Pay rise calculator
A pay rise is negotiated in gross and lived in net. Between the two sits a marginal rate that can be anywhere from 28% to 71% depending on where you currently sit, which is why two people can be offered the same rise and one of them barely notices it.
That is £35,920 a year after income tax, National Insurance and anything else coming off your pay.
- Income tax
- £6,486
- National Insurance
- £2,594
- Effective rate
- 20.2%
- Marginal rate
- 28.0%
| Year | Month | Week | Hour | |
|---|---|---|---|---|
| Gross pay | £45,000.00 | £3,750.00 | £865.38 | £23.08 |
| Income tax | £-6,486.00 | £-540.50 | £-124.73 | £-3.33 |
| National Insurance | £-2,593.92 | £-216.16 | £-49.88 | £-1.33 |
| Take-home pay | £35,920.08 | £2,993.34 | £690.77 | £18.42 |
What a rise is actually worth
| Salary before | Gross rise | Net gain a year | A month | You keep | Lost to deductions |
|---|---|---|---|---|---|
| £25,000 | £3,000 | £2,160 | £180.00 | 72.0% | 28.0% |
| £35,000 | £3,000 | £2,160 | £180.00 | 72.0% | 28.0% |
| £45,000 | £3,000 | £2,160 | £180.00 | 72.0% | 28.0% |
| £52,000 | £3,000 | £1,740 | £145.00 | 58.0% | 42.0% |
| £62,000 | £3,000 | £1,740 | £145.00 | 58.0% | 42.0% |
| £78,000 | £3,000 | £1,740 | £145.00 | 58.0% | 42.0% |
| £102,000 | £3,000 | £1,140 | £95.00 | 38.0% | 62.0% |
| £115,000 | £3,000 | £1,140 | £95.00 | 38.0% | 62.0% |
The same £3,000 is worth £2,160 a year at £35,000 and £1,140 at £115,000. That is not a rounding difference — it is the Personal Allowance taper turning a 40% marginal rate into 60%, and it is the single most useful thing to know before you accept a number.
The five thresholds worth knowing before you negotiate
There are five points on the UK salary ladder where a rise is worth materially less than the one just below it. Knowing which one you are approaching is worth more in a pay conversation than any amount of market data.
| Crossing | What happens | Marginal rate after |
|---|---|---|
| £50,270 (England, Wales, NI) | Higher rate starts at 40%, National Insurance drops to 2% | 42.0% |
| £43,663 (Scotland) | Scottish higher rate starts at 42%, National Insurance still 8% | 50.0% |
| £60,000 | High Income Child Benefit Charge begins | 42% plus the charge |
| £100,000 | Personal Allowance tapers away at £1 for every £2 | 62.0% |
| £125,140 | Additional rate starts, allowance already gone | 47.0% |
Add a Plan 2 student loan and every one of those numbers goes up by nine points. A higher-rate taxpayer with a student loan keeps about 49p in the pound; inside the taper with a student loan, 29p. The 60% trap calculator covers what to do about the taper specifically.
The rise that costs you money
It is rare but it is real. If a rise pushes you across a pension contribution tier boundary — the NHS and Teachers' Pension schemes both have them — the extra contribution can outrun the extra pay. The NHS tier trap page works out exactly where that happens in the NHS, and the teachers' pension page does the same for teachers. Outside those schemes, the equivalent trap is a childcare eligibility cliff or the Child Benefit charge rather than tax itself.
What to ask for instead
If you are inside the Personal Allowance taper, a pound of pension contribution is worth roughly two and a half times a pound of salary, because it comes out before the taper applies. Asking for the rise to go into the pension instead of the payslip is not a consolation prize at that salary; it is arithmetically the better ask. The salary sacrifice calculator prices it. Below the higher rate threshold the maths reverses and cash is usually worth more than benefits, because your marginal rate is low enough that you keep most of it.
Questions people actually ask
How much of a pay rise do you actually keep?
Between 29p and 72p in the pound, depending on where the rise sits. A basic rate taxpayer with no student loan keeps 72p. A higher rate taxpayer keeps 58p. Inside the £100,000 to £125,140 taper it is 38p, and 29p if you also have a Plan 2 loan.
Is a 5% rise good?
It depends entirely on where it lands you. A 5% rise from £48,000 to £50,400 crosses the higher rate threshold, so the last £130 of it is taxed at 42% rather than 28%. A 5% rise from £30,000 is worth a clean 72p in the pound.
Should I ask for salary or pension?
Above £100,000, pension, and it is not close. Between £60,000 and £80,000 with children, pension, because it also pulls your adjusted net income back below the Child Benefit charge. Below the higher rate threshold, cash.
When will I see it in my pay?
The month it is applied, plus any backdating. If it is backdated, the extra lands in one month and cumulative PAYE will over-tax that month before correcting itself. The bonus month guide explains why that happens.
If you are deciding about a rise
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.