How do I compare two salaries after tax?

Enter both gross figures along with pension percentage, bonus and car allowance for each, and the calculator applies the 2026/27 income tax bands (20%/40%/60%/45%) and employee National Insurance (8%/2%) to work out net income for both, so you can see the real difference rather than just the gross gap.

Is a pay rise worth less than it used to be because of frozen tax thresholds?

Often, yes. Because the £12,570 personal allowance and the £50,270 higher-rate threshold have been held at the same level for several years rather than rising with inflation or wages, an increasing share of any pay rise is taxed at 40% or pulls National Insurance into the 8% band sooner than it would if thresholds had risen — a phenomenon commonly called fiscal drag.

Does this calculator account for pension contributions in the comparison?

Yes — you can set a different pension contribution percentage for each salary, and the calculator reduces taxable income accordingly before applying the 2026/27 tax bands.

Can I compare salaries for the 2026/27 tax year specifically?

Yes, the calculator is built on 2026/27 income tax bands and National Insurance thresholds, so the net income figures reflect the current tax year rather than an earlier one.

Salary Comparison Calculator UK 2026/27 – Compare Two Salaries

Comparing two salaries after tax, pension and fiscal drag

Comparing two salaries — a pay rise, a new job offer, or a permanent role against another — is more than subtracting one gross figure from another. Pension contribution rates, any bonus or car allowance, and the fact that the personal allowance and higher-rate threshold have been frozen since 2021 (and, following the Autumn Budget, are set to stay frozen until 2030/31) all affect how much of an increase you actually keep.

How to use this calculator

Enter both salaries, along with any bonus, car allowance and pension contribution percentage that applies to each
The calculator applies the 2026/27 income tax bands and Class 1 employee National Insurance rates to both figures independently
Compare net income, not just gross, side by side — including how much of a pay rise is absorbed by moving into a higher tax band

Salary Comparison Calculator (Two Salaries)

Comparing two salaries after tax, pension and fiscal drag

How to use this calculator

Frequently asked questions