Compare Two Salaries After Tax 2025-26

How much of a pay rise do you actually keep?

When you get a salary increase in the UK, Income Tax and National Insurance reduce the amount you actually take home. At the Basic Rate (20% tax + 8% NI), you keep roughly 72p of every extra pound. Once you cross £50,270 and enter the Higher Rate band (40% tax + 2% NI), you keep only 58p per pound.

The £100,000–£125,140 range is even more punishing: the Personal Allowance taper creates an effective 60% Income Tax rate, meaning you keep just 32p per extra pound earned in this bracket.

Why side-by-side comparisons matter

A £5,000 gross pay rise from £30,000 to £35,000 gives you about £3,400 extra take-home per year. The same £5,000 rise from £50,000 to £55,000 gives you only about £2,900. These comparisons make the real difference instantly visible.