Updated for 2025/26
£105,000 vs £120,000 Salary Comparison
Compare a £105,000 salary against £120,000. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£15,000
per year
Take Home Extra
+£475.00
per month
You Keep
38%
of the raise
5-Year Gain
+£28,500
cumulative
Senior Leadership Compensation
At this level, tax efficiency becomes crucial. Between £100,000.00-£125,140.00, you face an effective 60% marginal rate as personal allowance is withdrawn.
- The £100k-£125k "trap" means earning £100k often leaves you with more than £115k
- Employer pension contributions can reduce taxable income below key thresholds
- Consider spreading bonuses across tax years where possible
- Professional tax advice typically pays for itself at this level
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
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Comparison Results
| Metric | £105,000 | £120,000 | Difference |
|---|---|---|---|
| Gross Salary | £105,000 | £120,000 | £15,000 |
| Income Tax | £30,432 | £39,432 | £9,000 |
| National Insurance | £4,111 | £4,411 | £300 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £70,457 | £76,157 | £5,700 |
| Take-Home (Monthly) | £5,871 | £6,346 | £475 |
| Effective Tax Rate | 32.9% | 36.5% | 3.6% |
£105,000
Gross£105,000
Take-Home£70,457
You Keep67.1%
£120,000
Gross£120,000
Take-Home£76,157
You Keep63.5%
Tax Band Analysis
Understanding where your money goes
£105,000
Tax BandHigher Rate
Marginal Rate40%
Income Tax£30,432.00
National Insurance£4,110.60
Take Home (Monthly)£5,871.45
£120,000
Tax BandHigher Rate
Marginal Rate40%
Income Tax£39,432.00
National Insurance£4,410.60
Take Home (Monthly)£6,346.45
What £475.00 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget
Savings Boost
£5,700.00/year extra into savings or investments
Full Comparison: £105,000 vs £120,000
£105,000
- Gross Pay£105,000.00
- Take Home (Year)£70,457.40
- Take Home (Month)£5,871.45
- Effective Tax Rate32.9%
£120,000
- Gross Pay£120,000.00
- Take Home (Year)£76,157.40
- Take Home (Month)£6,346.45
- Effective Tax Rate36.5%
The difference in take-home pay is £5,700 per year, which works out to £475.00 per month.