Pay Rise Calculator

A pay rise always increases take-home pay, but tax, NI and student loans take 28%–71% of the extra depending on your band.

Updated 2026-10-03 · 2026/27 HMRC rates

Extra take-home pay per month£76.80New salary £33,280 (+£1,280). You keep 72% of the rise.

Before
After

Gross

£32,000

£33,280

Take-home

£26,560

£27,481

Tax + NI

£5,440

£5,799

Your result is ready

Key facts

The personal allowance stays at £12,570 in 2026/27 and is reduced by £1 for every £2 of adjusted net income over £100,000, so it is gone entirely at £125,140 (HMRC income tax rates and allowances).
In England, Wales and Northern Ireland, 2026/27 income tax is 20% on the first £37,700 of taxable income, 40% up to £125,140 and 45% above that (HMRC rates and thresholds for employers 2026 to 2027).
Scotland has six bands in 2026/27: 19% starter on the first £3,967 of taxable income, 20% basic to £16,956, 21% intermediate to £31,092, 42% higher to £62,430, 45% advanced to £125,140 and 48% top above that (HMRC rates and thresholds for employers 2026 to 2027).
Budget 2025 extended the freeze on income tax thresholds and the equivalent employee and self-employed National Insurance thresholds for a further three years, from April 2028 to April 2031 (HM Treasury Budget 2025).
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% above that in 2026/27 (HMRC rates and thresholds for employers 2026 to 2027).
Employers pay 15% National Insurance on earnings above the £5,000 secondary threshold, and eligible employers can claim an Employment Allowance of £10,500 (HMRC rates and thresholds for employers 2026 to 2027).
Self-employed people pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above that; voluntary Class 2 costs £3.65 a week if profits are below £7,105 (GOV.UK self-employed National Insurance rates).
Dividend tax rose by 2 percentage points from April 2026: the basic rate is now 10.75% and the higher rate 35.75%, while the additional rate stays at 39.35% and the dividend allowance stays at £500 (GOV.UK tax on dividends).

NHS pay rise calculator

How much of a pay rise you actually keep

The share of a pay rise you keep depends on the band the extra money lands in, not on your whole salary. Your combined marginal rate of income tax, National Insurance and student loan decides it. The table shows the 2026/27 rates for someone outside Scotland, with the amount kept from each extra £1,000 of gross pay.

Salary the rise lands in	Deductions on the extra £1	Kept from £1,000
£12,570 to £50,270	28%	£720
Same, repaying a Plan 2 loan	37%	£630
£50,270 to £100,000	42%	£580
£100,000 to £125,140	62%	£380
Over £125,140	47%	£530

Worked example: a 3% rise at three salary levels

A 3% rise is worth very different amounts in your bank account depending on where you start. These figures use the calculator's engine with no pension or student loan.

£25,000 to £25,750: gross pay rises by £750, take-home by £540 a year (£45.00 a month), so you keep 72% of the rise.
£45,000 to £46,350: gross pay rises by £1,350, take-home by £972 a year (£81.00 a month), so you keep 72% of the rise.
£105,000 to £108,150: gross pay rises by £3,150, take-home by £1,197 a year (£99.75 a month), so you keep 38% of the rise.

Thresholds where a rise is worth less

Watch for these points, where the effective rate on extra pay rises sharply.

£60,000 to £80,000: if you or your partner claim Child Benefit, 1% is clawed back for every £200 of adjusted net income. With two children that adds roughly 12% to your marginal rate across the band.
£100,000: the Personal Allowance starts to fall, creating the effective 60% income tax band.
Student loan thresholds: once pay passes your plan threshold, 9% of everything above it goes to repayments (6% for a Postgraduate Loan).
Universal Credit: your payment falls by 55p for every £1 you earn above any work allowance, on top of tax and NI. A rise still leaves you better off, but by much less than the gross figure.
Pension contributions set as a percentage rise automatically with your salary, so part of the rise goes into your pot rather than your pay.

Is it a real-terms pay rise?

A rise is only a real-terms increase if it beats inflation over the same period. The quick check is: (1 + pay rise) ÷ (1 + inflation) − 1. With an illustrative 4% rise and 3% inflation, real pay grows by about 0.97%, not 1%. Use the Consumer Prices Index for the 12 months before your rise, which the Office for National Statistics publishes monthly.

Frozen tax thresholds make the real gain smaller still. The Personal Allowance and higher-rate threshold are frozen until April 2031 under Budget 2025, so as your pay rises with inflation more of it is taxed at 20% and 40%. This is sometimes called fiscal drag.

When the rise arrives as back pay

Public-sector awards and some private settlements are often agreed late and backdated. Arrears are taxed and NI'd in the month they are paid, so that payslip can show higher deductions than usual. Income tax normally evens out across the year under a cumulative tax code. NI and student loan deductions do not, because they are calculated on each pay period. The NHS pay rise calculator shows this for Agenda for Change staff.

Frequently asked questions

Can a pay rise leave me worse off?

Not in take-home pay. It can affect Child Benefit (above £60,000) and the Personal Allowance (above £100,000), which raise the effective rate on the extra.

How much is a 5% pay rise on £40,000 after tax?

Gross pay rises by £2,000 to £42,000. Outside Scotland, with no pension or student loan, take-home rises by about £1,440 a year, or £120.00 a month.

Does my pension contribution go up with a pay rise?

Yes, if it is set as a percentage of salary. Your employer contribution usually rises too, which is part of the value of the rise.

How does a pay rise affect Universal Credit?

Universal Credit falls by 55p for each extra £1 of earnings above your work allowance, so you keep less of a rise than tax and NI alone would suggest.

Will a pay rise increase my student loan repayments?

Yes, if your pay is above your plan threshold. Plans 1, 2, 4 and 5 take 9% of everything above the threshold, so a £1,000 rise adds £90 a year to repayments.

Should I ask for a pay rise as pension instead?

Above £100,000 or £60,000 with children, putting the rise into your pension through salary sacrifice can save more than 60% in tax and charges. Your employer must agree and change your contract.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.