Income Tax
The calculator estimates annual employment-income tax using the standard Personal Allowance, including its reduction at higher adjusted net income, and either the standard or Scottish bands.
2026/27 tax year · Pounds sterling
UK Pay Rise Calculator
Enter your current pay and proposed rise to compare gross pay with estimated take-home pay after Income Tax, employee National Insurance, workplace pension and selected student-loan deductions for 6 April 2026 to 5 April 2027.
£
%
Tax, pension and student loan settingsEngland · Monthly pay · No pension · No student loan
Starts from the standard 1257L basis. This is not an individual PAYE tax-code calculation, and the Personal Allowance taper still applies where relevant.
This affects National Insurance and student-loan period rounding.
Pension percentage is based on your full gross pay and excludes employer contributions. Relief at source is not supported; do not substitute net pay for it. A salary sacrifice cannot reduce cash earnings below the National Minimum Wage; this calculator does not test that limit. Student-loan results estimate payroll repayments, not balances, interest or payoff dates.
12 averages per year; not an exact payslip figure.
Results updated. New annual pay is £36,750.00; estimated annual take-home change is £1,259.96.
New annual pay
£36,750
+5.0% gross change
Annual take-home change
£1,260
after estimated 2026/27 deductions
Average monthly change
£105.00
12 averages per year
Gross pay rise kept
72%
after tax, NI, pension and selected loans
| Annual estimate | Before | After |
|---|---|---|
| Gross pay | £35,000.00 | £36,750.00 |
| Income Tax | -£4,486.00 | -£4,836.00 |
| Employee National Insurance | -£1,793.88 | -£1,933.92 |
| Workplace pension | -£0.00 | -£0.00 |
| Estimated take-home pay | £28,720.12 | £29,980.08 |
Hourly£0.65
Weekly£24.23
Fortnightly£48.46
Every four weeks£96.92
Monthly£105.00
Annual£1,259.96
Average changes under stable pay; not an exact payslip figure.
A £1,750 gross annual pay rise is estimated to add £1,260 to annual take-home pay. The largest increase among the selected deductions is Income Tax.
2026/27 planning assumptions
Assumes a full-year UK resident employee below State Pension age, one employer, stable employment pay, standard Personal Allowance rules and employee National Insurance category A. It excludes individual PAYE code adjustments, bonuses, benefits, multiple jobs, director NI, relief-at-source and NHS pensions, and Self Assessment. Results are estimates, not tax advice.
Planning estimate only. Results are not tax advice or an exact PAYE payslip calculation. See the site disclaimer.
After tax
How much of your pay rise do you keep?
A pay rise adds income at the top of your current taxable earnings. Moving into a higher Income Tax band does not put your whole salary into that band: only the portion inside each band is taxed at its rate. The amount you keep can also change with employee National Insurance, an active student loan and the way your workplace pension is deducted.
For example, an employee in England on £35,000 who receives a 5% rise to £36,750 has a gross annual rise of £1,750. With monthly payroll and no pension or student loan selected, the estimated take-home rise is £1,259.96 a year, or £105.00 a month. That is about 72% of the gross rise.
| Measure | Before | After | Change |
|---|---|---|---|
| Gross pay | £35,000.00 | £36,750.00 | £1,750.00 |
| Income Tax | £4,486.00 | £4,836.00 | £350.00 |
| Employee National Insurance | £1,793.88 | £1,933.92 | £140.04 |
| Estimated take-home pay | £28,720.12 | £29,980.08 | £1,259.96 |
Deductions
Income Tax and National Insurance are different
Employee National Insurance
Employee NI uses category A for an employee below State Pension age and the selected real payroll frequency. Thresholds and payroll rounding differ from annual Income Tax. Employer NI is not taken from your displayed take-home pay and is outside this calculator.
Tax region
Why a pay rise can look different in Scotland
Scottish employment income uses its own Income Tax bands and rates. Employee National Insurance and student-loan payroll mechanics remain UK-wide, so the result is not found by applying one Scottish headline rate to the whole salary. Wales remains a separate selectable profile; for 2026/27, this calculator applies the same combined employment-income rates to Wales as England and Northern Ireland.
| Tax region | Gross rise | Net annual rise | Average monthly | Kept |
|---|---|---|---|---|
| England | £2,500 | £1,487.88 | £123.99 | 60% |
| Scotland | £2,500 | £1,383.88 | £115.32 | 55% |
Your payroll profile
Pension and Student Loan settings
Workplace pension method
Salary sacrifice reduces contractual cash pay before the tax, NI and loan bases modelled here. A net pay arrangement deducts the employee contribution before Income Tax, but normally does not reduce NI or student-loan earnings. The percentage is applied to full gross pay, not qualifying earnings, and excludes employer contributions.
An employer must not let salary sacrifice reduce cash earnings below the National Minimum Wage, and lower contractual pay can affect statutory or earnings-related benefits. This calculator does not test those limits. Relief at source, annual-allowance planning and NHS pension rules are not supported; do not select net pay as a substitute for relief at source.
Student and Postgraduate Loans
Choose one active undergraduate Plan 1, 2, 4 or 5 and, if relevant, add a Postgraduate Loan. Payroll deductions use the selected pay frequency and can increase as pay above the applicable threshold increases.
This is not a loan-lifetime model: it does not use your balance, interest, write-off date or expected payoff date.
Higher incomes
The Personal Allowance taper above £100,000
Once adjusted net income exceeds £100,000, the standard Personal Allowance is gradually reduced. That can make the take-home value of additional pay look different from the headline Income Tax band alone. Pension treatment can affect adjusted net income, but this calculator is a planning estimate and does not recommend a pension or tax-planning strategy.
Methodology
How the 2026/27 estimate works
- 1Annualise current and new gross pay from the salary or hourly input.
- 2Apply the selected pension method to the relevant cash, Income Tax, NI and loan earnings bases.
- 3Calculate the standard or Scottish employment-income tax and any Personal Allowance taper.
- 4Calculate employee National Insurance category A for the selected real payroll frequency.
- 5Calculate the selected undergraduate and Postgraduate Loan payroll deductions.
- 6Compare annual take-home pay, then show average weekly, fortnightly, four-weekly or monthly changes.
Why an actual payslip may differ
Pay input frequency describes the number you enter; payroll frequency controls the NI and loan period calculation. Weekly, fortnightly, four-weekly and monthly thresholds and rounding can produce small differences. The estimate assumes one employer, stable employment pay, a standard tax code and a full tax year. The regional code shown above is a standard starting basis, not a simulation of your individual PAYE code. The estimate applies the Personal Allowance taper where relevant and excludes cumulative PAYE detail, bonuses, benefits, multiple jobs, director NI, non-standard or emergency codes, Self Assessment and employer-specific deductions.
Official HMRC and GOV.UK sources
The calculator data applies from 6 April 2026. Source retrieval dates below record the evidence checked for this tax-year model.
- GOV.UK — Rates and thresholds for employers 2026 to 2027
Income Tax bands, Personal Allowance, Category A NI, and loan thresholds
Effective 6 April 2026 · Retrieved 10 August 2026
- GOV.UK — Scottish Income Tax
2026/27 Scottish employment-income bands and standard S tax-code context
Effective 6 April 2026 · Retrieved 10 August 2026
- GOV.UK — What your tax code means
Standard 1257L code and C/S regional tax-code prefixes
Effective 6 April 2026 · Retrieved 10 August 2026
- HMRC CA38 — National Insurance contributions tables 2026 to 2027
Weekly/monthly NI limits and manual table context
Effective 6 April 2026 · Retrieved 10 August 2026
- HMRC CWG2 — Employer further guide 2026 to 2027
Exact-percentage NI period and half-penny-down rounding rules
Effective 6 April 2026 · Retrieved 10 August 2026
- HMRC SL3 — Student and Postgraduate Loan deduction tables 2026 to 2027
Loan thresholds, whole-pound floor, and multi-week calculation order
Effective 6 April 2026 · Retrieved 10 August 2026
- GOV.UK — Personal Allowances: adjusted net income
Pension deductions from adjusted net income and allowance taper
Effective 6 April 2026 · Retrieved 10 August 2026
- GOV.UK — Tax on your private pension contributions
Net pay pension tax-relief basis
Effective 6 April 2026 · Retrieved 10 August 2026
- GOV.UK — Salary sacrifice for employers
Contractual cash-pay reduction, tax/NI treatment, and National Minimum Wage limits
Effective 6 April 2026 · Retrieved 10 August 2026
FAQ
UK pay rise questions
How much of my pay rise will I keep after tax?
It depends on the Income Tax band at the top of your current earnings, employee National Insurance, your pension method and any active Student or Postgraduate Loan. Enter those details above to compare the gross rise with the estimated annual and average-period take-home change.
Does moving into a higher tax band tax my whole salary?
No. UK Income Tax is marginal: only the part of taxable income inside a band is taxed at that band's rate. Crossing a threshold does not apply the higher rate to all of your salary, although several deductions can affect how much of the next pound you keep.
Does Scotland tax a pay rise differently?
It can. Scottish employment income uses different Income Tax bands and rates from England, Wales and Northern Ireland. Employee National Insurance and student-loan payroll rules remain UK-wide, so select Scotland in the calculator rather than applying a single headline rate yourself.
How does a pay rise affect student-loan repayments?
Payroll repayments can increase when pay above your plan's period threshold increases. The calculator supports one undergraduate Plan 1, 2, 4 or 5 plus an independent Postgraduate Loan. It estimates deductions from pay, not your balance, interest, write-off date or payoff date.
Does salary sacrifice change the take-home value of a pay rise?
It can. A registered-pension salary sacrifice reduces contractual cash pay before the deductions modelled here, while a net pay arrangement reduces the Income Tax basis but normally not the National Insurance or student-loan earnings basis. Relief at source is not supported in this calculator.
Why can my payslip differ from the calculator?
A real payslip may include cumulative PAYE, a non-standard or emergency tax code, irregular pay, bonuses, benefits, several jobs, employer-specific pension rules and other deductions. This tool models stable employment pay for a full tax year and shows planning estimates, not an exact payslip.