See exactly how much extra money hits your bank account after a pay rise
Enter the percentage increase (e.g., 5 for a 5% raise)
See how much of your pay rise you'll actually keep
Your pay rise is taxed at your marginal rate - the highest band your income reaches:
| 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 | Over £125,140 | 45% |
NI is deducted on top of income tax, increasing your effective tax rate on a pay rise:
| Earnings | NI Rate | Combined* |
|---|---|---|
| £12,570 - £50,270 | 8% | 28% |
| £50,271 - £125,140 | 2% | 42% |
| Over £125,140 | 2% | 47% |
*Tax + NI combined rate
Earning between £100,000 and £125,140? Your effective tax rate is 60%!
For every £2 you earn over £100k, you lose £1 of your Personal Allowance - creating a hidden 60% tax rate on pay rises in this band.
Example: A £5,000 pay rise from £100k to £105k could leave you with only £2,000 extra take-home pay.
Learn More
How to Avoid the £100k Tax TrapSmart pension contributions can help you keep more of your pay rise:
Learn More
Student loans add another 9% deduction on income above your threshold:
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £26,065 | 9% |
| Plan 2 | £28,470 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgrad | £21,000 | 6% |
Total deduction example: A higher-rate taxpayer with Plan 2 loan pays 40% tax + 2% NI + 9% student loan = 51% on their pay rise above £50,270.
It depends on your marginal tax rate. Basic rate taxpayers keep around 68% (after 20% tax + 8% NI). Higher rate taxpayers keep around 58% (40% + 2%). Those earning £100k-£125k may only keep 40% due to Personal Allowance reduction.
Only the portion above each threshold is taxed at the higher rate. If your salary goes from £48k to £52k, only the £1,730 above £50,270 is taxed at 40% - the rest stays at 20%. You'll always take home more with a pay rise.
It can be tax-efficient, especially for higher earners. Pension contributions get tax relief at your marginal rate (20%, 40%, or 45%). If you use salary sacrifice, you also save National Insurance. This is particularly valuable for those earning £100k+ to avoid the 60% tax trap.
This depends on your employer's payroll schedule. Most employers process pay rises from the start of the next pay period after it's approved. Your tax code usually adjusts automatically through PAYE.
Always negotiate in gross (before tax) figures. This is the standard in the UK and makes comparisons easier. Use this calculator to understand what the gross figure means for your actual take-home pay.
This calculator provides estimates based on standard UK tax rules for the selected tax year. Individual circumstances may vary. For complex tax situations, please consult a qualified accountant or tax advisor. This tool is for informational purposes only and should not be considered financial advice.