Your marginal rate matters
A pay rise is taxed at your marginal rate — the rate on your next pound of income. For a basic-rate taxpayer in England with no student loan, that is 20% Income Tax plus 8% National Insurance, so you keep about 72p of each extra pound.
Higher earners
Between £50,270 and £100,000 the marginal rate is usually 40% tax plus 2% NI. Between £100,000 and £125,140, the Personal Allowance taper creates an effective 60% Income Tax rate, plus NI.
Student loans
If your salary is above your student loan threshold, another 9% of each extra pound goes towards repayments.
Check your own numbers
Because thresholds and deductions combine differently for every person, the most reliable way to see your result is to compare your current and new salary in a calculator.
Figures refer to the 2025/26 tax year. General information only, not financial advice.
