Is Overtime Worth It Calculator

This calculator works out what your overtime is really worth in New Zealand once tax is taken into account, because extra hours are taxed at your marginal rate rather than some special overtime rate. Overtime pay stacks on top of your normal income, so it is taxed at your highest tax band, which means the take-home value per hour is often lower than the headline rate you are being paid. You enter your normal annual income, your overtime hourly rate, and the number of overtime hours you are considering, and the calculator applies the current New Zealand income tax brackets to work out the tax on the overtime specifically. It returns the net pay from the overtime after tax, the gross overtime pay before deductions, the net amount you actually keep per hour, and your marginal tax rate, so you can compare the real per-hour return against your time and energy. Use it before agreeing to extra shifts, weighing overtime against other paid work, or deciding whether a pay rise into a higher bracket is worth it. The calculation excludes the ACC earner's levy, KiwiSaver contributions and student loan repayments, which would reduce the net figure further if they apply to you. It is an indicative estimate based on standard tax brackets, not personalised tax advice, so check your payslip or a tax adviser for your exact position.

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Based on the 2025/2026 income tax brackets. Overtime is taxed at your marginal rate because it stacks on your income. This excludes the ACC levy, KiwiSaver and student loan, which would reduce the net further. Estimate only, not tax advice.