Guide

Pay rise after tax explained

Understand why a raise does not translate one-for-one into take-home pay and what marginal rates mean for negotiations.

Gross versus net

A raise increases taxable income, but only the extra slice is taxed at your current marginal rates. That is why the take-home increase is smaller than the headline rise.

Why thresholds matter

Crossing into a higher band, or moving above £100,000, can materially change how much of the raise you keep.

Practical use

Look at both annual and monthly gains before deciding how meaningful the raise feels in everyday budgeting terms.