Answers · UK 2025/26

How much extra take-home pay do I get from a £5,000 raise from £45,000 to £50,000?

A £5,000 pay rise from £45,000 to £50,000 in 2026/27 increases take-home pay by £3,600 a year (£300 a month), because the entire raise is taxed at the combined 28% marginal rate (20% Income Tax plus 8% National Insurance), with £50,000 still comfortably below the £50,270 higher-rate threshold.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

On £45,000 in 2026/27, taxable income of £32,430 gives £6,486 Income Tax, and National Insurance of £2,594.40, leaving £35,919.60 take-home. On £50,000, taxable income of £37,430 falls just within the basic rate band (below the £37,700 cut-off), giving £7,486 Income Tax, and National Insurance of £2,994.40, leaving £39,519.60 take-home. The difference is £3,600 extra take-home pay from the £5,000 raise, or £300 a month -- a "keep rate" of 72%, reflecting the combined 28% marginal rate (20% basic rate Income Tax plus 8% employee National Insurance) that applies to the whole raise, since neither £45,000 nor £50,000 crosses the £50,270 higher-rate threshold. This is a useful benchmark: below £50,270, each additional £1 earned nets you about 72p. Above £50,270, the marginal rate jumps to 42% (40% tax plus 2% NI), so a pay rise that crosses that threshold nets less per pound for the portion above it. If this raise came with a matching increase in pension contributions or arrived as a bonus rather than a permanent salary increase, the calculation would need adjusting, but for a straightforward salary increase within the basic rate band, £3,600 of extra net pay per £5,000 gross is a reliable rule of thumb.