UK Pay Rise Calculator 2026/27

Worked examples (2026/27, England)

• £30,000 -> £33,000 (10%)
  +£2,160 a year
  +£180 a month - effective 28.0% deducted
• £45,000 -> £50,000
  +£3,600 a year
  +£300 a month - effective 28.0% deducted
• £55,000 -> £60,000
  +£2,900 a year
  +£242 a month - effective 42.0% deducted
• £95,000 -> £105,000 (crosses £100k)
  +£4,800 a year
  +£400 a month - effective 52.0% deducted
• £110,000 -> £120,000 (PA taper)
  +£3,800 a year
  +£317 a month - effective 62.0% deducted
• £130,000 -> £140,000 (additional rate)
  +£5,300 a year
  +£442 a month - effective 47.0% deducted

Frequently asked questions

How much of a UK pay rise do I actually keep?

Depends entirely on where your current salary and the rise sit relative to the tax band thresholds. A pay rise fully inside the basic-rate band (£12,570 to £50,270) keeps 72p per £1 raised after 20% IT + 8% NI. A rise fully inside the higher-rate band (£50,270 to £100,000) keeps 58p per £1 after 40% IT + 2% NI. A rise inside the £100,000-£125,140 Personal Allowance taper keeps only 38p per £1 - the highest effective marginal rate in the UK income-tax structure.

What is the effective tax rate on a pay rise?

The effective tax rate on a pay rise is the IT and NI taken from each marginal pound of the rise. It is the headline marginal rate where the rise lands (28%, 42%, or 47%) unless the rise spans a threshold, in which case it is a weighted blend across the bands. The calculator computes the exact figure for your inputs.

Why does my pay rise feel smaller than expected?

Two common reasons: (1) the rise crossed a band threshold so part of it is taxed at the next higher rate, and (2) PAYE may have used a cumulative method that estimated a full-year salary from the new monthly figure and over-withheld. The latter usually self-corrects across the remaining months.

Should I salary-sacrifice a pay rise into pension?

It is worth considering, especially if the rise pushes you into the £100k PA-taper band (62% effective marginal). Sacrificing the marginal pounds keeps the full uplift in your pension pot at zero Income Tax cost, vs receiving 38p per £1 as cash. The trade-off is liquidity - pension money is locked until age 57 (rising to 58 in 2028).

Does the rise affect my pension contribution amount?

If your pension is a fixed percentage of salary (common workplace schemes), the contribution automatically goes up with the rise. If your contribution is a fixed pound amount or you cap it, only the rise less your existing contribution increases. The pension uplift gets full tax relief at the marginal rate, often making the after-pension take-home delta smaller but the total comp delta larger.