Pay Rise Tax Calculator United Kingdom

This pay rise tax calculator shows how much of a UK pay rise you keep in 2026/27, and the Income Tax and National Insurance taken from the increase.

What it does

The Pay Rise Tax Calculator shows how much of a gross pay rise you actually keep after Income Tax and National Insurance in 2026/27. Enter your current salary and the size of the rise to see the net increase to your take-home pay and how much the taxman takes.

Data sources & parameters

The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.

Parameter	Value	Source	Last updated
Personal Allowance	12,570	gov.uk	Effective 2026-04-06
Basic rate limit (income taxed at basic rate up to this)	50,270	gov.uk	Effective 2026-04-06Label corrected. The stored value was right; the label named a different figure and is shown to readers in the data-sources box.
Higher rate limit (additional rate starts above this)	125,140	gov.uk	Effective 2026-04-06Label corrected. The stored value was right; the label named a different figure and is shown to readers in the data-sources box.
Income above which Personal Allowance tapers	100,000	gov.uk	Effective 2026-04-06
Income Tax basic rate	0.2	gov.uk	Effective 2026-04-06
Income Tax higher rate	0.4	gov.uk	Effective 2026-04-06
Income Tax additional rate	0.45	gov.uk	Effective 2026-04-06
National Insurance primary threshold	12,570	gov.uk	Effective 2026-04-06Unchanged for 2027/28: NI thresholds are frozen until 5 Apr 2031 (Budget 2025), so the row is now open-ended. Source: gov.uk; audit 2026-09-23
National Insurance upper earnings limit	50,270	gov.uk	Effective 2026-04-06Unchanged for 2027/28: NI thresholds are frozen until 5 Apr 2031 (Budget 2025), so the row is now open-ended. Source: gov.uk; audit 2026-09-23
Class 1 NI main rate	0.08	gov.uk	Effective 2026-04-06Rate set in statute with no change announced for 2027/28, so the row is now open-ended. Source: gov.uk National Insurance rates; audit 2026-09-23
Class 1 NI upper rate (above the upper earnings limit)	0.02	gov.uk	Effective 2026-04-06Rate set in statute with no change announced for 2027/28, so the row is now open-ended. Source: gov.uk National Insurance rates; audit 2026-09-23

We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.

The formula

net pay rise = take-home(current salary + rise) − take-home(current salary); tax and NI on rise = gross rise − net pay rise

How it works

It works out your take-home pay at your current salary and again at your salary plus the rise, using the 2026/27 Income Tax bands and National Insurance thresholds, then subtracts one from the other. The difference is what you truly gain; the rest is Income Tax and NI on the extra earnings.

Where it is used

Deciding whether a pay-rise offer is worth negotiating harder
Seeing the real cash impact when a rise pushes you into the higher-rate band
Budgeting the extra monthly take-home before it lands

Worked example

A £3,000.00 rise on a £40,000.00 salary adds only … to your take-home pay — … goes to Income Tax and National Insurance, leaving a new take-home of ….

A pay rise never reaches your account in full. Income Tax and National Insurance take part of every extra pound, and the share can jump if the rise pushes part of your income into a higher band. This calculator applies the 2026/27 rules to your current salary and proposed increase, and shows the net rise you keep, the tax and National Insurance taken from it and your new annual take-home pay.

How a pay rise is taxed

A pay rise is taxed at your marginal rate, the rate on the top slice of your income, not an average across everything you earn. If the whole rise sits inside the basic rate band, it is taxed at 20% plus 8% National Insurance, so you keep 72p of each extra pound. If it takes you above the basic rate limit of £50,270, the part above that line is taxed at 40%, while National Insurance on it drops to 2%. The calculator works out your take-home with and without the rise and compares the two, so it handles a rise that straddles a band automatically.

The National Insurance twist

Income Tax rates rise as you earn more, but National Insurance falls above the upper earnings limit of £50,270, from 8% to 2%. So the top part of a rise that crosses £50,270 faces 40% Income Tax but only 2% National Insurance, a combined 42% rather than the 28% a basic rate earner pays. That is why a rise across that threshold delivers less than people expect.

What the Personal Allowance taper does

Above £100,000 you lose £1 of tax-free Personal Allowance for every £2 of income. That creates an effective 60% Income Tax rate between £100,000 and £125,140, because each extra pound is taxed and also removes 50p of allowance that then becomes taxable. A pay rise in this band is taxed especially hard, and the calculator includes the taper rather than assuming a flat 40%.

A worked example

You earn £40,000 and are offered a £3,000 rise. Take-home before the rise is £32,319.60; after it, on £43,000, it is £34,479.60. You gain £2,160, and £840 goes in Income Tax and National Insurance. The whole rise stays in the basic rate band, so you keep 72%. A £5,000 rise on a £48,000 salary crosses £50,270, and the share you keep falls to about 64% as part of it meets the higher rate.

How to use the calculator

Enter your current annual salary and the gross annual pay rise. The result shows the net rise you keep, the gross rise, the tax and National Insurance on it and your new annual take-home pay. Try a few amounts to see where the bands start to bite and how much of a larger offer you would really keep.

Assumptions and limitations

This is a planning estimate. It uses the 2026/27 Income Tax bands and National Insurance thresholds and rates, stored as parameters sourced from gov.uk and reviewed each tax year. It models Income Tax and employee Class 1 National Insurance with the standard Personal Allowance. It does not include student loan repayments, pension contributions, salary sacrifice, Scottish Income Tax bands or benefits in kind, all of which change your actual take-home. Check current gov.uk guidance or speak to an accountant before making decisions.

About This Pay Rise Tax Calculator

Use this pay rise Tax calculator to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.

Tax year 2026

Frequently asked questions

How much of my pay rise do I actually keep?

Most basic rate earners keep about 72p of every extra pound, because 20p goes in Income Tax and 8p in National Insurance. In the higher rate band you keep about 58p, since 40p is Income Tax and 2p National Insurance. The exact figure depends on where your rise sits against the bands, which is what the calculator works out.

Why did a pay rise push me into a higher tax band?

Only the part of your income above the basic rate limit is taxed at 40%, not your whole salary. A rise that crosses the threshold is taxed more heavily on the part above it, while earnings below keep their lower rates. You are always better off in cash after a rise; you just keep a smaller share of the top slice.

Does National Insurance change when I get a pay rise?

Yes. It is 8% on earnings between the primary threshold and the upper earnings limit and 2% above it. A rise within the main band adds National Insurance at 8%, while a rise above the upper earnings limit is charged 2%, so National Insurance on the extra falls once you pass that point.

Is the tax on a pay rise the same as tax on a bonus?

The annual tax and National Insurance are worked out the same way, because both add to your taxable pay for the year. The difference is timing: a one-off bonus can look over-taxed in the month it is paid, but it usually evens out across the tax year.

Does this calculator include student loan or pension deductions?

No. It models Income Tax and National Insurance only, using the 2026/27 bands and thresholds. Student loan repayments, workplace pension contributions and salary sacrifice all change your take-home separately.

About the author

Written and reviewed by

Taha Kheirandish

Economics student and independent researcher

Taha Kheirandish reads tax codes the way other people read maps — to find out where a system actually leads, not where it claims to go.

He is an economics student, and his work here is comparative by design. A pension deferral bonus in Quebec, a commuting allowance in Germany, a rent-increase ceiling in the Netherlands: each is a decision a government made about how money should move, and each reads differently once you set it beside eight others. He builds and checks these calculators across nine markets from primary sources — the regulation rather than a summary of it, the ministry’s own circular rather than a news item quoting it.

That is the editorial standard of the site as well as his habit. Every rate, threshold and bracket here carries the document it was read from and the date it takes effect, and gets re-checked when the law moves rather than when someone happens to notice.

He is a researcher, not a licensed adviser, and nothing on this site is personal financial advice. It is arithmetic done carefully with its sources shown — so that you can check it, and take it to someone who is.

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