2025–26 Tax Year · England & Wales
Compare two UK salaries after tax
Is the pay rise worth it? See exactly how much more you'd actually take home — after income tax and National Insurance.
Is the pay rise worth it? See exactly how much more you'd actually take home — after income tax and National Insurance.
| Component | Salary A | Salary B | Difference |
|---|---|---|---|
| Gross Salary | £40,000 | £50,000 | +£10,000 |
| Income Tax | £5,486 | £7,486 | +£2,000 |
| National Insurance | £2,194 | £2,994 | +£800 |
| Total Deductions | £7,680 | £10,480 | +£2,800 |
| Take-Home Pay | £32,320 | £39,520 | +£7,200 |
In England and Wales for 2025–26, a pay rise in the basic rate band is taxed at a combined marginal rate of 28% (20% income tax + 8% NI). In the higher rate band (above £50,270) the combined rate rises to 42% (40% tax + 2% NI). Between £100,000 and £125,140 the effective marginal rate hits 60% due to the personal allowance being gradually withdrawn.
On a basic-rate salary (e.g. £35,000 → £40,000) a £5,000 gross rise nets you roughly £3,600 extra take-home — about £300/month. In the higher rate band (e.g. £55,000 → £60,000) the same rise nets around £2,900 due to the 42% combined marginal rate. Use the calculator above to see your exact figures.
£50,270 is the higher rate threshold for 2025–26. Below it, income tax is 20% and NI is 8% — a combined marginal rate of 28%. Above it, income tax jumps to 40% and NI drops to 2% — a combined marginal rate of 42%. A pay rise that crosses this boundary is taxed at two different marginal rates on either side.
Above £100,000 your personal allowance (£12,570) is withdrawn at £1 for every £2 earned. This creates an effective marginal rate of 60% between £100,000 and £125,140. It can be worth making pension contributions to bring gross income back below £100,000 and reclaim the full allowance.