Pay rise calculator
A pay rise is taxed at your marginal rate rather than your average rate, so an estimated 20% income tax and 8% National Insurance is deducted from the basic-rate portion, per gov.uk's Income Tax rates. Above £50,270 the rate rises to 40%. This tool estimates the new take-home pay.
Why do you keep less than the headline pay rise?
A rise stacks on top of pay already taxed, so every extra pound is taxed at the marginal rate rather than the average rate. In the basic-rate band that is 20% income tax plus 8% National Insurance, as set out on gov.uk's Income Tax rates and National Insurance rates pages. Cross £50,270 and the slice above is taxed at 40% plus 2% National Insurance.
The average rate on the whole salary is lower than this, which is why a rise can feel disappointing. The figure that matters is the marginal rate on the new money, and that is what this tool applies.
What would you take home on an example pay rise?
On a £35,000 salary a 5% rise is £1,750 of extra gross pay. It stays inside the basic-rate band, so 20% income tax and 8% National Insurance come off, leaving an estimated £1,260 of take-home pay, an extra £105 a month. If the same rise pushed part of the pay over £50,270, that part would be taxed at 40% and the kept share would fall.
Common questions
How much of a pay rise do I actually keep?
On a £35,000 salary a 5% rise adds £1,750 gross, but only about £1,260 reaches your account after tax and National Insurance. That is roughly 72.0% of the rise, or £105 more a month.
Why do I keep so little of my pay rise?
A rise is added on top of income you are already taxed on, so it is taxed at your marginal rate, not your average rate. In the basic band that is 20% tax plus 8% National Insurance, so you keep about 72p in the pound. In the 40% band you keep about 58p.
Can a pay rise push me into a higher tax band?
Only the part of the rise above £50,270 is taxed at 40%, not your whole salary. You are never worse off overall from a rise, but the slice above the threshold is taxed more heavily, so the kept share drops.
What about the £100,000 trap?
Between £100,000 and £125,140 your personal allowance is withdrawn, which creates an effective 60% rate on that band. A rise landing there can be kept at barely 40p in the pound once National Insurance is added. Paying the rise into a pension can sidestep it.
Why do you keep less than the headline pay rise?
A pay rise is added on top of pay already taxed, so it is charged at the marginal rate rather than the average rate. In the basic band that is 20% income tax plus 8% National Insurance, under gov.uk's Income Tax rates and National Insurance rates pages. Above £50,270 the rate on the extra slice rises to 40%.
What would you take home on an example pay rise?
On a £35,000 salary a 5% rise adds £1,750 gross. It falls inside the basic-rate band, so 20% income tax and 8% National Insurance are deducted, leaving an estimated £1,260 of extra take-home pay, about £105 a month.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.