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Updated for 2025/26

£16,226 vs £20,726 Salary Comparison

Compare a £16,226 salary against £20,726. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£4,500
per year
Take Home Extra
+£270.00
per month
You Keep
72%
of the raise
5-Year Gain
+£16,200
cumulative

Entry-Level Career Progression

This comparison is typical for early career moves or first promotions. At this salary range, most of your income is taxed at the basic rate (20%), so you keep a higher percentage of any raise.

  • Negotiate hard - you keep ~70-80% of any increase at this level
  • Consider employers offering good pension matching (often worth more than small salary differences)
  • Look for roles with clear progression paths to higher bands
  • Factor in benefits like free lunches, gym memberships, or transport subsidies

Compare Salaries

Enter multiple salaries to compare take-home pay for 2025/26

£
£

Comparison Results

Metric£16,226£20,726Difference
Gross Salary£16,226£20,726£4,500
Income Tax£731£1,631£900
National Insurance£292£652£360
Pension£0£0£0
Take-Home Pay (Yearly)
£15,202
£18,442
£3,240
Take-Home (Monthly)£1,267£1,537£270
Effective Tax Rate6.3%11.0%4.7%

£16,226

Gross£16,226
Take-Home£15,202
You Keep93.7%

£20,726

Gross£20,726
Take-Home£18,442
You Keep89.0%

Tax Band Analysis

Understanding where your money goes

£16,226

Tax BandBasic Rate
Marginal Rate20%
Income Tax£731.20
National Insurance£292.48
Take Home (Monthly)£1,266.86

£20,726

Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,631.20
National Insurance£652.48
Take Home (Monthly)£1,536.86

What £270.00 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

Full Comparison: £16,226 vs £20,726

£16,226

  • Gross Pay£16,226.00
  • Take Home (Year)£15,202.32
  • Take Home (Month)£1,266.86
  • Effective Tax Rate6.3%

£20,726

  • Gross Pay£20,726.00
  • Take Home (Year)£18,442.32
  • Take Home (Month)£1,536.86
  • Effective Tax Rate11.0%

The difference in take-home pay is £3,240 per year, which works out to £270.00 per month.