Pay Rise After Tax Calculator UK 2025/26

Pay rise after tax calculator UK 2025/26 — see your real take-home increase from a £1k-£10k pay rise. Watch out for tax

Quick answer: A £5,000 pay rise from £45k to £50k gives you only £3,400 extra take-home (68%) — basic rate. From £55k to £60k just £2,900 extra (58%) — higher rate. From £100k to £105k only £1,500 extra (30%) — PA taper trap.
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

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A pay rise looks great until tax takes its share. This calculator shows your REAL take-home increase from any salary increase — including the brutal "PA taper trap" between £100k-£125k where you lose 60-62% to tax+NI on every extra pound.

How pay rise after tax calculator works in 2025/26

Effective marginal rate (tax + NI on every £1 of pay rise) by income:

Salary bandMarginal rateTake-home of £1 rise
£0-£12,5700%100p
£12,570-£50,27028% (20% + 8%)72p
£50,270-£100,00042% (40% + 2%)58p
£100,000-£125,14062% (40% + 2% + PA taper)38p
£125,140-£150,000+47% (45% + 2%)53p

The £100k-£125k taper trap: For every £2 earned above £100k you lose £1 of Personal Allowance. So a £1 pay rise increases taxable income by £1.50 — taxed at 40% = 60p, plus 2% NI = 62p. You take home only 38p of every extra £.

This creates absurd situations where someone at £125,140 (PA gone) takes home MORE per extra £ than someone at £105,000. Common solutions:

  • Salary sacrifice into pension — drops gross below £100k, restoring full PA. £25k sacrifice on £125k restores £12,570 PA worth £5,028 (40% × £12,570).
  • Charitable giving (Gift Aid) — extends basic rate band, can pull income out of taper
  • Spousal income shifting — if married couple, ensure higher earner uses sal sac

Worked example: £35k → £40k (basic rate)

Old take-home £28,719.60. New £32,319.60. Extra £3,600 from £5k rise = 72% kept. Decent return.

Gross: £40,000 → Take-home: £32,319.60/year (£2,693.30/month)

Worked example: £55k → £60k (higher rate)

Old take-home £42,557.40. New £45,357.40. Extra £2,800 from £5k rise = 56% kept (effectively 58% marginal).

Gross: £60,000 → Take-home: £45,357.40/year (£3,779.78/month)

Worked example: £100k → £105k (PA TAPER TRAP!)

Old £68,557.40. New £70,167.40. Extra only £1,610 from £5k rise = 32% kept. Tax+NI takes £3,390 of every £5k. Worse than 45% additional rate.

Gross: £105,000 → Take-home: £70,167.40/year (£5,847.28/month)

Frequently asked questions

Why is the £100k-£125k tax rate so high?
Because Personal Allowance tapers at £1 lost per £2 over £100k. A £1 rise creates £1.50 extra taxable income (your £1 + £0.50 lost PA). At 40%, that's 60p tax. Plus 2% NI = 62%. Only 38% reaches you.
How can I avoid the PA taper trap?
Most common: pension salary sacrifice. Sacrificing £25,140 on a £125,140 salary drops you to £100k — PA fully restored, plus the £25k pension contribution saves 62% (£15,587). Net cost about £9,553 for £25k pension growth.
Is a bonus taxed differently from salary?
No — bonus is taxed at your marginal rate same as salary. The "bonus tax shock" people feel is when a bonus pushes them temporarily into a higher band; PAYE corrects this over remaining months. By year-end the figure averages out.
Should I refuse a pay rise that pushes me into PA taper?
Nobody refuses — instead use salary sacrifice. £100k base + £10k pension salary sacrifice = same tax position as £100k base. Or use it as opportunity to top up pension dramatically (60-62% effective relief is unmatched anywhere).
Does the calculator account for student loan?
Base output doesn't. Add: Plan 1 9% above £24,990, Plan 2 9% above £28,470, Plan 4 9% above £31,395, Plan 5 9% above £25,000. Postgrad 6% above £21,000. So a £40-£50k rise sees an extra ~£900 student loan deduction across the rise.
How does pay rise affect my pension contribution?
If you're auto-enrolled at 5% on qualifying earnings, every £1 rise adds 5p × (£1 above £6,240 to £50,270) to your pension. £5k rise from £45k to £50k = ~£250 extra annual pension. Already accounted for in your net figures.
What about Scottish pay rises?
Same band-creep concept but with 6 Scottish bands. Crossing the higher rate (£43,662 in Scotland) is a 21%→42% jump — bigger leap than England's 20%→40%. Top rate 48% (vs England 45%) bites at £125,140+.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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