Updated for 2026/27 tax year

UK Pay Rise Calculator
See the Real Value

A pay rise looks great on paper but tax takes a bite. See your actual monthly gain after income tax and National Insurance — plus any tax band crossing warnings.

Before and after comparison
Tax band crossing warning
% or amount input
Tax year 2026/27

New salary input as

How much of a pay rise do you actually keep?

A pay rise sounds better than it is once tax and National Insurance take their share. This calculator shows you exactly what difference a raise makes to your monthly take home pay, so you can evaluate any offer with clear information.

As a basic rate taxpayer, you keep around 72p in every additional pound earned. As a higher rate taxpayer you keep around 58p. If your raise crosses you from basic to higher rate, part will be taxed at each rate — the calculator handles this correctly and shows you the exact split.

Pay rise and the £100,000 taper

If a pay rise takes your income above £100,000, your personal allowance begins to reduce — by £1 for every £2 above that threshold. This creates an effective 60% marginal rate on income between £100,000 and £125,140. Salary sacrifice pension contributions are the most common way to bring income back below £100,000 and avoid this. See our pension calculator for the numbers.

Frequently asked questions

A basic rate taxpayer (earning up to £50,270) keeps around 72% of a pay rise — paying 20% income tax and 8% NI on the extra. A higher rate taxpayer keeps around 58% — paying 40% tax and 2% NI. Enter your numbers above to get the exact figure.

Only the portion above the band threshold is taxed at the higher rate. If your salary goes from £48,000 to £55,000, only the portion above £50,270 is taxed at 40%. The rest remains taxed at 20%. The calculator shows the exact breakdown.

Yes. A 3% pay rise when inflation is running at 5% means your real purchasing power has fallen by around 2%. Use our inflation calculator to see whether your pay has kept pace with the cost of living.

Always negotiate gross salary — that is what employers use, what shows on contracts, and what affects pension contributions and other benefits. Use our net to gross calculator if you know the take home amount you want to achieve and need to work out the gross figure to request.