Pay Rise Comparisons
See the real net take-home difference between two UK salaries and the effective marginal tax rate on your pay rise for 2026/27.
Frequently asked questions
What is the marginal tax rate in the UK?
At incomes up to £50,270, the combined marginal rate is 28% (20% income tax + 8% NI). Between £50,270 and £100,000 it rises to 42% (40% + 2%). Between £100,000 and £125,140 it reaches 62% because your personal allowance is tapered away, the most punishing band in the UK tax system.
How much extra take-home does a £5,000 pay rise give?
It depends on your current salary. At basic rate (below £50,270), a £5,000 rise adds roughly £3,600 to annual take-home. At higher rate (£50,270–£100,000) it adds roughly £2,900. In the £100k–£125k taper zone it adds only roughly £1,900.
Why does earning £100,000 cost so much in tax?
Between £100,000 and £125,140, HMRC removes £1 of personal allowance for every £2 of income above £100,000. This creates an effective 60% marginal rate (40% income tax + 2% NI + 20% lost allowance taxed at 40%). It is often called the £100k tax trap.