More in your pocket
£120.00a month
A year
£1,440.00
A week
£27.69
Your new salary is £42,000. You keep 72% of the rise: £400.00 goes in income tax and £160.00 in National Insurance. Take-home goes from £2,693.30 to £2,813.30 a month.
What a rise on £40,000 leaves you
| Rise | New salary | A year more | A month more | You keep |
|---|---|---|---|---|
| 2% | £40,800 | £576.00 | £48.00 | 72% |
| 3% | £41,200 | £864.00 | £72.00 | 72% |
| 5% | £42,000 | £1,440.00 | £120.00 | 72% |
| 10% | £44,000 | £2,880.00 | £240.00 | 72% |
| 20% | £48,000 | £5,760.00 | £480.00 | 72% |
England, Wales and Northern Ireland, tax code 1257L, no pension or student loan.
Quick answers
How much of a £2,000 pay rise do I keep?
£1,440 a year on a £40,000 salary, or £120 a month. Income tax takes 20% and National Insurance 8% of the extra pay.
Why do I keep less when I earn over £50,270?
Above £50,270 each extra £1 is taxed at 40% plus 2% National Insurance, so you keep 58p instead of 72p. Between £100,000 and £125,140 you keep only 38p, because your tax-free allowance shrinks as well.
Does a pay rise change my tax code?
Usually not. Your tax code is about your allowances, not your pay; the extra tax is taken automatically through PAYE.
Tax and National Insurance: GOV.UK and HMRC rates for 2026/27. Checked 31 Oct 2026.