Salary comparison calculator, 2026/27
Comparing two salary figures side by side, including the tax and National Insurance each attracts, shows the real difference in take-home pay rather than just the headline numbers. Enter both salaries to see a full comparison for 2026/27.
The salary comparison calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Uses 2026/27 income tax bands and employee National Insurance rates on salary only, with no dividends, pension contributions, student loan or benefits in kind included. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under personal finance & planning. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
Net take-home pay difference (B vs A)
Salary A net take-home pay
Tax £5,486, NI £2,194Salary B net take-home pay
Tax £9,432, NI £3,111Effective marginal rate on the difference
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
Each salary is put through the same 2026/27 income tax and employee National Insurance calculation independently to arrive at a net take-home figure, and the two results are then compared directly. This shows not just the difference in take-home pay but also the effective marginal rate applied to the difference between the two salaries.
The marginal rate on the difference is often higher than either salary's average tax rate, because the additional income sits on top of the lower salary and is taxed at whatever band that extra slice falls into, which can include higher rate tax and NI at the same time.
Comparing job offers or a pay rise
A £15,000 pay rise rarely means £15,000 extra in your pocket, particularly once part of it crosses into the higher rate band at 40% tax plus National Insurance; this calculator makes the real net difference explicit rather than leaving you to compare gross headline figures.
For a director comparing a proposed salary increase against taking the equivalent value as dividends instead, use the Salary vs Dividend Calculator, since dividends are taxed under a different set of rates and do not attract National Insurance at all.
Limitations to bear in mind
This calculator only compares salary; it does not account for different pension contributions, benefits in kind, bonus structures or student loan repayments that might apply differently to each role or scenario.
If either salary involves salary sacrifice arrangements, such as into a pension, the effective comparison would need to reflect the reduced contractual salary rather than the headline figure.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
Why is the marginal rate on the difference higher than my average tax rate?
Because the additional income between the two salaries sits on top of the lower salary, it can be taxed entirely within the higher rate band and NI main rate, producing a marginal rate on that slice that is higher than either salary's overall average rate.
Does this include student loan repayments?
No, student loan repayments are not included. If applicable, they would reduce the net take-home pay difference further, particularly once income crosses the relevant plan threshold.
Can I use this to compare a salary against dividend income?
Not directly, since dividends are taxed under different rates and are not subject to National Insurance. Use the Salary vs Dividend Calculator for a like-for-like comparison between the two income types.
Does the comparison account for pension auto-enrolment contributions?
No, auto-enrolment contributions are not deducted in this comparison. If both salaries are subject to auto-enrolment, the relative net difference would be similar, but the absolute take-home figures would both reduce slightly.
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