Your next £1 · UK · 2026
What does your next £1 actually add?
How much of a pay rise do you actually keep?
A pay rise never lands in full — tax, National Insurance and student loan all take a slice of the extra, not just your original salary. A basic-rate earner keeps about 70p of each new £1; a higher-rate earner about 58p; and in the £100k–£125k trap, as little as 38p. Drag your salary below to see exactly what happens to your next £1 and your next £1,000.
Verified 12 August 2026
What you keep of your next £1, by salary
Because of how the bands stack, the slice you keep isn't steady — it drops at each threshold, and dips sharply in the £100k–£125k personal-allowance taper:
| Salary band | Marginal rate | You keep of each extra £1 |
|---|---|---|
| Up to £12,570 | 0% | £1.00 |
| £12,570 – £50,270 | 28% | 72p |
| £50,270 – £100,000 | 42% | 58p |
| £100,000 – £125,140 | 62% | 38p |
| Above £125,140 | 47% | 53p |
Rates include 8%/2% National Insurance where it applies. Add a Plan 2 student loan and 9% comes off the top of each figure above £27,295. How we calculate.
Did your last pay rise actually change how you live?
See how the whole country answered on the UK money mood page.