Will my tax code change with a pay rise?

Usually no, but if your income crosses £100,000 your personal allowance tapers, and HMRC may adjust your code.

How much extra will I actually take home?

Use the calculator above. The increase isn't linear — higher earnings mean higher marginal tax and NI.

What if my pay rise includes a bonus?

Enter your new base salary here. Use the Bonus Calculator separately for one-off payments.

Pay rise calculator

Pay Rise Calculator 2026/27

Enter your current and new salary to see exactly how much more you take home after a pay rise — including any jump into the 40% higher-rate tax band.

Your details

Current salary (£)

Your gross annual salary before the rise.

New salary (£)

Your gross annual salary after the rise.

Tax code

Usually found on your payslip, e.g. 1257L.

Pension contribution0%

Your results

Metric	Before	After	Change

Where your money goes — Before

Where your money goes — After

How Pay Rises Are Taxed

In the UK, pay rises are taxed at your marginal rate — the rate that applies to the next pound you earn. For most people that is 20% (basic rate). If your new salary takes you above £50,270, the portion above that threshold is taxed at 40% (higher rate).

National Insurance also changes: you pay 8% on earnings between £12,570 and £50,270, then 2% above £50,270. A pay rise can therefore push you into a lower NI rate on the marginal earnings while simultaneously hitting the higher income tax band.

This calculator shows you the exact before-and-after picture so you can see how much of your raise you actually keep.

Frequently asked questions

Does a pay rise always mean more take-home pay?

Yes, but the amount you keep depends on which tax bands the extra earnings fall into. If the rise pushes you into the 40% higher-rate band, a larger slice of the extra money goes to tax, so your take-home increases by less than the gross amount.

What is the 40% higher-rate tax threshold for 2026/27?

For the rest of the UK, the higher-rate threshold is £50,270 of taxable income. With a standard 1257L tax code that means any gross salary above £50,270 has the excess taxed at 40% instead of 20%. Scotland uses different bands.

Should I negotiate a bonus instead of a salary rise?

It depends on your situation. A one-off bonus is taxed in the year it is received and can push you into a higher band for that year only. A permanent salary rise increases your baseline take-home every year but may lock you into the higher-rate band permanently. Use this calculator to compare both scenarios.