You have been offered a promotion, a new job or an annual pay review is coming up. The gross salary looks great. But the question that actually matters is: how much of that pay rise will arrive in your bank account each month?
A gross salary increase is not the same as a net salary increase. In the UK, every extra pound you earn is subject to Income Tax and National Insurance — and depending on your situation, pension contributions, student loan repayments and other deductions will take their own share too. This guide cuts through the numbers so you can make a fully informed decision.
💡 Quick Answer
For a basic-rate taxpayer (earning up to £50,270) in 2026/27, you keep 72p of every extra £1 earned — because 20p goes in Income Tax and 8p in National Insurance. A £5,000 pay rise in this band adds roughly £300/month to your take-home.
For a higher-rate taxpayer (£50,271–£100,000), you keep 58p per £1. In the Personal Allowance taper zone (£100,000–£125,140), the effective rate reaches 62%, leaving just 38p per £1 — the infamous 60% trap.
Calculator prompt: Enter your current salary and your proposed new salary into the take-home pay calculator and compare the monthly net figures side by side.
In this guide
- 1. What Takes a Slice of Your Pay Rise
- 2. UK Marginal Rates: What You Keep at Every Level
- 3. Why Your Pay Rise Feels Smaller Than Expected
- 4. A £2,000 Pay Rise: How Much Do You Keep?
- 5. A £5,000 Pay Rise: £30,000 to £35,000
- 6. A £10,000 Pay Rise: £40,000 to £50,000
- 7. Crossing the Higher Rate: £50,000 to £60,000
- 8. The £100,000 Trap: £95,000 to £105,000
- 9. Student Loan Impact on a Pay Rise
- 10. The High Income Child Benefit Charge
- 11. Scotland: How Scottish Tax Changes the Picture
- 12. How to Compare Two Salary Offers Properly
- 13. Should You Increase Pension Contributions After a Pay Rise?
- 14. Frequently Asked Questions
- 15. Summary
1. What Takes a Slice of Your Pay Rise
Before calculating how much you keep, it helps to understand everything that can reduce a pay rise. Not all of these will apply to you — but knowing which ones do is the difference between a realistic expectation and a nasty surprise.
Income Tax
The largest deduction on extra earnings. In 2026/27, the basic rate is 20% on income between £12,570 and £50,270, and 40% above that. If any part of your pay rise crosses from basic to higher rate, that portion is taxed more heavily. See the UK tax rates 2026/27 guide for the full band breakdown.
National Insurance
8% on earnings between £12,570 and £50,270; 2% above that. NI and Income Tax together account for 28% of every extra pound in the basic rate band and 42% in the higher rate band.
Workplace pension contributions
If you contribute a percentage of salary (rather than a flat amount), a higher gross salary automatically increases your pension deduction. On 5% contributions, a £5,000 rise adds £250/year to your pension deduction — though the tax relief means the actual cost to your take-home is lower than this.
Student loan repayments
A pay rise that takes you above your plan's threshold (or further above it) increases your student loan deduction by 9% of the additional income above the threshold. On Plan 2 (threshold £29,385), each extra £1,000 over the threshold costs £90/year = £7.50/month in student loan repayments.
Postgraduate loan repayments
The Postgraduate Loan (Plan 3) applies alongside any undergraduate loan, at 6% of earnings above £21,000. If you already earn above £21,000, the full pay rise increases this deduction at 6p per extra £1.
Loss of Personal Allowance above £100,000
Above £100,000, your Personal Allowance (£12,570 for 2026/27) is withdrawn at £1 for every £2 earned above £100,000. The result is an effective marginal Income Tax rate of 60% on income between £100,000 and £125,140. This is the most impactful threshold in the UK tax system for higher earners.
High Income Child Benefit Charge
If you or your partner earns above £60,000 and claims Child Benefit, the charge gradually claws back the benefit at 1% per £200 above £60,000, with full clawback at £80,000. A pay rise that crosses £60,000 starts this process. See Section 10 for a full example.
2. UK Marginal Rates: What You Keep at Every Level
The table below shows the effective marginal rate at each income band — in other words, for every extra £1 of gross pay, how much you actually keep after Income Tax and National Insurance (before pension or student loan).
| Income Range | Income Tax Rate | NI Rate | Total Lost | You Keep |
|---|---|---|---|---|
| Up to £12,570 (Personal Allowance) | 0% | 0% | 0% | 100p per £1 |
| £12,570 – £50,270 (basic rate band) | 20% | 8% | 28% | 72p per £1 |
| £50,271 – £100,000 (higher rate band) | 40% | 2% | 42% | 58p per £1 |
| £100,001 – £125,140 (PA taper zone) | 60% effective* | 2% | 62% | 38p per £1 |
| Above £125,140 (additional rate) | 45% | 2% | 47% | 53p per £1 |
*60% effective rate in the PA taper zone = 40% higher rate tax on the income itself plus 40% tax on the Personal Allowance being withdrawn (£1 lost for every £2 earned, taxed at 40% = extra 20 effective pence per £1). Scotland has different rates — see Section 11.
🔎 The key insight
The jump from 72p to 58p when crossing £50,270 means a pay rise that straddles the boundary produces two different net rates on the same rise. The portion below £50,270 keeps 72p per £1; the portion above keeps only 58p per £1. You are never worse off earning more — but the net gain per pound falls sharply when you cross thresholds.
3. Why Your Pay Rise Feels Smaller Than Expected
There are several reasons a pay rise can feel disappointing when the first post-rise payslip arrives:
- You compared gross to gross. Seeing your salary go from £35,000 to £40,000 feels like a £5,000 increase. In practice it is £300/month extra in your bank account — not £417/month.
- Your pension contribution increased proportionally. If your employer contributions are percentage-based, both your deduction and your employer's top-up increase — but you only feel the deduction side immediately.
- Your student loan deduction increased. If the rise takes you further above your threshold, more is deducted each month. At Plan 2, each extra £5,000 over the threshold adds £37.50/month in student loan repayments.
- Part of the rise crossed into the higher rate band. If you moved from £49,000 to £53,000, the first £1,270 of the rise (up to the £50,270 threshold) kept 72p per £1, while the remaining £2,730 kept only 58p. The blend was about 63p per £1.
- A tax code adjustment is collecting underpaid tax from last year. This can temporarily depress your net pay even after a rise. Check your payslip tax code — it should be 1257L for most employees in a straightforward situation.
4. A £2,000 Pay Rise: How Much Do You Keep?
A £2,000 gross pay rise within the basic rate band produces the same net gain regardless of where in the band you start — because the marginal rate is flat at 28%.
| From | To | Annual Net Gain | Monthly Net Gain | % Kept |
|---|---|---|---|---|
| £25,000 | £27,000 | £1,440 | £120.00 | 72% |
| £30,000 | £32,000 | £1,440 | £120.00 | 72% |
| £40,000 | £42,000 | £1,440 | £120.00 | 72% |
| £48,000 | £50,000 | £1,440 | £120.00 | 72% |
| £50,000 | £52,000 | £1,198 | £99.82 | 59.9% |
The £50,000 → £52,000 row stands out. Crossing the higher rate threshold at £50,270 means the last £1,730 of that rise is taxed at 42% rather than 28%. The monthly gain drops from £120 to just under £100 as a result.
📌 Calculator prompt
To see your specific figures: enter your current salary into the take-home pay calculator, note the monthly net pay, then enter your proposed new salary and compare. The difference is your real monthly gain.
5. A £5,000 Pay Rise: £30,000 to £35,000
This is one of the most common pay rise scenarios for UK graduates and mid-career employees. The full £5,000 falls within the basic rate band, so the maths is straightforward:
| £30,000 | £35,000 | Change | |
|---|---|---|---|
| Gross Monthly | £2,500.00 | £2,916.67 | +£416.67 |
| Income Tax (monthly) | £290.50 | £373.83 | +£83.33 |
| National Insurance (monthly) | £116.17 | £149.50 | +£33.33 |
| Net Take-Home (monthly) | £2,093.33 | £2,393.33 | +£300.00 |
A £5,000 gross rise adds exactly £300 per month to your take-home — that is £3,600 per year. The effective deduction on the additional income is 28%.
The same rise with a Plan 2 student loan
At £30,000 on Plan 2, you are barely above the £29,385 threshold — paying only around £4.61/month. At £35,000 you pay £42.11/month. The rise adds £37.50/month in extra student loan deductions on top of the tax and NI impact.
| Without Student Loan | With Plan 2 Loan | |
|---|---|---|
| Monthly net gain | £300.00 | £262.50 |
| Annual net gain | £3,600 | £3,150 |
| % of rise kept | 72.0% | 63.0% |
🔎 Promotion negotiation tip
If you are negotiating a promotion from £30,000 and your employer offers £35,000, the real monthly gain is between £262.50 (with Plan 2 loan) and £300 (without). If you also contribute 5% to a pension based on salary, add another roughly £21/month in pension cost. Your bank balance improves by around £240–£300/month. A useful figure to have before the negotiation.
6. A £10,000 Pay Rise: £40,000 to £50,000
A £10,000 rise entirely within the basic rate band follows the same 72% retention rule. Since £50,000 is still below the higher rate threshold of £50,270, the full rise is taxed at basic rate:
| £40,000 | £50,000 | Change | |
|---|---|---|---|
| Gross Monthly | £3,333.33 | £4,166.67 | +£833.33 |
| Income Tax (monthly) | £457.17 | £623.83 | +£166.67 |
| National Insurance (monthly) | £182.83 | £249.50 | +£66.67 |
| Net Take-Home (monthly) | £2,693.33 | £3,293.33 | +£600.00 |
A £10,000 basic-rate rise adds exactly £600/month to your take-home — simple, predictable, 72% kept.
For a full breakdown of the £50,000 salary, see the £50,000 take-home pay page. If you are converting your salary offer to an hourly rate to compare contracts, use the salary to hourly calculator.
7. Crossing the Higher Rate Threshold: £50,000 to £60,000
This is where a pay rise becomes noticeably less valuable per pound. The higher rate threshold for 2026/27 is £50,270. Any earnings above this are taxed at 40% rather than 20%.
| £50,000 | £60,000 | Change | |
|---|---|---|---|
| Gross Monthly | £4,166.67 | £5,000.00 | +£833.33 |
| Income Tax (monthly) | £623.83 | £952.67 | +£328.83 |
| National Insurance (monthly) | £249.50 | £267.55 | +£18.05 |
| Net Take-Home (monthly) | £3,293.33 | £3,779.78 | +£486.45 |
The same £10,000 gross rise now adds only £486/month instead of £600 — a reduction of £114/month compared to the basic-rate equivalent. This is because the £9,730 above the threshold is taxed at 40% + 2% rather than 20% + 8%.
⚠️ Common misconception
Crossing the higher rate threshold does not mean your whole salary is taxed at 40%. Only the income above £50,270 pays the higher rate. Your take-home still increases meaningfully with a higher salary — it just increases at a lower rate per extra pound. Refusing a pay rise to avoid the higher rate band is never the right financial decision.
For the full £60,000 take-home breakdown, see the £60,000 take-home pay page.
8. The £100,000 Trap: £95,000 to £105,000
The most damaging effective tax rate in the UK sits between £100,000 and £125,140. In this band, your Personal Allowance is withdrawn at £1 for every £2 of additional income. The result is an effective marginal Income Tax rate of 60% — the highest you will face at any income level.
Why the rate is effectively 60%
- You pay 40% higher-rate tax on the extra income itself.
- You lose £1 of Personal Allowance for every £2 earned — that lost allowance was previously sheltering income from tax at 40%, so withdrawing it costs an additional 20 effective pence per £1 earned.
- Adding 2% NI pushes the total marginal deduction to 62%.
| £95,000 | £105,000 | Change | |
|---|---|---|---|
| Gross Monthly | £7,916.67 | £8,750.00 | +£833.33 |
| Income Tax (monthly) | £2,119.33 | £2,536.00 | +£416.67 |
| National Insurance (monthly) | £325.88 | £342.55 | +£16.67 |
| Net Take-Home (monthly) | £5,471.45 | £5,871.45 | +£400.00 |
A £10,000 gross rise from £95,000 to £105,000 adds just £400/month net — compared to £600 for the same rise entirely within the basic rate band. The £5,000 that crosses from £100,000 to £105,000 is particularly poor value: it nets only about £158/month from £417 gross.
📌 The strategic response to the taper
For earners approaching or inside the £100,000–£125,140 zone, salary sacrifice pension contributions are often the most powerful tool available. Every pound you redirect into your pension reduces your adjusted net income, potentially restoring your Personal Allowance. Contributing £10,000 to pension via sacrifice when earning £110,000 restores roughly £5,000 of Personal Allowance — worth around £2,000 in annual tax relief. For a full £100,000 salary breakdown, see the £100,000 take-home pay page.
A summary of the main pay rise scenarios
| Scenario | Gross Rise | Monthly Gross Rise | Monthly Net Gain | % Kept |
|---|---|---|---|---|
| £28,000 → £30,000 | £2,000 | £166.67 | £120.00 | 72% |
| £30,000 → £35,000 | £5,000 | £416.67 | £300.00 | 72% |
| £40,000 → £50,000 | £10,000 | £833.33 | £600.00 | 72% |
| £50,000 → £60,000 | £10,000 | £833.33 | £486.45 | 58.4% |
| £90,000 → £100,000 | £10,000 | £833.33 | £483.33 | 58% |
| £95,000 → £105,000 | £10,000 | £833.33 | £400.00 | 48% |
| £100,000 → £110,000 | £10,000 | £833.33 | £316.67 | 38% |
England/Wales/Northern Ireland, 2026/27, standard 1257L code, no pension or student loan deductions. All figures approximate. Use the calculator for your exact net pay.
9. Student Loan Impact on a Pay Rise
Student loan deductions add another layer on top of tax and NI. The extra deduction from a pay rise is simple to calculate: 9% of every extra pound above your plan threshold (6% for postgraduate loans).
| Plan | Threshold | Extra Deduction on £5k Rise (£30k→£35k) | Extra Per Month |
|---|---|---|---|
| Plan 1 | £26,900 | £450/yr (9% × £5,000 above threshold) | £37.50 |
| Plan 2 | £29,385 | £450/yr | £37.50 |
| Plan 5 | £25,000 | £450/yr | £37.50 |
| Postgraduate | £21,000 | £300/yr (6% × £5,000) | £25.00 |
Once you are above your threshold, every plan deducts the same extra amount per additional pound of gross pay — because the additional income above the threshold is what matters, not the threshold itself. On Plans 1, 2 and 5, a £5,000 rise always adds £37.50/month in extra student loan deductions (assuming you were already above the threshold before the rise).
🔎 Combined effect at £30,000 → £35,000
Basic rate only: +£300/month
With Plan 2 loan: +£262.50/month
With Plan 2 + Postgraduate loan: +£237.50/month
With 5% pension salary sacrifice (Plan 2): approximately +£225/month
Still worth having — but notably less than the £416.67 gross monthly increase implies. For your exact figure with all deductions included, use the take-home pay calculator.
For a full explanation of how student loan plans work and their 2026/27 thresholds, see the student loan repayments UK guide.
10. The High Income Child Benefit Charge
If you have children and claim Child Benefit, a pay rise that takes your individual adjusted net income above £60,000 triggers the High Income Child Benefit Charge (HICBC). This claws back Child Benefit at 1% per £200 above £60,000, with a full clawback at £80,000.
Child Benefit rates for 2026/27:
- First or only child: £27.05/week = £1,406.60/year
- Each additional child: £17.90/week = £930.80/year
⚠️ Example: earning £65,000 with one child
Annual Child Benefit: £1,406.60
Income above £60,000: £5,000
HICBC = £5,000 ÷ £200 × 1% × £1,406.60 = 25% × £1,406.60 = £351.65/year
(approximately £29.30/month through Self Assessment)
This is effectively extra tax on top of the 42% marginal rate already
applying at that income level. With two children the charge doubles.
The charge is collected via Self Assessment (or from 2026/27 onwards, through an updated tax code for eligible taxpayers), not through payroll. But it is still a real cost of earning above £60,000. A pay rise from £59,000 to £65,000 that seems to net about £290/month after tax and NI could cost an additional £58/month in HICBC for a family with two children, reducing the real gain to around £232/month.
📌 How to mitigate the HICBC
Salary sacrifice pension contributions reduce your adjusted net income, which is the figure used for HICBC purposes. Contributing enough to bring your adjusted net income below £60,000 eliminates the charge entirely. If your adjusted net income is just above the threshold, a relatively small pension increase could be very cost-effective.
11. Scotland: How Scottish Tax Changes the Picture
If you live in Scotland, your Income Tax is calculated using Scottish rates — which differ significantly from the rest of the UK above approximately £30,000 gross salary.
Scottish Income Tax bands for 2026/27:
| Band | Gross Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £16,537 | 19% |
| Basic Rate | £16,538 – £29,526 | 20% |
| Intermediate Rate | £29,527 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Above £125,140 | 48% |
For Scottish taxpayers, the Intermediate rate of 21% kicks in at £29,527 — meaning a pay rise that crosses this threshold is taxed at 21% + 8% NI = 29% on income above it, compared to 20% + 8% = 28% in England. The Scottish Higher rate of 42% starts at £43,663, compared to £50,270 in England. This means a Scottish employee earning £50,000 is already paying higher rate on over £6,000 of income that an English employee would still have at 20%.
⚠️ Scottish tax affects your pay rise calculations
All the England/Wales figures in this article do not apply if you live in Scotland. The marginal rate at which a pay rise is taxed will differ, sometimes substantially. Use the Scotland take-home pay calculator and compare both your current and proposed salary. See the Scotland tax rates 2026/27 article for the full breakdown.
12. How to Compare Two Salary Offers Properly
Gross salary comparison is the starting point — not the finish line. Here is a practical approach to comparing a current salary against a new offer:
- Calculate monthly net for each salary. Use the take-home pay calculator for both, entering the same tax code, pension rate and student loan plan. The difference in monthly net pay is your real take-home gain.
- Check whether the new role changes your pension contribution. A job paying £40,000 with 5% employer pension is worth more than a £41,000 job with 3% employer pension, even if the net pay looks similar.
- Account for changes in travel costs. A £3,000 rise that comes with an extra £200/month in commuting costs effectively nets less than it looks. Travel costs are not tax-deductible for most employees.
- Check working hours. If a £5,000 pay rise requires 5 more hours per week, use the hourly to salary calculator to compare the effective hourly rate of both roles after tax.
- Factor in student loan impact. If the new salary sits above a student loan threshold you currently fall below, a new deduction will start immediately. This can significantly reduce the apparent gain from a modest pay rise.
- Check the Child Benefit position. If you are moving close to or above £60,000, model the HICBC impact before accepting.
📌 Is overtime worth it?
Overtime is subject to the same marginal rates as regular pay — it is just additional gross earnings. For a basic-rate taxpayer, an overtime payment of £500 nets £360. For a higher-rate taxpayer, the same £500 nets £290. Use the monthly to hourly calculator to work out your effective hourly rate, then multiply by your overtime hours and apply the marginal rate to see the net value.
13. Should You Increase Pension Contributions After a Pay Rise?
A pay rise is often the best time to increase pension contributions, for one practical reason: you can redirect some or all of the rise into your pension without reducing your current take-home pay. If you were living comfortably on your old salary, you will not miss what you never received.
The tax-efficiency angle
Pension contributions via salary sacrifice reduce your taxable income. This means the real cost to your take-home pay is less than the headline contribution amount:
| Tax Band | Gross Pension Contribution | Tax + NI Relief | Real Cost to Take-Home |
|---|---|---|---|
| Basic rate (up to £50,270) | £1,000 | £280 (20% tax + 8% NI) | £720 |
| Higher rate (£50,271–£100,000) | £1,000 | £420 (40% tax + 2% NI) | £580 |
| PA taper zone (£100k–£125,140) | £1,000 | £620 (60% effective + 2% NI) | £380 |
For a basic-rate taxpayer, every £100 directed into a pension via salary sacrifice reduces take-home by only £72. The other £28 comes from reduced tax and NI, effectively making the government and HMRC co-fund your pension.
Specific strategic situations
- Near the £50,270 higher rate threshold: A pay rise that takes you into the higher rate band can be partially offset by increasing pension contributions. Contributing enough to keep your adjusted net income below £50,270 means the entire rise remains taxed at 20% rather than 40%.
- Near the £100,000 Personal Allowance taper: Even a small pension increase at this level is very efficient. Bringing adjusted net income back below £100,000 restores the full Personal Allowance, recovering £12,570 of tax-free income taxed at 40% = £5,028/year.
- Near the £60,000 HICBC threshold: If you claim Child Benefit and earn slightly above £60,000, salary sacrifice to bring adjusted net income below £60,000 eliminates the charge entirely and keeps the full benefit.
📌 Using your pay rise to fund pension without losing take-home
Example: You earn £35,000 and receive a £5,000 rise to £40,000. The rise nets £300/month after tax and NI. Instead of taking all of it, you contribute £2,500 extra to pension via salary sacrifice (keeping your effective salary at £37,500). Your take-home increases by £150/month AND your pension grows by £2,500/year. The £2,500 pension contribution cost you only £1,800 in take-home (72% × £2,500). You took home £150/month more and funded a pension at 28p subsidy per pound.
14. Frequently Asked Questions
How much of a pay rise do I actually keep after tax?
For a basic-rate taxpayer (up to £50,270), you keep 72p per £1 of gross rise — Income Tax takes 20p and NI takes 8p. At higher rate (£50,271–£100,000) you keep 58p. In the Personal Allowance taper zone (£100,000–£125,140), the effective marginal rate is 62%, leaving just 38p per £1. See the marginal rates table in Section 2 for a full breakdown.
How much does a £5,000 pay rise add to my monthly take-home?
Within the basic rate band: exactly £300/month (£3,600/year). With a Plan 2 student loan, add approximately £37.50/month in extra deductions, leaving around £262.50/month. If the rise crosses the higher rate threshold, the portion above £50,270 is subject to 42% (40% + 2% NI) rather than 28%, reducing the monthly gain.
Does crossing the higher rate band mean I take home less money overall?
No. You always take home more by earning more. Crossing a tax threshold does not make your entire salary subject to the higher rate — only the income above the threshold. You just keep a smaller proportion of each extra pound above the threshold. Declining a pay rise to stay in a lower band is never financially beneficial.
What is the 60% tax trap?
The 60% trap is the effective marginal Income Tax rate on income between £100,000 and £125,140. This happens because your Personal Allowance is withdrawn at £1 for every £2 you earn above £100,000. You pay 40% tax on the income itself, plus effectively pay 40% tax on the allowance you have lost, resulting in a combined 60% effective income tax rate (62% including NI). On a £10,000 rise in this zone, you keep only about £3,800.
How does a pay rise affect my student loan repayments?
Any part of the rise that exceeds your student loan threshold adds 9% in deductions (6% for Postgraduate Loan). On a £5,000 rise entirely above your threshold, the extra student loan cost is £450/year = £37.50/month. This is on top of the tax and NI impact. To check the combined effect, use the take-home pay calculator with your loan plan selected.
Is it worth increasing pension contributions after a pay rise?
In most cases, yes — especially if a pay rise has pushed you into a higher tax band, close to the Personal Allowance taper, or near the High Income Child Benefit Charge threshold. Salary sacrifice pension contributions reduce your adjusted net income, potentially restoring allowances and reducing effective marginal rates. For a basic-rate taxpayer, every £100 to pension costs only £72 in take-home due to tax and NI relief.
How does a pay rise work differently in Scotland?
Scotland has six income tax bands. The Intermediate rate of 21% kicks in at £29,527 and the Higher rate of 42% at £43,663 — both lower than their equivalents in England (£50,270). This means a pay rise in the £30,000–£75,000 range is typically taxed at a higher marginal rate in Scotland than in England. Always use the Scotland take-home pay calculator for accurate Scottish figures.
How do I compare a new job offer to my current salary?
Calculate the monthly net take-home for both salaries using the take-home pay calculator, entering the same pension rate, tax code and student loan plan. Then account for differences in pension contributions, travel costs, working hours and any changes to benefits. Gross salary comparison alone can be misleading — particularly if the new role crosses a tax threshold or triggers a new student loan deduction.
How does overtime affect my take-home pay?
Overtime is taxed at your marginal rate — the same rate as any other additional earnings. For a basic-rate taxpayer, £500 of overtime nets £360. For a higher-rate taxpayer, the same £500 nets £290. If overtime pushes your monthly gross above a student loan threshold, an additional deduction may apply in that month. Use the monthly to hourly calculator to calculate your effective hourly rate.
15. Summary
A gross pay rise is always worth having — but knowing exactly what you will keep is essential for negotiation, planning and setting realistic expectations.
The core rule for 2026/27 is simple: in the basic rate band (up to £50,270) you keep 72p per £1 of rise. Above £50,270 you keep 58p per £1. In the Personal Allowance taper zone (£100,000–£125,140) you keep only 38p per £1 — the 60% trap.
Additional deductions — pension, student loans, the High Income Child Benefit Charge — can reduce what you keep further, particularly in the £25,000–£50,000 range where graduates with student loans are most affected.
Use the take-home pay calculator to run your current and proposed salary side by side. If you live in Scotland, use the Scotland calculator. Once you know your real monthly gain, the budget planner can help you decide how to allocate it across pension, savings and living costs.
This article is for general information only and does not constitute financial or tax advice. All figures are based on confirmed 2026/27 HMRC rates for England, Wales and Northern Ireland unless otherwise stated. Individual circumstances may vary — always verify with HMRC or a qualified adviser before making financial decisions.