Updated for 2025/26
£118,000 vs £138,000 Salary Comparison
Compare a £118,000 salary against £138,000. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£20,000
per year
Take Home Extra
+£794.08
per month
You Keep
48%
of the raise
5-Year Gain
+£47,645
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 Between £100,000.00-£125,140.00, you face an effective 60% marginal rate as personal allowance is withdrawn.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 | £118,000 | £138,000 | Difference |
|---|---|---|---|
| Gross Salary | £118,000 | £138,000 | £20,000 |
| Income Tax | £38,232 | £48,303 | £10,071 |
| National Insurance | £4,371 | £4,771 | £400 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £75,397 | £84,926 | £9,529 |
| Take-Home (Monthly) | £6,283 | £7,077 | £794 |
| Effective Tax Rate | 36.1% | 38.5% | 2.4% |
£118,000
Gross£118,000
Take-Home£75,397
You Keep63.9%
£138,000
Gross£138,000
Take-Home£84,926
You Keep61.5%
Tax Band Analysis
Understanding where your money goes
£118,000
Tax BandHigher Rate
Marginal Rate40%
Income Tax£38,232.00
National Insurance£4,370.60
Take Home (Monthly)£6,283.12
£138,000
Tax BandAdditional Rate
Marginal Rate45%
Income Tax£48,303.00
National Insurance£4,770.60
Take Home (Monthly)£7,077.20
Tax Band Change: This salary increase crosses from the Higher Rate (40%) into the Additional Rate (45%). The portion above £125,140.00 will be taxed at the higher rate.
What £794.08 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
£9,529.00/year extra into savings or investments
Car Payment
Could cover a decent car on PCP or lease
Full Comparison: £118,000 vs £138,000
£118,000
- Gross Pay£118,000.00
- Take Home (Year)£75,397.40
- Take Home (Month)£6,283.12
- Effective Tax Rate36.1%
£138,000
- Gross Pay£138,000.00
- Take Home (Year)£84,926.40
- Take Home (Month)£7,077.20
- Effective Tax Rate38.5%
The difference in take-home pay is £9,529 per year, which works out to £794.08 per month.