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 Crossing a threshold (£50,270 to 40%, or £100,000 where the Personal Allowance is withdrawn) means the top slice of your rise is taxed harder than the rest.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.

2026/27 Tax Year

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)

💡 Key point

🔧A £5,000 rise from £45,000 to £50,000 keeps about £3,600. The same £5,000 from £50,000 to £55,000 keeps only about £2,900 because it's taxed at 40%.

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.