How do I compare two job salaries after tax in the UK?

To compare two salaries fairly, you need to calculate the net take-home pay for each after Income Tax, National Insurance, and any pension contributions. A £40,000 salary with a 5% employer pension contribution may be worth more than a £42,000 salary with no pension. Use our calculator to enter both salaries and see the true net difference.

Does location affect salary comparison in the UK?

Tax rates are the same across England, Wales, and Northern Ireland. Scotland has its own Income Tax bands which can mean slightly different take-home pay for the same salary. Cost of living varies significantly — London salaries typically need to be 20–30% higher to provide equivalent purchasing power compared to most other UK cities.

How does a company car or benefits package affect salary comparison?

Benefits-in-kind like company cars, private medical insurance, and gym memberships have a taxable value (Benefit in Kind) which increases your overall tax liability. When comparing a job with benefits versus one without, deduct the tax cost of the BiK from the gross salary to get a true comparison. Our salary comparison tool focuses on cash salary — factor in benefits separately.

What is the tax difference between a £50,000 and £60,000 salary?

At £50,000 you pay basic rate (20%) tax on income between £12,570 and £50,270, then start paying higher rate (40%) on the £730 above £50,270. At £60,000, you pay 40% on £9,730 above £50,270. You also lose 1% of your Personal Allowance for every £2 over £100,000. The net difference in take-home is approximately £5,800–£6,200 depending on National Insurance and pension contributions.

How much more do I actually take home going from £30,000 to £40,000?

The £10,000 gross increase is not all take-home. You pay 20% Income Tax and 8% National Insurance on most of it, so approximately £7,200 goes to tax and NICs, leaving around £2,800 extra per year (roughly £230/month) in take-home pay. Pension contributions on the additional income would reduce this further.

2026/27

UK Salary Comparison Calculator

Compare two salaries side by side. See the difference in take-home pay, tax and National Insurance.

Enter two salaries to compare — useful for job offers, promotions, or location comparisons.

Salary A

Annual Gross Salary Pension Contribution (%) Student Loan Plan

Salary B

Annual Gross Salary Pension Contribution (%) Student Loan Plan

How to Use the Salary Comparison Tool

Enter the gross salary, pension contribution percentage and student loan plan for each job. The calculator shows you the exact difference in take-home pay, tax, National Insurance and student loan repayments.

When to use this tool

Comparing job offers — See the actual difference in your bank account, not just the headline salary
Negotiating a pay rise — Understand how much extra you really get from a £5,000 or £10,000 increase
Location comparisons — A £45,000 job in London vs a £40,000 job elsewhere (factor in cost of living)
Pension trade-offs — See how increasing your pension contribution affects your take-home pay