UK Salary Increase Calculator (Real Take-Home)
A 5% pay rise often delivers less than 5% in your bank account — some of the rise crosses tax bands. Type your current salary and the % rise to see the real net effect.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
This is the calculator most UK pay-rise calculators don't ship: the actual take-home difference. It applies 2026/27 income tax bands and Class 1 NI to both the old and new gross salary, then shows you the net change — in pounds and as a percentage of your previous net pay.
How it works. Computes take-home for both the current and post-rise salary using 2026/27 PAYE bands and Class 1 NIC, then reports the net difference. Ignores student loan, pension contributions, benefits-in-kind, and Scottish tax bands.
Worked examples
£30,000 + 5% = £31,500 gross. Net up £1,036/yr (4.16% real rise).
£50,000 + 5% = £52,500 gross. Net up £1,350/yr (3.56%) — the rise spans the 40% threshold.
£100,000 + 10% = £110,000 gross. Net up only £4,000/yr (~5.92% real) — the personal allowance taper means your effective rate is 60% on the new slice.
£60,000 + 8.33% = £65,000 gross. Net up around £4,000/yr (~5.7%) — pure 40%-band slice.
Sources:
HMRC Income Tax rates 2026/27 · HMRC NI rates 2026/27
· retrieved 2026-05-12.
Frequently asked questions
Why is my real pay rise smaller than my pay rise percentage?
Because UK tax is tiered. A pound earned in the higher-rate band is taxed at 40% income tax + 2% NI = 42%, plus possibly student loan and reduced pension contribution income. So a marginal pound at higher rate keeps you 58p; in the basic rate band you'd keep 72p.
What is the 60% tax trap?
Between £100k and £125,140, the personal allowance tapers by £1 for every £2 over £100k. Combined with the 40% higher rate this gives an effective 60% marginal rate — plus 2% NI = 62%. A pay rise from £100k to £105k therefore loses around £3,100 to taper-related tax. Use the marginal-vs-effective calculator to visualise this.
Should I salary-sacrifice my pay rise into pension?
Often financially efficient if you're a higher-rate payer or in the £100k–£125k taper zone. £1 sacrificed is worth ~58p take-home but ~£1.40 in pension (40% tax relief) and avoids NI. Check with a qualified accountant or tax adviser or IFA — the calculator above is a guide only.
Why doesn't my rise show as a clean number?
Because the tax + NI maths combines tiered bands — round numbers in gross become non-round numbers in net. The exact figure depends where in the tax bands your rise sits.