How much of a pay rise do I keep?

In England, Wales and Northern Ireland a basic-rate taxpayer keeps 72p of each extra pound (20% tax, 8% NI) and a higher-rate taxpayer keeps 58p (40% tax, 2% NI). A student loan takes another 9p over its threshold, and between £100,000 and £125,140 you keep only 38p.

Why does my take-home go up by less than my pay rise percentage?

Your rise is taxed at your highest rate, but your pay as a whole is taxed at a lower average rate because of the tax-free allowance and lower bands. So take-home grows by a smaller percentage than your salary, and with frozen thresholds you need a rise above inflation just to stand still.

What pay rise do I need to keep up with inflation?

Usually a little more than inflation itself. On £35,000 with 3.1% inflation you need about 3.5% to keep your take-home level with prices; with a Plan 2 student loan on £60,000 you need about 4.5%. The calculator works out your figure.

Can a pay rise leave me worse off?

Not on income tax alone, because no band takes more than 100% of the extra pay. But crossing £100,000 can cost a family Tax-Free Childcare and funded childcare hours worth more than the rise, and a rise below inflation leaves your take-home buying less than before.

Does a pay rise affect Child Benefit?

Only if your adjusted net income goes over £60,000. Above that you repay 1% of the Child Benefit for every £200 over, through the High Income Child Benefit Charge, and all of it once your income reaches £80,000. Pension contributions reduce adjusted net income.

Pay Rise Calculator

What a UK pay rise really adds to your take-home after tax, NI, student loan and pension, and whether it beats inflation.

Your pay rise

Salary now, before tax

Pay rise

£35,000 to £36,400: +£1,400 a year

Inflation to beat

Latest 12-month rates from the ONS (Aug 2026).

I live in Scotland

Uses the Scottish income tax bands

Repayment plan

Postgraduate loan

6% of earnings above £21,000, on top of any plan

Your contribution

A percentage pension grows with your pay, so part of every rise goes into your pot. That part is still yours, just later.

Children it is claimed for

If you are the higher earner in your household, you pay back 1% of the Child Benefit for every £200 of income over £60,000, and all of it from £80,000.

Extra take-home

+£84/mo

+£1,008 a year from a £1,400 rise · you keep 72p of every £1

2026/27England, Wales and NI rates

Take-home a month

£2,477

was £2,393

After inflation

+£10

a month, in today's prices (0.4%)

Rise to stand still

3.5%

£1,237 a year keeps take-home level with 3.1%

You keep£1,008/yr72.0%

Income tax£280/yr20.0%

National Insurance£112/yr8.0%

After 3.1% inflation your take-home still buys £118 a year more than it does now. To stand still you need £1,237 (3.5%), more than 3.1% of your salary, because deductions take a slice of every rise while frozen thresholds stay put.

Before and after

A year	Now	After the rise	Change
Salary	£35,000	£36,400	+£1,400
Income tax	−£4,486	−£4,766	−£280
National Insurance	−£1,794	−£1,906	−£112
Take-home a year	£28,720	£29,728	+£1,008
Take-home a month	£2,393	£2,477	+£84

Annual figures on the standard tax code. Child Benefit is shown as if paid to your household and the charge as if you are the higher earner.

See the new salary in the UK Salary Calculator

Extra a month+£84

This calculator shows how much of a UK pay rise actually reaches your bank account, and whether it keeps up with prices. Enter your salary and the rise as a percentage, an amount or your new salary. Student loans, a workplace pension and Child Benefit are under the options, because each of them takes its own slice of a rise.

A 4% rise does not give you 4% more to spend. Every extra pound is taxed at your top rate, not your average rate, so a basic-rate taxpayer keeps 72p of each extra pound and a higher-rate taxpayer 58p. Your take-home therefore grows more slowly than your salary.

Where a pay rise goes

Your existing salary already uses up your tax-free allowance and lower bands, so a rise is stacked on top and taxed at the highest rates you reach. For 2026/27 in England, Wales and Northern Ireland that means:

Up to £50,270: 20% income tax and 8% NI, so you keep 72p in the pound.
£50,270 to £100,000: 40% income tax and 2% NI, so you keep 58p.
£100,000 to £125,140: the personal allowance tapers away, an effective 60% income tax rate plus 2% NI, so you keep 38p.
A student loan takes another 9p in the pound above its threshold (Plan 2: £29,385), and a postgraduate loan 6p more.
A percentage pension grows with your pay, so part of the rise goes into your pot. That part is still yours, just later.
Child Benefit is clawed back at 1% for every £200 of income over £60,000, so between £60,000 and £80,000 a rise also costs you some of the benefit.

Does your rise beat inflation?

The calculator grows this year's take-home by the inflation rate you choose, by default the latest CPI figure, and compares it with your take-home after the rise. If the new take-home is lower, the rise buys less than your pay does now.

The rise to stand still is the gross rise that keeps your take-home level with prices. It is nearly always higher than inflation itself. On £35,000 with 3.1% inflation you need a 3.53% rise, not 3.1%, because the tax thresholds are frozen and each extra pound is taxed at 28% while your pay as a whole is taxed at about 18%. On £60,000 with a Plan 2 loan you need 4.49%. This is what people mean by fiscal drag.

Thresholds worth knowing about

Some rises cost more than they look because they push you over a line. The calculator flags each of these when your rise crosses one:

£50,270: the higher rate starts (in Scotland the 42% rate starts at £43,663). A pension contribution taken from your salary pushes this point up.
£60,000: the High Income Child Benefit Charge starts, if you or your partner claim Child Benefit and you are the higher earner.
£100,000: the allowance taper starts, and families lose Tax-Free Childcare (worth up to £2,000 a child a year) and the funded childcare hours. Crossing £100,000 by a small amount can leave a family worse off overall. Paying the excess into a pension keeps your income below the line.

Worked examples (2026/27, England, 3.1% inflation)

No pension, standard tax code:

£30,000, 5% rise (£1,500): you keep £1,080, which is £301 a year more than inflation.
£35,000, 3.1% rise (£1,085): you keep £781, which is £109 a year less than inflation. A rise that matches inflation still leaves you worse off.
£40,000, 4% rise, Plan 2 loan: you keep £1,008 of £1,600 (63%), only £36 ahead of inflation.
£48,000 to £52,000: £2,638 of £4,000 (66%), because the top £1,730 is taxed at 40%.
£58,000 to £62,000, Child Benefit for two children: £2,086 of £4,000 (52%), after £234 of the benefit is clawed back.
£95,000 to £105,000: £4,800 of £10,000 (48%), before any lost childcare support.

What this calculator assumes

Both salaries go through the same engine as the UK Salary Calculator: annual figures on the standard tax code, without bonuses, benefits in kind or other salary sacrifice. Child Benefit is counted as household income, and the charge is applied as if you are the higher earner (if your partner earns more, the charge falls on them). It also assumes the tax year stays the same before and after the rise. For a rise that starts with a new tax year, choose that year at the top.

Frequently asked questions

How much of a pay rise do I keep?: In England, Wales and Northern Ireland a basic-rate taxpayer keeps 72p of each extra pound (20% tax, 8% NI) and a higher-rate taxpayer keeps 58p (40% tax, 2% NI). A student loan takes another 9p over its threshold, and between £100,000 and £125,140 you keep only 38p.
Why does my take-home go up by less than my pay rise percentage?: Your rise is taxed at your highest rate, but your pay as a whole is taxed at a lower average rate because of the tax-free allowance and lower bands. So take-home grows by a smaller percentage than your salary, and with frozen thresholds you need a rise above inflation just to stand still.
What pay rise do I need to keep up with inflation?: Usually a little more than inflation itself. On £35,000 with 3.1% inflation you need about 3.5% to keep your take-home level with prices; with a Plan 2 student loan on £60,000 you need about 4.5%. The calculator works out your figure.
Can a pay rise leave me worse off?: Not on income tax alone, because no band takes more than 100% of the extra pay. But crossing £100,000 can cost a family Tax-Free Childcare and funded childcare hours worth more than the rise, and a rise below inflation leaves your take-home buying less than before.
Does a pay rise affect Child Benefit?: Only if your adjusted net income goes over £60,000. Above that you repay 1% of the Child Benefit for every £200 over, through the High Income Child Benefit Charge, and all of it once your income reaches £80,000. Pension contributions reduce adjusted net income.