Compare Two Salaries
Compare two salary offers to see which gives you more take-home pay after tax, National Insurance, and student loan deductions
Last updated: January 2026 · Reflects 2025/26 tax year
Select your student loan plan (applies to both salaries)
Enter Both Salaries
See which one gives you more take-home pay
How This Salary Comparison Works
This calculator helps you compare two salary offers by calculating the actual take-home pay for each, accounting for all deductions:
- Applies UK Income Tax based on current tax bands (20%, 40%, 45%)
- Deducts National Insurance contributions (8% basic rate, 2% above £50,270)
- Calculates student loan repayments if applicable (9% above threshold for most plans)
- Shows side-by-side comparison of net take-home pay
- Displays the exact difference in pounds and percentage
The comparison uses the same student loan plan for both salaries to give you an accurate like-for-like comparison. For the latest tax band information, visit GOV.UK Income Tax Rates.
Why Comparing Salaries Matters
Making Better Decisions
- •A higher gross salary doesn't always mean more take-home pay
- •Tax bands and student loans can significantly affect the difference
- •Small salary increases may push you into higher tax brackets
Real-World Impact
- •Understand the true value of job offers and pay rises
- •Make informed career decisions based on actual earnings
- •Budget accurately based on your real take-home pay
Understanding your effective tax rate at different salary levels is key to making good career decisions. If you're negotiating a raise, our pay rise negotiation guide can help you understand what a salary increase is really worth. For details on National Insurance contributions, visit GOV.UK.
UK Tax Brackets & Your Salary Comparison
Understanding which tax bracket each salary falls into is essential for comparing offers. Here is what you keep from every extra pound earned in each band for 2025/26:
| Salary Band | Tax Rate | NI Rate | You Keep Per £1 |
|---|---|---|---|
| Up to £12,570 | 0% | 0% | £1.00 |
| £12,571 – £50,270 | 20% | 8% | £0.72 |
| £50,271 – £125,140 | 40% | 2% | £0.58 |
| £100,001 – £125,140* | 60%†| 2% | £0.38 |
| Over £125,140 | 45% | 2% | £0.53 |
*£100k–£125,140 has an effective 60% rate due to personal allowance tapering — you lose £1 of personal allowance for every £2 earned above £100,000.
Learn more about the £100k tax trap and how to compare job offers beyond salary.
The Hidden Value of Benefits
Salary is only part of the picture. Benefits can add 10-30% to the total value of a compensation package. Here is what common workplace benefits are typically worth:
| Benefit | Typical Annual Value | How to Compare |
|---|---|---|
| Employer pension (5% match) | £2,000–£3,000 | Check % match above minimum 3% |
| Private healthcare | £500–£2,000 | Compare excess and coverage |
| Annual bonus | 5–20% of salary | Factor in likelihood of payout |
| Extra holidays (5 days) | £800–£1,500 | Calculate at your daily rate |
| Company car/allowance | £3,000–£6,000 | Consider BIK tax implications |
Read our guide on how to compare job offers for a step-by-step approach, or learn how salary sacrifice can maximise the tax efficiency of your benefits.
Salary Comparison FAQs
Why might a higher salary result in less take-home pay?
If a salary increase pushes you into a higher tax bracket, you'll pay more tax and National Insurance on the additional income. Combined with student loan repayments, the net increase may be smaller than expected. Read about the £100k tax trap if your salaries are near that threshold.
Should I always choose the higher gross salary?
Not necessarily. Consider other factors like pension contributions, benefits, commute costs, work-life balance, and career progression opportunities. A slightly lower salary with better benefits — especially salary sacrifice arrangements — might be worth more overall.
Does this include pension contributions?
No, this comparison focuses on tax, National Insurance, and student loan deductions. Pension contributions vary by employer and employee choices, so it's best to compare those separately.
How accurate is this comparison?
This calculator uses standard 2025/26 UK tax rates and provides accurate estimates for most employees. Actual deductions may vary based on your specific tax code, pension scheme, and other personal circumstances.
What if I have different student loan plans for each salary?
This calculator uses one student loan plan for both salaries to provide a fair comparison. Your student loan plan follows you between jobs, so this gives an accurate like-for-like comparison.
Disclaimer
This salary comparison tool provides estimates for informational purposes only. Calculations are based on standard UK tax rates and assumptions for the 2025/26 tax year. Actual take-home pay may vary depending on your specific tax code, pension contributions, benefits-in-kind, and other personal circumstances. This tool should not be used as a substitute for professional financial advice. Always verify salary details with your employer and consult HMRC or a qualified tax advisor for personalized guidance.