Find out how much extra you will actually take home after your pay rise
Because your pay rise is taxed at your marginal rate — not your average rate. If your current salary is in the basic rate band, your rise is still taxed at 20% income tax plus 8% National Insurance. That means you keep around 72p in every £1 of your rise.
If your rise pushes you from basic rate into higher rate (above £50,270), some of your rise will be taxed at 40% + 2% NI — meaning you only keep around 58p per £1 on that portion.
For higher-rate taxpayers, salary sacrificing your pay rise into your pension can be very tax efficient. You save 40% income tax + 2% NI = 42% on the sacrificed amount. A £3,000 pay rise paid into pension could be worth £5,000+ to your retirement fund after tax relief is applied.
As a basic rate (20%) taxpayer you keep approximately 72% of a pay rise after income tax and NI. As a higher rate (40%) taxpayer you keep approximately 58%. If your rise crosses the £50,270 threshold, you keep different percentages on each portion.
Yes — if your total income exceeds the repayment threshold for your plan, you will repay 9% of any earnings above that threshold. A pay rise above the threshold means higher student loan repayments, reducing your net gain further.
Yes. If your current salary is close to £50,270, a pay rise could push you into the 40% higher rate band for the portion above that threshold. You would pay 40% income tax + 2% NI on the higher-rate portion of your rise.
An employee earning £35,000 receives a £3,000 pay rise to £38,000. How much extra do they actually take home?
| Current salary | £35,000 |
| New salary | £38,000 |
| Pay rise | £3,000 |
| Current take-home | £28,614/yr (£2,385/mo) |
| New take-home | £30,774/yr (£2,565/mo) |
| Extra take-home per year | £2,160 |
| Extra take-home per month | £180 |
| Tax on the rise | £840 (28%) |
| Percentage of rise kept | 72% |
The calculator computes full take-home pay at both salary levels and shows the difference:
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Results are estimates based on 2026/27 HMRC rates and are intended as a guide only. They do not constitute financial or tax advice. Always verify with HMRC or a qualified accountant for your specific circumstances.