How much of a pay rise do you actually keep?
A pay rise is taxed in exactly the same way as the rest of your salary: Income Tax and employee National Insurance are both charged on the extra amount, so only what's left after those deductions reaches your take-home pay. As a rough guide, a basic-rate taxpayer typically keeps around 68p of every extra £1 (after 20% tax and 8% National Insurance), while a higher-rate taxpayer often keeps around 58p (after 40% tax and 2% National Insurance).
It's rarely a single flat percentage though, because a rise can push part of your income into a higher tax band, or, for income over £100,000, reduce your Personal Allowance. This calculator runs your exact salary and rise through the same tax bands HMRC uses, so the figures reflect your own numbers rather than a rough rule of thumb.
Income Tax on a pay rise
For 2026/27, the first £12,570 you earn is tax-free (your Personal Allowance), the next portion up to £50,270 is taxed at 20% in England, Wales and Northern Ireland, 40% up to £125,140, and 45% above that. Scotland uses a separate six-band system. If your rise crosses one of these thresholds, only the part of your income above the threshold is taxed at the higher rate — the calculator flags this when it applies to you.
National Insurance on a pay rise
Employee National Insurance is charged at 8% on annual earnings between £12,570 and £50,270, and 2% above that. A rise that takes you over £50,270 is charged NI at the lower 2% rate on the portion above that threshold, rather than 8%, which slightly softens the tax hit on higher earnings compared to Income Tax alone.
The £100,000 Personal Allowance taper
Once your income passes £100,000, your Personal Allowance is reduced by £1 for every £2 you earn above that threshold, disappearing completely at £125,140. This creates an effective marginal tax rate of around 60% on income in that band, so a pay rise that takes you into this range is often worth considerably less in take-home pay than the same rise elsewhere in the income scale. If this applies to your numbers, the calculator above will warn you.
Pay rises and student loan repayments
Student loan repayments are charged at a fixed percentage (usually 9%) of your income above your plan's repayment threshold. A pay rise that increases the amount of your salary above that threshold increases your monthly repayment, which further reduces how much of the rise reaches your take-home pay. Select your student loan plan above to include this in the calculation.
Salary increase calculator for Scotland
If you live in Scotland, your pay rise is taxed under Scotland's own six-band Income Tax system (19% to 48%) rather than the England/Wales/Northern Ireland bands. Select “Scotland” as your tax region in the calculator above for an accurate result. National Insurance and student loan rules are the same across the whole UK.
Example salary increase calculations
These worked examples come straight from the calculator above, so the figures match exactly what you'd see entering the same numbers yourself.
5% rise on £35,000
£35,000 → £36,750 gross · rUK
- Take-home increase
- £1,260/yr
- Kept after tax & NI
- 72.0%
£3,000 rise on £48,000
£48,000 → £51,000 gross · rUK
- Take-home increase
- £1,788/yr
- Kept after tax & NI
- 59.6%
New role: £42,000 to £55,000
£42,000 → £55,000 gross · rUK
- Take-home increase
- £8,698/yr
- Kept after tax & NI
- 66.9%
Scotland, 8% rise on £60,000
£60,000 → £64,800 gross · Scotland
- Take-home increase
- £2,688/yr
- Kept after tax & NI
- 56.0%
Frequently asked questions
Why doesn't my take-home pay go up by the full amount of my pay rise?
Because the extra salary is taxed in the same way as the rest of your income. Income Tax and employee National Insurance are both charged on the increase, so only what's left after those deductions reaches your take-home pay. This calculator shows exactly how much of your rise is kept, based on your own salary and tax region.
How much of a pay rise do I actually keep?
It depends on which tax band the increase falls into. A basic-rate taxpayer typically keeps around 68p of every extra £1 (after 20% Income Tax and 8% employee National Insurance), while a higher-rate taxpayer often keeps around 58p (after 40% tax and 2% National Insurance). If the rise pushes you over a threshold, such as £50,270 or £100,000, part of it can be taxed at a higher effective rate. Enter your own figures above for an exact answer.
Does a pay rise affect my student loan repayments?
Yes, if your income is above your student loan plan's repayment threshold. Repayments are charged at a fixed percentage (usually 9%) of income above that threshold, so a pay rise that takes more of your salary over the threshold increases your monthly repayment, reducing how much of the rise reaches your take-home pay. This calculator includes that if you select a student loan plan.
What's the difference between a percentage rise and a flat £ amount rise?
A percentage rise scales with your current salary, so the same percentage is worth more in £ terms to someone on a higher salary. A flat £ amount adds the same cash figure regardless of current pay. Employers use both approaches; this calculator lets you enter your rise either way, or enter your new salary directly if you already know it.
Why does a rise near £100,000 have such a big effect on take-home pay?
Because your Personal Allowance starts tapering away once your income passes £100,000, at a rate of £1 of allowance lost for every £2 earned above that threshold, until it disappears completely at £125,140. This creates an effective marginal tax rate of around 60% on income in that band, so a rise that takes you into this range is often worth noticeably less in take-home pay than the same rise elsewhere. The calculator flags this if it applies to you.
Is a pay rise calculated differently in Scotland?
The mechanics are the same, but Scotland uses its own six-band Income Tax system (19% to 48%) instead of the three bands used in England, Wales and Northern Ireland, so the amount of tax charged on a rise, and therefore how much reaches your take-home pay, can differ. Select 'Scotland' as your tax region above for an accurate estimate.
Can I use this calculator to check a pay cut instead of a rise?
Yes. Enter a negative £ amount, or your new (lower) salary directly, and the calculator will show the reduction in your take-home pay the same way it shows an increase, with a note that the figures work out as a decrease rather than a rise.
Methodology and assumptions
This salary increase calculator assumes:
- Your new salary is calculated from your current salary and the increase mode selected (percentage, £ amount, or a direct new salary), with no other income, bonuses, or benefits in kind.
- Both your current and new salary are taxed independently as a full year's income at the new rate, rather than blending an old and new rate mid-year, which matches how most payroll software treats a permanent pay change.
- Income Tax, National Insurance and student loan repayments are calculated on an annualised basis for both figures, using the same rules as the take-home pay calculator.
- All figures are rounded to the nearest penny.
For a full salary-based calculator, see the UK Take-Home Pay Calculator. Full source citations for every rate and threshold used are also listed on the About & methodology page.
Sources
Tax figures for 2026/27 are taken directly from:
- Income Tax rates and Personal Allowances (GOV.UK)
- Income Tax in Scotland (GOV.UK)
- Scottish Income Tax: rates and bands 2026 to 2027 (gov.scot)
- Rates and thresholds for employers 2026 to 2027 (GOV.UK)
- National Insurance rates and categories (GOV.UK)
- Salary sacrifice and the effects on PAYE (GOV.UK)
- Tax on your private pension contributions: Annual Allowance (GOV.UK)
- Tapered annual allowance explained 2026/27 (MoneyHelper)
- Money purchase annual allowance (MPAA) (MoneyHelper)
- National Minimum Wage and National Living Wage rates (GOV.UK)
- Maximum weekly working hours (GOV.UK)
- Personal Allowances: adjusted net income (GOV.UK)
- Child Benefit tax charge (GOV.UK)
- Child Benefit rates (GOV.UK)
- Company car benefit: the appropriate percentage, 480 Appendix 2 (GOV.UK)
Further guidance referenced on this page:
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