Salary Comparison UK — Compare Two Salaries Side by Side After Tax
When evaluating a job offer, negotiating a pay rise, or comparing your current salary against a new opportunity, the gross salary figure alone can be misleading. A higher gross salary does not always mean a proportionally higher take-home pay — particularly when a salary increase pushes you into a higher tax band or reduces your Personal Allowance. This UK salary comparison calculator lets you enter two different salary scenarios and see the exact difference in net take-home pay after Income Tax, National Insurance, pension contributions, and student loan repayments. Compare your current salary against a job offer, or model the impact of a pay rise, in seconds.
Compare Job Offers UK — Why Gross Salary Differences Are Misleading
The marginal tax rate in the UK means that each additional pound of income is taxed at your highest applicable rate. This creates a non-linear relationship between gross salary increases and net pay increases. The table below illustrates how much of a gross salary increase you actually keep at different income levels.
Current Salary
Pay Rise
Marginal Rate
Net Increase
You Keep
£25,000
£5,000
28% (20% + 8%)
£3,600
72%
£45,000
£10,000
28% (20% + 8%)
£7,200
72%
£50,000
£5,000
42% (40% + 2%)
£2,900
58%
£60,000
£10,000
42% (40% + 2%)
£5,800
58%
£100,000
£10,000
62% (40% + 2% + PA taper)
£3,800
38%
£125,000
£10,000
47% (45% + 2%)
£5,300
53%
Pay Comparison UK — Beyond the Salary: Total Compensation
When comparing two job offers, salary is only one component of total compensation. Other factors that significantly affect your financial position include: employer pension contributions (an employer matching 5% of a £50,000 salary adds £2,500 per year to your retirement savings), private health insurance (worth £500–£2,000 per year depending on cover), annual leave entitlement (each additional day of leave is worth approximately 0.4% of your annual salary), bonus structure (a guaranteed 10% bonus on a £50,000 salary is worth £5,000 gross), and remote working flexibility (saving on commuting costs, which average £3,000–£5,000 per year for London commuters). Use the salary comparison calculator above to compare the base salary figures, then factor in these additional benefits manually.
Frequently Asked Questions
How do I compare two salaries after tax in the UK?
Enter both salaries into the comparison calculator above. The calculator applies 2025/26 Income Tax and NI rates to each salary and shows you the net take-home pay for each, along with the difference in monthly and annual take-home. This gives you an accurate picture of the real financial difference between the two salaries, accounting for the progressive tax system.
Is a £5,000 pay rise worth it if it pushes me into the higher rate band?
Yes, a pay rise is always worth taking — you will always take home more money even if part of the increase is taxed at a higher rate. The misconception that a pay rise can leave you worse off is a myth. However, the net increase will be smaller than the gross increase. For example, if a £5,000 rise pushes £2,000 of your income into the Higher Rate band, you pay 42% on that £2,000 (£840) and 28% on the remaining £3,000 (£840) — keeping £3,320 of the £5,000 rise.
How does location affect salary comparison in the UK?
The UK tax system applies the same rates regardless of where you live in England, Wales, or Northern Ireland (Scottish rates differ). However, cost of living varies significantly by region. A £40,000 salary in Manchester has considerably more purchasing power than the same salary in London, where average rents are 60–80% higher. When comparing salaries in different locations, consider using a cost-of-living adjustment alongside the tax comparison.