Pay Rise Calculator UK 2026/27
A pay rise is great news, but how much extra will you actually take home? Your marginal tax rate determines the real value.
Quick Formula
Net Increase = Pay Rise × (1 - Marginal Tax Rate - NI Rate)
| Your Band | You Keep | On £5,000 Rise |
|---|---|---|
| Below threshold | 100% | £5,000 |
| Basic rate | 72% | £3,600 |
| Higher rate | 58% | £2,900 |
| 60% trap | 38% | £1,900 |
| Additional | 53% | £2,650 |
Pay Rise Examples
£30,000 to £35,000 (Basic Rate)
| Metric | Before | After | Increase |
|---|---|---|---|
| Gross | £30,000 | £35,000 | £5,000 |
| Income Tax | £3,486 | £4,486 | £1,000 |
| NI | £2,018 | £2,618 | £600 |
| Take-Home | £24,496 | £27,896 | £3,400 |
Real value: 68% of the gross increase.
£48,000 to £55,000 (Crossing into Higher Rate)
| Metric | Before | After | Increase |
|---|---|---|---|
| Gross | £48,000 | £55,000 | £7,000 |
| Take-Home | £36,046 | £40,696 | £4,650 |
Real value: 66% (blended rate as you cross threshold).
£95,000 to £105,000 (The 60% Trap)
| Metric | Before | After | Increase |
|---|---|---|---|
| Gross | £95,000 | £105,000 | £10,000 |
| Take-Home | £62,996 | £67,296 | £4,300 |
Real value: only 43% due to Personal Allowance taper!
Watch Out For
1. Crossing Tax Thresholds
| Threshold | What Happens |
|---|---|
| £50,270 | Higher rate begins (40%) |
| £60,000 | HICBC starts |
| £100,000 | Personal Allowance taper |
| £125,140 | Additional rate begins |
2. Child Benefit Clawback
If pay rise takes you from £55k to £65k:
- HICBC increases from 0% to 25% clawback
- Real value of rise reduced further
3. Student Loan Impact
Pay rise increases student loan repayments by 9% of the increase above threshold.
Negotiating Pay Rises
When negotiating, consider:
- Total package - Pension contributions may be more tax-efficient
- Timing - Start date affects which tax year
- Benefits - Some are more tax-efficient than cash
- One-off vs permanent - Bonus vs salary increase
Related Calculators
- Pay Rise Calculator - Calculate your real increase
- Take Home Pay Calculator - Compare scenarios
- Salary Comparison Calculator - Compare offers