Enter two salaries and see the exact difference in monthly and annual take-home pay, with matched income tax, National Insurance, student loan and pension assumptions. Right now £50,000 leaves £900.00 more a month than £35,000 (£10,800.00 a year).
Updated for 2026/27 · Reviewed by James Whitfield · Methodology and assumptions
When you compare two salaries, only the difference between them changes, and it is taxed at your top rate. Between £12,570 and £50,270 you keep 72p of each extra £1 (20% income tax, 8% NI), so £40,000 against £45,000 is £300 a month more. From £50,270 to £100,000 you keep 58p (40% plus 2%), so £50,000 against £60,000 is about £486 a month more. Between £100,000 and £125,140 you keep only 38p.
Not on PAYE? Browse all 7 packs in the Tax Pack Library · £9.99
A £5,000 gross salary increase does not produce £5,000 more to spend each year. Because the UK income tax system is progressive, a pay rise pushes earnings further into higher marginal rate bands. At a salary of £40,000 in England, the marginal rate on extra earnings is 28% (20% income tax + 8% NI). It stays 28% up to £50,270, then rises to 42% (40% tax + 2% NI). Between £100,000 and £125,140 it reaches 62%, because every £2 earned removes £1 of personal allowance, creating an effective 60% income tax rate on that slice plus 2% NI.
This means that when you compare two offers, the monthly take-home difference is always smaller than the gross difference would suggest. A £45,000 offer versus a £40,000 offer is a £5,000 a year gross improvement, but the extra £5,000 is taxed at 28%, leaving £3,600 more a year net: £300 a month extra, not £417.
The comparison tool above applies the full 2026/27 PAYE calculation to both salaries using identical assumptions (same region, student loan plan and pension percentage), so the monthly delta shown is the real, after-tax difference.
The table below shows net monthly take-home for common salary pairs in England, using tax code 1257L, NI category A, no student loan and no pension contributions. Use the calculator above for your exact figures with real deduction settings.
| Offer A | A monthly net | Offer B | B monthly net | Extra per month |
|---|---|---|---|---|
| £30,000 | £2,093.30 | £35,000 | £2,393.30 | +£300.00 (72% kept) |
| £35,000 | £2,393.30 | £40,000 | £2,693.30 | +£300.00 (72% kept) |
| £40,000 | £2,693.30 | £45,000 | £2,993.30 | +£300.00 (72% kept) |
| £45,000 | £2,993.30 | £50,000 | £3,293.30 | +£300.00 (72% kept) |
| £50,000 | £3,293.30 | £60,000 | £3,779.78 | +£486.48 (58% kept) |
| £60,000 | £3,779.78 | £75,000 | £4,504.78 | +£725.00 (58% kept) |
| £75,000 | £4,504.78 | £100,000 | £5,713.12 | +£1,208.34 (58% kept) |
| £100,000 | £5,713.12 | £125,000 | £6,504.78 | +£791.66 (38% kept) |
Monthly take-home using 2026/27 England, Wales and Northern Ireland PAYE rates (tax code 1257L, NI category A, no student loan, no pension). Every £5,000 step below £50,270 adds the same £300 a month because it is all taxed at 28%. Steps above £50,270 keep 58%, and the £100,000 to £125,000 step keeps only 38% because of the personal allowance taper (62% effective marginal rate).
When comparing a new offer against your current salary, enter both gross figures with the same pension and student loan settings. The monthly delta is the actual cashflow change, which is what matters for budgeting. If the new role is in Scotland and your current role is in England, use different region settings for each — Scottish income tax is higher above £29,526 (21% intermediate rate) and much higher above £43,662 (42%), so the same gross salary produces a lower net in Scotland.
If you are asking for a pay rise, use the tool to calculate what monthly improvement you actually need. If you want an extra £300/month net, you typically need to ask for a larger gross figure than £3,600/year — because the extra earnings are taxed at your marginal rate. At a salary of £40,000, £300 a month net requires £5,000 a year gross (at a 28% marginal rate); above £50,270 the same £300 needs about £6,207 gross.
If a role offers different salaries depending on location (London vs regional, for example), enter the two offers with the same region to isolate the gross difference impact. If you are considering moving to Scotland for a role that pays the same salary as a comparable role in England, compare them with different region settings to understand the Scottish income tax premium.
Two offers with the same gross salary but different employer pension contributions are not equivalent. Enter both with their respective employee pension percentages to compare the take-home. Also note that salary sacrifice pension contributions save both Income Tax and NI on the contributed amount — an offer with a 5% salary sacrifice pension scheme may produce lower take-home than one without, but the pension pot difference compounds significantly over a career.
Enter both gross salaries with the same assumptions (region, student loan plan and pension) and compare the monthly take-home, not the gross figures. In 2026/27 a £5,000 rise anywhere between £12,570 and £50,270 adds £3,600 a year (£300 a month) after 20% income tax and 8% National Insurance.
It depends on your marginal rate. Between £12,570 and £50,270 you keep 72% (20% tax plus 8% NI). Between £50,270 and £100,000 you keep 58% (40% plus 2%). Between £100,000 and £125,140 you keep 38% because the personal allowance is withdrawn. Student loan repayments take another 9% above the plan threshold.
Because the extra salary is taxed at your highest rate. Moving from £50,000 to £60,000 adds £10,000 gross but about £5,838 net (£486 a month), because most of the rise is taxed at 40% income tax plus 2% NI.
The rates, thresholds and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC or GOV.UK page in a new tab.
Verified against published UK government guidance for 2026/27.