Pay rise after tax: how much will you actually get?
You keep less of a pay rise than the headline figure. A £3,000 rise on £30,000 adds about £2,160 a year to take-home pay, or £180 a month, because 20% Income Tax and 8% National Insurance come off the extra.
What you keep from common pay rises.
| Pay rise | Extra gross | Extra take-home a year | Extra a month | Kept per £1 |
|---|---|---|---|---|
| £25,000 → £26,000 | £1,000 | £720 | £60 | 72p |
| £30,000 → £31,500 | £1,500 | £1,080 | £90 | 72p |
| £30,000 → £33,000 | £3,000 | £2,160 | £180 | 72p |
| £40,000 → £44,000 | £4,000 | £2,880 | £240 | 72p |
| £48,000 → £52,000 | £4,000 | £2,638 | £220 | 66p |
| £50,000 → £55,000 | £5,000 | £2,938 | £245 | 59p |
| £100,000 → £110,000 | £10,000 | £3,800 | £317 | 38p |
2026/27 rates for England, Wales and Northern Ireland, no pension or student loan.
How much of each extra pound you keep.
| Your salary | Deductions on extra pay | You keep |
|---|---|---|
| £12,570 to £50,270 | 20% tax + 8% NI | 72p |
| £50,270 to £100,000 | 40% tax + 2% NI | 58p |
| £100,000 to £125,140 | 60% effective tax + 2% NI | 38p |
| Over £125,140 | 45% tax + 2% NI | 53p |
A pay rise never reduces your take-home pay, because tax is charged in bands: only the money above each threshold is taxed at the higher rate. But a rise that crosses £50,270 or £100,000 is worth noticeably less than one below.
Student loans and pensions take a share too.
If you pay a percentage of salary into a workplace pension, that grows with your pay too. It is still your money, just saved for later.
Is your pay rise beating inflation?
If prices rise 3% and your pay rises 3%, you can buy the same as last year: a real-terms pay rise of zero. To be better off, your take-home pay needs to grow faster than your costs. Compare your percentage rise with the latest CPI inflation figure from the ONS.
Enter your current and new salary in the salary calculator, including pension and student loan, to see the exact monthly difference.
Pay rise FAQs
Can a pay rise put me in a worse position?
Not through Income Tax or National Insurance alone. It can affect means-tested benefits like Universal Credit, the High Income Child Benefit Charge (from £60,000) and funded childcare (lost above £100,000).
How do I ask for a pay rise?
Gather evidence: what you have achieved, extra responsibilities you have taken on, and what similar jobs pay. Ask for a specific figure.
When will I see it on my payslip?
From the next payroll after the change takes effect. Backdated rises are usually paid as a lump sum, which can be taxed at a higher rate in that one month but evens out over the tax year.
GOV.UK Income Tax rates · ONS: CPI inflation. Figures are worked examples for planning, not financial advice.