How much of your raise will you actually keep?
Most people are surprised. A £5,000 raise might net you just £2,847. A $10,000 raise in California could leave you with $6,400. Know the real number before you negotiate.
Why your gross raise and net raise differ
Every extra pound or dollar you earn sits on top of your existing income — so it's taxed at your marginal rate, not your average rate. In the UK, earning between £50,271 and £100,000 means 42% of any raise goes to tax (40% income tax + 2% NI). In California on $120k, you could lose up to 52% of a raise to federal + state + FICA.
Your salaries
Tax settings
2026 projected federal rates.
Enter your salaries to see your real net gain
Most people are surprised how little of a raise they actually keep.
How the raise calculator works
🇺🇸 US raise calculation
- 1
Calculate tax at your current salary
Your current gross is run through the 2026 federal brackets, FICA (Social Security 6.2% up to $178,500 + Medicare 1.45%), and your state income tax rate.
- 2
Calculate tax at your new salary
The same calculation runs again with your new (higher) gross salary, using the same deductions (401k, HSA, health insurance) so the comparison is apples-to-apples.
- 3
Difference = your net raise
Net annual raise = new take-home minus current take-home. This is what you actually gain — not the headline gross figure.
- 4
Marginal rate on the raise
Divide the tax paid on the raise by the gross raise to show your effective marginal rate. This is the rate that matters for negotiation — every dollar of raise is taxed at this rate.
🇬🇧 UK raise calculation
- 1
Run PAYE at current salary
Income tax is calculated using HMRC 2026/27 bands (20%/40%/45%) with the £12,570 Personal Allowance, plus Employee NI at 8% (£12,570–£50,270) and 2% above.
- 2
Run PAYE at new salary
The same calculation runs at your new salary. If your new salary crosses a tax threshold (e.g. £50,270 or £100,000), the bands automatically apply the higher rate to the relevant slice.
- 3
Flag the £100k–£125,140 taper zone
Between £100,000 and £125,140, your Personal Allowance is withdrawn at £1 per £2 of additional income. This creates an effective 60% marginal rate — the calculator highlights this so you can plan ahead.
- 4
Student loan impact
If your new salary crosses your plan threshold (Plan 2: £29,385; Plan 5: £25,000 etc.), the calculator adds the 9% repayment to your marginal cost, so you see the true net benefit of the raise.
🇺🇸 US: What eats your raise?
- –Federal income tax at your marginal bracket (10%–37%)
- –Social Security 6.2% (up to $178,500 wage base)
- –Medicare 1.45% (+ 0.9% additional above $200k)
- –State income tax (0% in TX/FL, up to ~11% in HI)
- +HSA and health insurance premiums lower your FICA base
🇬🇧 UK: What eats your raise?
- –Income tax at 20%, 40%, or 45% (or Scottish 19%–48%)
- –National Insurance at 8% (£12,570–£50,270) or 2% above
- –60% effective rate between £100k–£125,140 (PA taper)
- –Student loan repayments kick in above plan threshold
- +Pension contributions reduce income tax (not NI)
Frequently asked questions
Why do I only keep ~60% of my raise?
Your raise sits on top of your existing income, so it's taxed at your marginal rate — not your average rate. In the UK, higher-rate taxpayers (£50,271+) pay 40% income tax + 2% NI = 42% on every extra pound. In high-tax US states like CA or NY, federal + state + FICA can easily exceed 40–45%.
Should I ask for a higher gross salary to account for tax?
Yes — if you need a specific take-home number, work backwards. Use this calculator to find the gross salary that delivers your target net pay. A common mistake is negotiating for a gross figure without considering what you actually receive.
Does a raise affect my student loan repayments?
Yes. In the UK, student loan repayments are calculated on earnings above your plan threshold (e.g. Plan 2: £29,385). A raise above this threshold means 9% of every extra pound also goes to student loan repayment — so the marginal cost of a raise can be even higher than the headline tax rate suggests.
What's the best way to maximise a UK pay rise?
If you're near a tax boundary (e.g. just crossing £50,270 into the 40% band), consider salary sacrifice into your pension. Every £1 of gross salary converted to pension saves you 42% in tax+NI (at the basic-to-higher transition) and costs you far less in net pay than the gross amount suggests.
I'm in the £100k–£125,140 zone — should I negotiate differently?
Yes. In this range, your effective marginal rate is 60% — meaning you keep only 40p in every extra £1. The most tax-efficient move is to sacrifice any raise above £100,000 into your pension, restoring your full Personal Allowance and dropping your effective rate back to 40%+NI.
My US raise crosses a tax bracket — will I pay more on my whole salary?
No. The US uses marginal brackets, meaning only the income in each bracket is taxed at that rate. A raise that pushes you from the 22% to the 24% bracket means only the income above the bracket threshold is taxed at 24% — the rest stays at its previous rate.
🇺🇸 US official references
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