Is a higher salary always better after tax?

Usually, but not always by as much as you think. A higher salary can cross into the 40% band, the £100k taper or a student-loan threshold, so part of the extra is taxed harder — and a job with a better pension or salary sacrifice can net out closer than the headline gap suggests.

Should I compare salary or take-home?

Take-home is what reaches your account, so compare that. A £3,000 higher salary might only be £1,700 more in your pocket after tax and NI — and pension contributions change the picture again.

What else should I weigh up?

Beyond pay: pension contributions and match, holiday, hours, commute and benefits. This tool covers the take-home maths; the rest is yours to judge.

Compare two job offers

A bigger salary isn't always more in your pocket. Put both offers in — with their pension — and see the take-home side by side for 2026/27.

I live in Scotland

Offer A

Salary

Pension (salary sacrifice)

Monthly take-home

£2,993

£35,920 a year

Offer B

Salary

Pension (salary sacrifice)

Monthly take-home

£3,173

£38,080 a year

Offer B leaves you £2,160 a year better off.

Verified · 2026/27 · 21 June 2026

Effective rate —

Marginal rate — on your next £1

What it's worth in real terms

Your salary has the spending power of — in 2025 money — the pound has lost — since then. A rise of — would just keep pace.

Inflation: ONS Consumer Prices Index, latest May 2026.

How this was calculated

For the 2026/27 tax year (England, Wales & Northern Ireland) we apply your tax-free Personal Allowance, the Income Tax bands, employee National Insurance, and any student-loan repayment — each traced to a dated gov.uk/HMRC source. A pension contribution comes off before Income Tax (and before National Insurance too, for salary sacrifice). Over £100,000 the Personal Allowance tapers away, which is why the marginal rate jumps to about 60%.

The full method and every source is on our methodology page.

Built & maintained by the Pay Packet team · methodology sourced from HMRC · last reviewed 21 June 2026. About our figures →

Comparing offers properly

Compare take-home, not headline salary — that is the money that actually reaches you. The figures above strip out Income Tax, National Insurance and your pension contribution for each offer, so the comparison is like-for-like.

Watch for thresholds: if one offer crosses £50,270 (40% tax) or £100,000 (the allowance taper), the extra salary is taxed harder, so the take-home gap is smaller than the salary gap. A more generous pension or salary-sacrifice arrangement can also tip a slightly lower salary ahead. The figures here are for 2026/27; the answer-context box shows the effective and marginal rate on the better offer.

Job offer questions

Is a higher salary always better after tax?: Usually, but not always by as much as you think. A higher salary can cross into the 40% band, the £100k taper or a student-loan threshold, so part of the extra is taxed harder — and a job with a better pension or salary sacrifice can net out closer than the headline gap suggests.
Should I compare salary or take-home?: Take-home is what reaches your account, so compare that. A £3,000 higher salary might only be £1,700 more in your pocket after tax and NI — and pension contributions change the picture again.
What else should I weigh up?: Beyond pay: pension contributions and match, holiday, hours, commute and benefits. This tool covers the take-home maths; the rest is yours to judge.