Pay rise calculator 2026/27
Find out how much more you will actually take home after a pay rise, once tax and National Insurance are accounted for. A £5,000 rise does not give you £5,000 more in your pocket.
Extra take-home per month
£300
£5,000 gross rise → £3,600/year after tax (you keep 72%)
How tax bands affect your pay rise
The UK uses a progressive tax system — only the income within each band is taxed at that band's rate. A common misconception is that crossing into the higher rate band (at £50,270) means all your income is taxed at 40%. In reality, only income above £50,270 is taxed at 40%.
However, what you do keep less of is each additional pound in the higher band. For example, on a £5,000 rise from £48,000 to £53,000, the first £2,270 is taxed at 20% + 8% NI (you keep 72p per pound), but the final £2,730 is taxed at 40% + 2% NI (you keep only 58p per pound). Overall, you still take home significantly more.
The £100,000 trap
Earners between £100,000 and £125,140 face an effective 60% marginal tax rate because the personal allowance (£12,570) is withdrawn at £1 for every £2 of income above £100,000. This means that for every extra £1 you earn in this range, you lose 40p in income tax, 20p in lost allowance (taxed at 40%), and 2p in NI — a total of 62p.
If a pay rise takes you from £95,000 to £105,000, the first £5,000 is taxed normally at 42% (combined), but the next £5,000 is effectively taxed at 62%. The most tax-efficient response is often to contribute the excess above £100,000 into a pension — this reduces your adjusted net income and restores the personal allowance.
Negotiating with net pay in mind
When evaluating a pay rise or comparing job offers, always think in terms of monthly take-home difference — not the headline gross figure. A £10,000 rise for a basic rate taxpayer yields roughly £580/month extra take-home. The same £10,000 for someone already in the higher rate band yields only £483/month. And in the taper zone, it could be as low as £317/month.
This calculator helps you quantify exactly what a rise means for your monthly budget, so you can make informed decisions about salary negotiations, job changes, or overtime.