How to compare salaries
- Give each salary a name (for example “Current job” and “New offer”) and enter the yearly salary, any bonus, your pension % and the employer pension %.
- Switch on Add a third salary to compare three offers.
- Choose where you live and the tax year. 2026/27 is the default.
- Under Pension type and student loan, pick how your pension is paid and tick any student loan plans you repay.
- Read the difference in take-home pay at the top. Switch between year, month and week, and check the side-by-side table, which includes the employer pension.
- Use What a pay rise really adds to see how much of a rise on the first salary reaches your bank account.
How the comparison works
Each salary goes through the same 2026/27 rules as a payslip. The personal allowance is £12,570. In England, Wales and Northern Ireland, income tax is 20% on the next £37,700, 40% up to £125,140 and 45% above that. Scotland has six bands, from 19% to 48%. Employee National Insurance is 8% between £12,570 and £50,270 and 2% above. Student loans take 9% of pay above the plan threshold (Plan 2: £29,385) and 6% above £21,000 for a Postgraduate Loan. A bonus is added to the year's pay, and pension contributions are taken as you choose:
- Net pay: taken before income tax, but NI is still due on the full salary.
- Relief at source: taken after tax at 80% of the gross amount. The provider claims the 20% basic-rate relief.
- Salary sacrifice: lowers your salary, so you save both tax and NI.
The Pay plus pension row adds what goes into your pension, from you and your employer, to your take-home pay. A slightly lower salary with a much better employer pension can be the better offer.
Why a pay rise is worth less than it looks
What you keep from a rise depends on your marginal rate: the tax, NI and student loan on the next pound, not your average rate. The table shows it as “Tax, NI and loan on the next £100”. With a net-pay pension, your contribution also gets tax relief, so the tax part is a little lower. Typical marginal rates in England in 2026/27:
- £12,570 to £50,270: 20% tax + 8% NI = 28%, so you keep 72p of each extra pound (63p with a student loan).
- £50,270 to £100,000: 40% tax + 2% NI = 42%.
- £100,000 to £125,140: the personal allowance shrinks by £1 for every £2, so the tax rate is effectively 60%, or 62% with NI.
- Above £125,140: 45% tax + 2% NI = 47%.
In Scotland the higher rate is 42% and starts at a lower salary: about £43,663 with the standard allowance in 2026/27. Between that point and £50,270 you pay 42% tax plus 8% NI, which is 50%.
Worked example (England, 2026/27)
Salary A is £35,000 and salary B is £40,000. Both pay 5% into a net-pay pension.
- A: pension £1,750, income tax £4,136, NI £1,794.40. Take-home is £27,319.60 a year.
- B: pension £2,000, income tax £5,086, NI £2,194.40. Take-home is £30,719.60 a year.
- The £5,000 rise adds £3,400 a year (£283.33 a month), so you keep 68%. The other £250 isn't lost: it goes into your pension, which grows by £250 a year.
What else to weigh up
Take-home pay is only part of an offer. Look at the employer pension (some employers match higher contributions), bonus terms, overtime, holiday, commuting costs and hours. A bonus is taxed like salary in the month it is paid. That payslip may show more tax, but over the year the income tax comes out the same as here. NI is worked out per pay period, so it can differ a little. If one job moves you over £100,000, a bigger pension contribution can win back the personal allowance.
Related calculators
For one salary in full detail, use the UK salary calculator. To compare this year with last year, use the tax year comparison. To work back from the take-home pay you need, use the net to gross salary calculator. For hourly offers, try the hourly wage calculator, and for percentage rises the percentage calculator. If you're in the US, use the US salary comparison.
Frequently asked questions
How much of a pay rise will I actually take home?
For most basic-rate taxpayers in England, Wales and Northern Ireland, 72% (20% income tax and 8% NI come off). Higher-rate taxpayers keep 58%. Between £100,000 and £125,140 you keep only about 38%. A student loan takes another 9% above its threshold.
Is a higher salary always better after tax?
Yes. In the UK a pay rise never lowers your take-home pay, because the higher rates only apply to the part above each threshold. But less pension, a smaller bonus or higher costs can make a higher salary worth less overall.
How do I compare a job offer with a pension?
Enter each offer's pension percentages and look at both rows: take-home pay and “Pay plus pension”. A higher employer contribution adds to your reward without lowering your take-home pay.
What is my marginal tax rate?
It is the share of your next pound of pay that goes on income tax, National Insurance and student loan. The table shows it for each salary.
Does a bonus get taxed more?
No. A bonus is taxed at your normal rates. The payslip it comes on may show a bigger deduction because PAYE works month by month, but your income tax for the whole year is the same. National Insurance is worked out for each pay period, so on a large bonus it can come out slightly lower than this yearly estimate.
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