How much of a pay rise do I keep?

It depends on the band the rise lands in. In 2026/27, in England, Wales and Northern Ireland, pay between £12,570 and £50,270 carries 20% income tax and 8% National Insurance, so 72% of a rise is kept. Above £50,270 it is 40% tax and 2% National Insurance, so 58% is kept. A £1,500 rise on £30,000 adds £1,080 a year to take-home pay.

Does a pay rise push all my income into a higher tax band?

No. Each rate applies only to the slice of pay inside its band. A rise that crosses £50,270 is taxed at 40% on the part above it; the pay below it is taxed as before. Take-home pay never falls because of a rise on income tax and National Insurance alone.

What happens to a pay rise above £100,000?

Between £100,000 and £125,140 the personal allowance falls by £0.50 for every pound of income, so each extra pound is taxed at 40% and also brings £0.50 more into tax. The effect is 60% income tax on that slice, plus 2% National Insurance. The tool names this threshold when a rise crosses it.

Does a pay rise increase student loan repayments?

Yes, once pay is above the plan's threshold. A Plan 2 loan takes 9% of pay above £29,385 in 2026/27, so 9% of any rise above that goes to the loan on top of tax and National Insurance. Choose the plan in the form to include it.

Why is the share I keep different in Scotland?

Scotland sets its own income tax bands and rates for pay, with more bands than the rest of the UK. National Insurance and student loan rules are the same. Choose Scotland in the form to use the Scottish bands.

Calculators

Pay rise calculator

Tax year 2026/27, for England and Northern Ireland, Scotland, Wales. Shows what a rise adds to take-home pay a year and a month, the share of the rise you keep, and any threshold it crosses.

Results update as you type. Your inputs are kept in this browser and are never sent anywhere.

Extra take-home pay

£1,080a year

A month: £90
Share of the rise kept: 72%
New take-home a month: £2,183

The rise crosses no threshold. The next one above the new salary is the higher rate threshold and the National Insurance upper earnings limit (£50,270).

Under 2027/28 as announced so far, the same inputs give the same extra take-home pay, £1,080.00. None of the rules this result used is set to change.

The working

What a rise from £30,000 to £31,500 adds to take-home pay in 2026/27
Line	Rate	On	A year	Source
			£30,000.00
Take-home pay on £30,000.00 is £25,119.60 a year.
	5%	£30,000.00	£1,500.00
£30,000.00 × 5% = £1,500.00, making the new salary £31,500.00.
	20%	£1,500.00	−£300.00	gov.uk
Income tax on £30,000.00 is £3,486.00; on £31,500.00 it is £3,786.00. The difference is £300.00. Checked 7 November 2026, in force.
	8%	£1,500.00	−£120.00	gov.uk
National Insurance on £30,000.00 is £1,394.40; on £31,500.00 it is £1,514.40. The difference is £120.00. Checked 9 November 2026, in force.
	72%	£1,500.00	£1,080.00
£26,199.60 − £25,119.60 = £1,080.00 a year, £90.00 a month. That is 72% of the rise.

How this is calculated

Take-home pay now. Income tax, National Insurance and any student loan repayment on the current salary.
Take-home pay after the rise. The same on the new salary, or on the current salary plus the percentage.
The difference. Extra take-home pay a year, divided by twelve for a month, and as a share of the rise.
Thresholds crossed. Any threshold between the two salaries: a tax band, the National Insurance upper earnings limit of £50,270, a student loan threshold, the start of the child benefit charge, and the allowance taper from £100,000.

The rounding conventions are listed in the methodology, and the formulas run from the open rules file for 2026/27.

Rules used

Tax year: 2026/27 (6 April 2026 to 5 April 2027)
Nation: England and Northern Ireland
Figures: Checked between 7 November 2026 and 9 November 2026. Status: in force.
Next scheduled change: 6 April 2027
Every figure: Rates and allowances for 2026/27, each with its source and the date it was checked.
Sources used: Income tax rates, checked 7 November 2026
National insurance rates letters, checked 9 November 2026

What changes on 6 April 2027

None of the figures this result uses changes on that date, as far as 2027/28 has been announced.

Not yet set for 2027/28: Scottish income tax bands and rates; Plan 1 threshold; Plan 4 threshold; Plan 5 threshold; Postgraduate loan threshold.

Switch the tax year in the form to see the result under 2027/28 as announced so far. The Budget 2026 page lists every measure, including those that do not touch this result.

What this does not do. It assumes one job on the standard tax code and does not model pension contributions, benefits in kind, the High Income Child Benefit Charge, tax-free childcare or Universal Credit, each of which can change what a rise is worth. It never suggests whether to accept an offer.

Questions people ask

How much of a pay rise do I keep?: It depends on the band the rise lands in. In 2026/27, in England, Wales and Northern Ireland, pay between £12,570 and £50,270 carries 20% income tax and 8% National Insurance, so 72% of a rise is kept. Above £50,270 it is 40% tax and 2% National Insurance, so 58% is kept. A £1,500 rise on £30,000 adds £1,080 a year to take-home pay.
Does a pay rise push all my income into a higher tax band?: No. Each rate applies only to the slice of pay inside its band. A rise that crosses £50,270 is taxed at 40% on the part above it; the pay below it is taxed as before. Take-home pay never falls because of a rise on income tax and National Insurance alone.
What happens to a pay rise above £100,000?: Between £100,000 and £125,140 the personal allowance falls by £0.50 for every pound of income, so each extra pound is taxed at 40% and also brings £0.50 more into tax. The effect is 60% income tax on that slice, plus 2% National Insurance. The tool names this threshold when a rise crosses it.
Does a pay rise increase student loan repayments?: Yes, once pay is above the plan's threshold. A Plan 2 loan takes 9% of pay above £29,385 in 2026/27, so 9% of any rise above that goes to the loan on top of tax and National Insurance. Choose the plan in the form to include it.
Why is the share I keep different in Scotland?: Scotland sets its own income tax bands and rates for pay, with more bands than the rest of the UK. National Insurance and student loan rules are the same. Choose Scotland in the form to use the Scottish bands.

Keep this result

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