A pay rise is never worth what the letter says — tax, National Insurance and the £100,000 trap take their slice first. See what yours is worth per month, in your bank, for 2026/27.
Workplace pension taken from your pay before tax (salary sacrifice). Leave at 0% to compare headline pay.
It depends entirely on which tax band the rise lands in. A basic-rate taxpayer keeps 72p of each extra pound (20% tax + 8% NI). In the higher band it's 58p (40% + 2%). And between £100,000 and £125,140 — where your Personal Allowance is being withdrawn — you keep barely 38p of each pound: the famous £100,000 tax trap.
A rise can also push you across a line you didn't expect: over £100,000 you lose Tax-Free Childcare and the 30 funded hours as well as your allowance; over £125,140 the Personal Allowance is gone entirely. If your rise lands just over a threshold, a pension contribution can pull you back under it — try adding one above and watch the monthly gain change.
Comparing offers? Run the full salary through the UK tax calculator for the complete picture, including student loans.
A basic-rate taxpayer loses 28% (20% income tax + 8% National Insurance), keeping 72p per £1. A higher-rate taxpayer loses 42%, keeping 58p. Between £100,000 and £125,140 the effective rate is about 62%, so you keep only ~38p per £1.
No. On a £45,000 salary, a rise to £50,000 adds £3,600 a year to your take-home — £300 a month — because the whole rise sits in the basic band. The same £5,000 rise at £105,000 adds only about £1,900 a year.
Usually because part of it crossed into a higher band, or into the £100,000–£125,140 zone where your Personal Allowance is withdrawn at an effective ~62% rate. Student loan repayments (9% above your plan threshold) take a further slice if you have one.
Yes, near a threshold. Contributing enough to stay under £100,000 preserves your full Personal Allowance (and childcare support), which can make a smaller gross rise worth more in your pocket than a bigger one.