Pay Rise Calculator
Find out exactly how much extra you'll take home after a pay rise. See the real impact after Income Tax, National Insurance, and other deductions.
Your Pay Rise
Calculate how much extra you'll take home
Your Increase
Extra take-home after tax (2025/26)
Before vs After Comparison
Current Salary
After Pay Rise
Understanding Your Pay Rise
Keep about 68p of every £1 raise (20% tax + 8% NI + 4% pension typically)
Keep about 58p of every £1 raise (40% tax + 2% NI)
The "60% tax trap" - Personal Allowance taper hits hard
Tips for Maximizing Your Pay Rise
Consider Salary Sacrifice
If your new salary crosses £100,000, sacrificing to pension can avoid the 60% tax trap and boost your retirement pot. Use our Salary Sacrifice Calculator to see the benefits.
Check Your Tax Code
Make sure your tax code is correct after a pay rise. An outdated code could mean you're over or underpaying tax. Use our Tax Code Checker to verify.
Plan for Threshold Crossings
Crossing from basic to higher rate (£50,270) or into the taper zone (£100,000) has big tax implications. Consider timing bonuses or pension contributions strategically.
Frequently Asked Questions
How much of my pay rise will I actually keep?
The amount you keep depends on your tax band. Basic rate taxpayers (£12,571-£50,270) keep about 68% of a pay rise after 20% Income Tax and 8% NI. Higher rate taxpayers (£50,271-£125,140) keep about 58% after 40% tax and 2% NI. Those earning £100k-£125,140 may keep as little as 38% due to the Personal Allowance taper.
What is the 60% tax trap?
Between £100,000 and £125,140, your Personal Allowance reduces by £1 for every £2 earned above £100k. Combined with 40% tax and 2% NI, this creates an effective 62% marginal tax rate. A £10,000 pay rise in this band only adds about £3,800 to your take-home pay.
Is a percentage or fixed amount pay rise better?
From a tax perspective, they work the same - only the final salary matters. A 5% rise on £40,000 (£2,000) is taxed identically to a flat £2,000 increase. However, percentage rises preserve your purchasing power better against inflation over time.
How can I maximize the value of my pay rise?
If your pay rise pushes you into a higher tax band or into the £100k-£125k taper zone, consider salary sacrifice to pension. This reduces your taxable income while boosting retirement savings. It's especially valuable if you're in the 60% tax trap zone.
Does my pay rise affect my student loan repayments?
Yes, student loan repayments are 9% of income above the threshold (Plan 2: £28,470, Plan 1: £26,065). A pay rise increases your repayments, but you pay off your loan faster.