Pay Rise Calculator UK 2026/27
Find out how much extra you will actually take home after your pay rise
Why do I keep less than my 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.
Should I put my pay rise into pension?
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.
Frequently asked questions
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.
Worked example
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% |
How the calculation works
The calculator computes full take-home pay at both salary levels and shows the difference:
- Current take-home: Calculate net pay on current salary using 2026/27 rates
- New take-home: Calculate net pay on new salary using 2026/27 rates
- Extra take-home: Difference between the two — this is what you actually gain
- Marginal rate: If the rise crosses £50,270, some of it is taxed at 40% instead of 20%
- Student loan & pension: Both affect the calculation if you have contributions
All calculations run entirely in your browser. No data is sent to our servers, stored, or shared with any third party.
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.