Pay Rise Calculator (UK)
See exactly how a salary increase changes your take-home pay for 2026/27 — including the marginal rate on the extra money and whether you cross a tax threshold. Compare your old and new salary in our calculator.
What a Pay Rise Actually Keeps
The extra £1 is taxed at your marginal rate, not your average rate.
| Where your rise lands | You keep (approx) |
|---|---|
| Basic band (under £50,270) | 72p of each £1 (20% tax + 8% NI) |
| Higher band (£50,270–£100k) | 58p of each £1 (40% tax + 2% NI) |
| £100k–£125,140 trap | 40p of each £1 (60% effective) |
Make the Most of a Pay Rise
- Check thresholds: a rise near £50,270 or £100,000 changes your marginal rate sharply.
- Pension salary sacrifice: turn a 40%/60% taxed slice into tax-relieved savings.
- Student loan: higher pay means higher Plan 2/5 repayments.
- Child Benefit: crossing £60,000 starts the HICBC.
Frequently asked questions
How much extra take-home will a pay rise give me?
It depends on your marginal rate. A rise that keeps you in the 20% basic band keeps about 72p of every extra £1 (after 20% tax and 8% NI). Crossing £50,270 into the 40% band drops that to about 58p, and above £100,000 the 60% trap can leave only 40p.
Why does a pay rise sometimes feel like less?
Because tax and NI are marginal. Crossing a threshold (£50,270 to 40%, or £100,000 where the Personal Allowance is withdrawn) means the top slice of your rise is taxed harder than the rest.
Should I salary-sacrifice a pay rise into pension?
Often yes — especially above £50,270, where pension contributions save 40% + 2% NI, and above £100,000 where they can restore the Personal Allowance. Use the calculator to compare.