In what country is overtime taxed at a higher rate? People say this all the time but the same income tax rules apply to overtime. There is no higher overtime tax in the EU. Yes the average tax rate might be higher on overtime hours on your payslip, but that’s not because of a separate overtime tax, your overtime earnings falls in your highest or even a higher bracket because the earnings are added on top of your base salary. While the average tax rate of your base salary is lower because it covers multiple lower tax brackets and a tax break could have been applied. But if you earned the same money as a normal salary without overtime you’d be paying the same total tax amount. So no there is no higher tax for overtime it’s just how progressive income tax works. There are countries in the EU that give a tax break on overtime.
In what country is overtime taxed at a higher rate? People say this all the time but the same income tax rules apply to overtime. There is no higher overtime tax in the EU. Yes the average tax rate might be higher on overtime hours on your payslip, but that’s not because of a separate overtime tax, your overtime earnings falls in your highest or even a higher bracket because the earnings are added on top of your base salary. While the average tax rate of your base salary is lower because it covers multiple lower tax brackets and a tax break could have been applied. But if you earned the same money as a normal salary without overtime you’d be paying the same total tax amount. So no there is no higher tax for overtime it’s just how progressive income tax works. There are countries in the EU that give a tax break on overtime.