Salary increase calculator UK
See exactly what a pay rise is worth after tax and National Insurance. 2025/26 rates.
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Frequently asked questions
How much of a pay rise do I actually take home in the UK?
If you are a basic-rate taxpayer (salary between £12,570 and £50,270), you take home roughly 68p from every extra £1 of gross salary. Income tax takes 20p and employee National Insurance takes 8p (on earnings above £12,570). If you are a higher-rate taxpayer (salary over £50,270), you take home roughly 58p per extra £1: 40p income tax and 2p NI. These are the 2025/26 rates.
How do I calculate a salary increase percentage?
Divide your new salary by your old salary, subtract 1 and multiply by 100. For example, rising from £30,000 to £32,000: (32,000 / 30,000 − 1) × 100 = 6.67%. To go the other way, multiply your current salary by the percentage increase: £30,000 × 0.05 = £1,500 increase to give £31,500.
Does a salary increase push me into a higher tax band?
Only the portion of your salary above a band threshold is taxed at the higher rate. If your current salary is £49,000 and you receive a £5,000 increase, £1,270 of the increase is taxed at 20% (basic rate) and £3,730 at 40% (higher rate). The calculator shows exactly how each pound of the increase is taxed.
What are the 2025/26 UK income tax rates?
Personal allowance: £12,570 (tax-free). Basic rate: 20% on income from £12,571 to £50,270. Higher rate: 40% on income from £50,271 to £125,140. Additional rate: 45% on income above £125,140. National Insurance for employees: 8% on earnings from £12,570 to £50,270, and 2% above that.