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What does a pay rise really add to your take-home?

A £5,000 raise doesn't mean £5,000 more in your pocket. Income tax, NI, pension and any student loan all take a share — and a raise can tip you into a higher band. Here's what actually reaches you, for 2026/27.

What you'll actually keep

£
£
% of pay

Private by design — your salary is never sent to a server. See our methodology.

Why you keep less than the headline

Each extra pound of a raise is taxed at your marginal rate, not your average rate. For a higher-rate taxpayer with a student loan, the extra is reduced by 40% income tax + 2% NI + 9% student loan = 51% — so a £5,000 raise adds roughly £2,450 to take-home. Basic-rate earners keep more; anyone whose raise crosses £50,270 or approaches £100,000 keeps proportionally less.

Fiscal drag: with tax thresholds frozen, "standard" pay rises increasingly push people into higher bands over time — so the gap between a headline raise and what you keep tends to widen. Checking the real number before you negotiate or accept a new job is the point of this tool.

Common questions

How much of a pay rise do I actually keep?
It depends on your marginal rate. A basic-rate taxpayer keeps most of it; a higher-rate taxpayer with a student loan can lose around half to tax, NI and the loan.
Will a pay rise push me into a higher tax band?
Possibly — the higher-rate band starts at £50,270 for 2026/27. The calculator flags it.
Does a pay rise affect my student loan repayments?
Yes — repayments are a percentage of income above your plan's threshold, so a raise increases them.
How do I compare a new job offer?
Enter both salaries to see the real take-home difference, including pension and the next pound after tax.

Compare it properly in Pursely

The app compares two salaries side by side — take-home, pension and the very next pound after tax, including the £100k trap — privately, on your iPhone.

Sources: Income Tax rates (gov.uk) · National Insurance (gov.uk) · Student loan repayments (gov.uk) · Pursely methodology

Last updated June 2026 · maintained by Andrei Vlaic.

Pursely provides estimates for guidance only and is not financial, tax or investment advice. Figures are updated each tax year.