Pay Rise Calculator
Find out what a pay rise is really worth each month once Income Tax, National Insurance, pension and student loan have taken their share.
Your pay rise
Why a rise is smaller after tax
Every extra pound you earn is taxed at your marginal rate, the rate on the top slice of your income. For most people in England, Wales and Northern Ireland that means:
| Salary range | Tax + NI on each extra £1 | You keep |
|---|---|---|
| £12,571 to £50,270 | 20% + 8% = 28% | 72p |
| £50,271 to £100,000 | 40% + 2% = 42% | 58p |
| £100,001 to £125,140 | 60% + 2% = 62% | 38p |
| Over £125,140 | 45% + 2% = 47% | 53p |
Add 9% if you repay a student loan, and whatever percentage goes into your pension, and the share you keep falls further.
Worked example: 5% rise on £40,000
The rise is £2,000 a year. Income Tax takes £400 and National Insurance £160, leaving £1,440. With a Plan 2 student loan, another £180 goes in repayments, so you keep £1,260 a year, or £105 a month.
Want the full picture of your pay? Use the take-home pay calculator.
Estimates use 2026/27 rates and the standard tax code. Bonuses, benefits in kind and tax code adjustments can change the result.
Sources
Figures are checked against these official sources. Last reviewed 7 November 2026.
Common questions
How much of a pay rise do I actually keep?
A basic-rate taxpayer in England keeps about 72p of every extra £1: 20% goes in Income Tax and 8% in National Insurance. Student loan repayments and pension contributions can take a further slice.
What does a 3% pay rise on £30,000 come to?
A 3% rise adds £900 a year before tax. After 20% tax and 8% NI you keep about £648 a year, or £54 a month, if you have no pension or student loan.
Can a pay rise push me into a higher tax band?
Yes, but only the part of your income above £50,270 (£43,662 in Scotland) is taxed at the higher rate. You never take home less overall because of a rise.
What is the 60% tax trap?
Between £100,000 and £125,140 your tax-free personal allowance shrinks by £1 for every £2 you earn, so the effective tax rate on that slice is 60% plus NI. Extra pension contributions can bring your income back under £100,000.
Is my pay rise above inflation?
Compare the percentage rise with the latest CPI inflation figure from the Office for National Statistics. If your rise is lower, your pay is falling in real terms even though the number has gone up.