-a-half (1.5×) and a 37.5-hour week, using the same income tax rates as England. Wales Higher Rate (40%) starts at £50,270.

Wales overtime tax basics

Overtime rate used

1.5× (time and a half)

Standard hours/week

37.5 hrs (1,950/year)

Higher Rate threshold

40% above £50,270

Tax year

2025-26

£25,000 salary — overtime hours in Wales

1 hrs overtime +£13/yr 2 hrs overtime +£27/yr 5 hrs overtime +£69/yr 10 hrs overtime +£138/yr 15 hrs overtime +£207/yr 20 hrs overtime +£277/yr 30 hrs overtime +£415/yr 50 hrs overtime +£693/yr 75 hrs overtime +£1,038/yr 100 hrs overtime +£1,384/yr

£30,000 salary — overtime hours in Wales

1 hrs overtime +£16/yr 2 hrs overtime +£33/yr 5 hrs overtime +£82/yr 10 hrs overtime +£166/yr 15 hrs overtime +£249/yr 20 hrs overtime +£333/yr 30 hrs overtime +£498/yr 50 hrs overtime +£830/yr 75 hrs overtime +£1,246/yr 100 hrs overtime +£1,661/yr

£35,000 salary — overtime hours in Wales

1 hrs overtime +£19/yr 2 hrs overtime +£38/yr 5 hrs overtime +£97/yr 10 hrs overtime +£193/yr 15 hrs overtime +£290/yr 20 hrs overtime +£387/yr 30 hrs overtime +£581/yr 50 hrs overtime +£969/yr 75 hrs overtime +£1,453/yr 100 hrs overtime +£1,938/yr

£40,000 salary — overtime hours in Wales

1 hrs overtime +£22/yr 2 hrs overtime +£45/yr 5 hrs overtime +£110/yr 10 hrs overtime +£221/yr 15 hrs overtime +£333/yr 20 hrs overtime +£442/yr 30 hrs overtime +£664/yr 50 hrs overtime +£1,107/yr 75 hrs overtime +£1,661/yr 100 hrs overtime +£2,215/yr

£45,000 salary — overtime hours in Wales

1 hrs overtime +£25/yr 2 hrs overtime +£49/yr 5 hrs overtime +£124/yr 10 hrs overtime +£249/yr 15 hrs overtime +£373/yr 20 hrs overtime +£498/yr 30 hrs overtime +£747/yr 50 hrs overtime +£1,246/yr 75 hrs overtime +£1,869/yr 100 hrs overtime +£2,493/yr

£50,000 salary — overtime hours in Wales

1 hrs overtime +£27/yr 2 hrs overtime +£55/yr 5 hrs overtime +£138/yr 10 hrs overtime +£261/yr 15 hrs overtime +£372/yr 20 hrs overtime +£483/yr 30 hrs overtime +£706/yr 50 hrs overtime +£1,153/yr 75 hrs overtime +£1,711/yr 100 hrs overtime +£2,268/yr

How is overtime taxed in Wales?

Overtime pay in Wales is taxed as ordinary income under PAYE — there is no special overtime tax rate. Your overtime earnings are added to your regular salary and taxed at your marginal rate. Wales uses the same income tax rates as England: Basic Rate (20%) up to £50,270, Higher Rate (40%) between £50,271 and £125,140, and Additional Rate (45%) above £125,140.

This is different from Scotland, where the Intermediate Rate (21%) applies between £27,492 and £43,662, and the Higher Rate (42%) starts at £43,663. Welsh earners have a higher Higher Rate threshold, which means overtime is less heavily taxed for salaries between £43,663 and £50,270.

National Insurance is set UK-wide and is identical in Wales and England. Only income tax differs between Scotland and the rest of the UK.