Compare Two UK Salaries
After Tax 2026/27

Enter both salaries above. The tool calculates income tax, National Insurance, and pension for each, then shows the monthly and annual take-home side by side. The difference accounts for all deductions so you can see which salary actually puts more in your pocket.

Yes — a higher gross salary always means a higher net pay. However, the margin narrows as you move into higher tax bands. Earning £5,000 more in the basic rate band (20%) saves you much more than £5,000 more in the higher rate band (40%), and pension auto-enrolment is capped at the qualifying earnings upper limit of £50,270.

Yes. The tool applies the standard auto-enrolment pension rate of 5% on qualifying earnings (the £6,240–£50,270 band). If either salary exceeds the upper qualifying earnings limit, pension contributions cap out at that level.

This tool compares two annual PAYE salaries. For comparing a day rate contract with a permanent salary — including the impact of IR35, employer NI, and umbrella margins — use our day rate and IR35 calculator instead.

A £5,000 raise in the basic rate band (20% tax + 8% NI = 28%) nets you approximately £300/month. The same raise above £50,270 (40% tax + 2% NI = 42%) only nets you about £242/month. The higher rate threshold significantly reduces the take-home value of pay rises above that point.

The effective rate shows your combined income tax and National Insurance as a percentage of gross salary. It excludes pension. For a £30,000 salary this is roughly 22%, rising to about 32% at £60,000. It is different from your marginal rate (the rate applied to your last pound of income).

For earnings above £50,270, salary increases become increasingly tax-inefficient. Employer pension contributions, salary sacrifice schemes, extra annual leave, or remote working benefits can be worth more in real terms than equivalent salary increases — especially above the higher rate threshold.