UK Pay Rise Calculator
A pay rise looks great on paper, but only part of it reaches your bank account. Enter your old and new salary to see the take-home difference and your marginal tax rate.
Results update instantly and use the tax year you select.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: a £40,000 to £45,000 pay rise
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Gross pay increase | Take-home increase | New take-home pay | Marginal tax & NI rate | New monthly take-home | Increase per month |
|---|---|---|---|---|---|---|
| £30,000 to £40,000 20% + 8% marginal rate | £10,000.00 | £7,200.00 | £32,319.60 | 28% | £2,693.30 | £600.00 |
| £40,000 to £45,000 Matches the worked example | £5,000.00 | £3,600.00 | £35,919.60 | 28% | £2,993.30 | £300.00 |
| £50,000 to £55,000 New salary enters the 40% band | £5,000.00 | £2,937.80 | £42,457.40 | 41% | £3,538.12 | £244.82 |
| £95,000 to £100,000 Personal Allowance taper | £5,000.00 | £2,900.00 | £68,557.40 | 42% | £5,713.12 | £241.67 |
Important assumptions
- Assumes pension and student loan settings stay the same after the rise.
- Uses marginal tax and NI based on the new salary.
- England, Wales and Northern Ireland rates. Scottish rates differ.
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
Why does my take-home rise by less than my pay rise?
The extra money is taxed at your marginal rate — the rate you pay on each additional pound. Tax and NI on the rise can take 28% to 42% or more.
What is my marginal tax rate?
It is the rate applied to the next pound you earn. For most people it is 20% (plus 8% NI). If your salary is above £50,270 it is 40% (plus 2% NI), and the personal allowance taper pushes some earners to an effective 60%.
Should I compare gross or take-home pay when negotiating?
Always negotiate on gross salary, but know your take-home figure so you understand the real increase. This calculator shows both.
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View calculatorRelated guides
New to the topic? Read a plain-English guide on salary & tax, with worked examples and tips.
How UK Income Tax works
The tax-free allowance, rate bands and how PAYE takes tax from your pay.
Read the guide TaxPAYE explained
How pay as you earn collects Income Tax and NI from your salary.
Read the guide TaxUnderstanding tax bands
Basic, higher and additional rate explained with worked examples.
Read the guide TaxHow to read a payslip
Every line on your pay slip decoded — payments, deductions, year-to-date, and why a bonus month looks different.
Read the guide TaxUK tax rates and allowances 2026/27
Every UK tax rate and allowance for the 2026/27 tax year in one place — income tax, National Insurance, VAT, dividends, corporation tax, student loans and more.
Read the guide TaxHigh Income Child Benefit Charge explained
How the High Income Child Benefit Charge works — the £60,000 threshold, the 1% clawback and what you repay.
Read the guide TaxPension tax relief explained
How pension tax relief works — 20% added at source, extra relief for higher and additional-rate taxpayers, and the annual allowance.
Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.