After-tax pay rise tool
Salary Increase Calculator
Estimate how much extra take-home pay a salary increase may actually create after tax and payroll deductions. Use it to compare the old salary with the new salary, then read the result as a planning estimate rather than a payslip promise.
The figures on this page are planning estimates. They are designed to help interpret salary movement, not replace an employer payslip, HMRC, IRS, payroll software or personal tax advice.
Calculator inputs
Compare old and new salary
Estimated result
After-tax difference
This looks like a useful increase, but the monthly figure is the one to compare with real bills, savings and housing costs.
How to read this page
A salary increase is best judged by the extra net pay it creates, not just the headline raise. The calculator compares current and new salary, estimates annual and monthly take-home changes, and flags whether the increase is likely to feel modest, useful or significant after tax.
| Step | What to compare | Why it matters |
|---|---|---|
| Current salary | Estimate current take-home pay. | This is the baseline before the raise. |
| New salary | Estimate take-home pay after the increase. | This shows the practical change. |
| Monthly difference | Compare the net monthly gain. | This is usually the number that affects budgeting. |
Why salary increases feel different after tax
A pay rise is taxed at the marginal rate that applies to the extra income. That does not mean the whole salary is taxed at the higher rate, but it does mean the final increase in take-home pay can be smaller than the headline salary movement.
UK and US context
In the UK, Income Tax, National Insurance, pension choices, student loans and salary sacrifice can affect the result. In the US, federal tax, FICA, state tax, benefits and withholding settings can change the paycheck outcome.
How to use the result
Use the monthly increase for budgeting, housing affordability, debt repayments and savings planning. Use the annual increase when comparing offers, promotions or longer-term compensation decisions.
Practical examples
| Example | What it shows | Planning takeaway |
|---|---|---|
| £40,000 to £45,000 or $40,000 to $45,000 | The gross raise looks like 12.5%. | The take-home increase is smaller because payroll deductions apply to the extra pay. |
| £60,000 to £70,000 or $60,000 to $70,000 | The extra pay may cross tax thresholds. | Monthly net gain is the number to use for bills and savings. |
| £100,000 to £120,000 or $100,000 to $120,000 | High-income thresholds can matter more. | Check tax bands, benefits, pension or retirement choices and local/state tax. |
UK and US planning context
| Context | What can affect the increase | Useful route |
|---|---|---|
| UK salary increase | Income Tax, National Insurance, pension contributions, student loans, salary sacrifice and tax code changes. | UK salary after tax |
| US salary increase | Federal tax, FICA, state tax, filing status, benefits, retirement contributions and withholding. | US salary after tax |
| High-income raise | Tax thresholds, phase-outs, state tax and planning choices can make the retained share less intuitive. | Six-figure salary planning |
Related salary increase tools
Authority and planning guides
Salary Increase Calculator FAQ
How do I calculate a salary increase after tax?
Compare estimated take-home pay before and after the raise. The difference is the after-tax value of the salary increase.
Why is my pay rise smaller after tax?
The extra income is subject to tax and payroll deductions. Benefits, pension contributions, student loans, FICA, state tax or withholding can also affect the result.
Is this exact payroll advice?
No. It is a planning estimate using simplified UK and US assumptions. Real payroll depends on tax code, filing status, benefits, deductions and employer settings.
Should I compare annual or monthly increase?
Use annual figures for offer comparison and monthly figures for rent, mortgage, bills, savings and everyday budget planning.
Bottom line
A salary increase is most useful when it is translated into after-tax monthly income and then compared with real commitments. Use the calculator or guide as a decision baseline, then check actual payroll details before relying on the result.
Job offer and affordability tools
Use these tools when a new salary needs to be tested against tax, housing, commuting, bills, moving costs and monthly affordability.