Answers · UK 2025/26

Will a pay rise that pushes me into the 40% band leave me worse off?

No - only the income above GBP 50,270 is taxed at 40%, so a rise crossing the threshold always leaves you better off. On a GBP 48,000 to GBP 53,000 rise (GBP 5,000), you keep about GBP 3,228 of it. The real cliff edges are Child Benefit (HICBC) and the GBP 100,000 trap, not the 40% band itself.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

Full answer

The UK uses marginal tax bands, so crossing into the 40% higher rate never makes your whole salary taxed at 40% - only the slice above GBP 50,270 is. A rise into that band always increases your take-home. Worked example: a rise from GBP 48,000 to GBP 53,000 (GBP 5,000 gross). The first GBP 2,270 (taking you to GBP 50,270) is taxed at 20% + 8% NI = 28%, and the next GBP 2,730 at 40% + 2% NI = 42%. Tax and NI on the rise: GBP 2,270 x 28% = GBP 635.60, plus GBP 2,730 x 42% = GBP 1,146.60, total GBP 1,782.20. You keep about GBP 3,217 of the GBP 5,000 - clearly better off. Where a rise can genuinely sting is at specific cliff edges: the High Income Child Benefit Charge claws back Child Benefit between GBP 60,000 and GBP 80,000 of adjusted net income; and the 60% trap between GBP 100,000 and GBP 125,140, where the Personal Allowance tapers GBP 1 for every GBP 2 over GBP 100,000, so each extra GBP 100 of pay can cost GBP 60 in tax and NI. In both cases you are still better off in cash terms, but the marginal rate is high, and salary sacrifice into a pension can restore allowances or Child Benefit. Scotland's bands differ (42% from a lower point), so Scottish taxpayers feel the higher rate sooner. Compare before and after with the Take-Home Pay and Income Tax calculators, and read the bands at gov.uk/income-tax-rates.