How Much More Will I Take Home After a Pay Rise?
Enter your current salary and your new salary (or a percentage increase) and this calculator will show exactly how much extra take-home pay you will receive each month and year. All figures use HMRC 2026/27 Income Tax and National Insurance rates, so you can trust the numbers are up to date.
Your Salaries
Monthly increase in take-home
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Old Take-Home (Monthly)
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New Take-Home (Monthly)
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New Gross Salary
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Annual Take-Home Increase
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Extra Tax Paid
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Extra NI Paid
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How the pay rise calculator works
This calculator applies HMRC's 2026/27 Income Tax and National Insurance rates to both your current and new salary, then computes the difference in take-home pay. Enter your current annual salary and either your new salary or the percentage increase your employer has offered, and the result card updates instantly.
Because UK Income Tax is calculated on a marginal-rate basis, not all of your pay rise is taxed at the same rate. If part of your rise crosses the basic-to-higher-rate boundary at £50,270, only that portion is taxed at 40%. The calculator handles this automatically, so the result you see is accurate regardless of where your salary sits.
National Insurance is also deducted before the calculator reaches your take-home figure. Employee NI runs at 8% between £12,570 and £50,270, and falls to 2% above £50,270. This is why crossing the higher rate threshold does not feel quite as painful as people expect — the NI rate drops at the same point your tax rate rises.
The calculator does not currently include student loan deductions, pension contributions or salary sacrifice. If you sacrifice part of your new salary into a pension, use our Salary Sacrifice Calculator alongside this tool for a full picture.
What you need to know about pay rises and tax in 2026/27
The 2026/27 Income Tax thresholds remain frozen at their 2021 levels, a decision that has effectively increased the tax burden for millions of workers as wages have risen with inflation. The personal allowance is £12,570, meaning the first £12,570 of earnings is tax-free. Earnings from £12,571 to £50,270 are taxed at 20%, from £50,271 to £125,140 at 40%, and above £125,140 at 45%.
National Insurance thresholds mirror the Income Tax personal allowance. You pay 8% NI on earnings between £12,570 and £50,270, then 2% on any earnings above £50,270. Because both tax and NI apply to the same band, crossing the higher rate threshold actually becomes slightly less costly for NI — you lose 2p of NI savings per pound but gain a 20p-per-pound tax increase.
One important edge case: if your salary is approaching or crossing £100,000, your personal allowance begins to taper. For every £2 you earn above £100,000, £1 of your personal allowance is removed. This creates an effective marginal rate of 60% between £100,000 and £125,140. A pay rise in this range is particularly expensive — only 40p in every extra pound reaches your pocket. Salary sacrifice is the most effective way to bring taxable income back below £100,000 in this situation.
2026/27 Income Tax bands at a glance
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
2026/27 National Insurance rates at a glance
| Band | Income | Rate |
|---|---|---|
| Below primary threshold | Up to £12,570 | 0% |
| Main rate | £12,571 – £50,270 | 8% |
| Above upper earnings limit | Above £50,270 | 2% |
Frequently Asked Questions
How much more will I take home after a pay rise?
It depends on your current salary and the size of the rise. A basic rate taxpayer keeps around 72p of every extra pound earned (paying 20% tax and 8% NI). A higher rate taxpayer keeps around 52p per pound above £50,270 (paying 40% tax and 2% NI). Use this calculator to see your exact monthly and annual increase in take-home pay.
Does a pay rise push me into a higher tax band?
Only the portion of your salary above the threshold is taxed at the higher rate. In 2026/27, the higher rate band starts at £50,270. If your pay rise takes you from £48,000 to £54,000, only £3,730 of the rise is taxed at 40% — the rest is still taxed at 20%.
How much of my pay rise will I keep after tax?
If you remain a basic rate taxpayer (below £50,270), you keep around 72p of every extra pound. If your rise crosses the higher rate threshold, you keep around 52p of every pound above £50,270. Our calculator shows your exact figures for 2026/27, accounting for the precise amount each rate applies to.
What is the 40% tax threshold in 2026/27?
The higher rate Income Tax threshold is £50,270. Income between £12,571 and £50,270 is taxed at 20%. Income above £50,270 is taxed at 40%. Income above £125,140 is taxed at 45%. These thresholds have been frozen since 2021 and remain frozen until at least 2028, meaning more people are pulled into higher bands as wages rise.
Will a pay rise affect my student loan repayments?
Yes. Student loan repayments are a percentage of your income above the repayment threshold. For Plan 2, you repay 9% of earnings above £27,295. For Plan 1, the threshold is £24,990. If your pay rise increases earnings above these thresholds, your monthly student loan deduction will increase.
How does salary sacrifice affect my pay rise?
If you sacrifice a portion of your new salary into a pension or other benefit, your taxable income is reduced, meaning you pay less Income Tax and NI on the sacrificed amount. This can make your effective take-home increase greater than it initially appears. Use our Salary Sacrifice Calculator alongside this tool for a full picture.
Related Calculators
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Salary Sacrifice Calculator
See how much tax and NI you save by sacrificing salary into your pension.