Applied to both salaries for a fair comparison.
+£10,000.00
Gross difference
+£7,200.00
Net difference (annual)
+£600.00
Net difference (monthly)
Gross increase
28.6%
Net increase
25.1%
Salary A
Salary B
Salary A
Salary B
Everything you need to know about salary comparisons in the UK
Why doesn't a £10k raise give me £10k more take-home?
The UK uses progressive tax bands. A pay rise is taxed at your marginal rate — the highest rate applying to your income. If your raise pushes you into a higher band, that portion is taxed at the new rate. This calculator shows the real net difference so you know exactly what a salary change is worth.
Tax band thresholds that matter
Key thresholds to watch: £12,570 (Personal Allowance), £50,270 (higher rate starts at 40%), £100,000 (PA taper begins — effective 60% rate), and £125,140 (additional rate at 45%). Crossing these thresholds means the extra pound is taxed at a higher rate.
When is this calculator most useful?
Use it when negotiating a pay rise, comparing job offers, considering a promotion, or deciding whether freelance vs. employed is better for you. The side-by-side view shows exactly how much more you'll take home — not just the headline number.
HMRC-Aligned: This calculator uses official HMRC rates and thresholds for the 2025/26 tax year (6 April 2025 – 5 April 2026). Results are indicative — for complex situations, consult a qualified accountant.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms