Precision Utility
Two Salaries
Calculator
Tax Year
2025/26
Personal Allowance
£12,570
Comparing two job offers? Enter both gross salaries and see exactly how much you would take home from each after income tax, National Insurance and pension contributions. Results update instantly using current HMRC rates for the 2025/26 tax year.
Salary Details
Salary A — Annual Take-Home Pay
£0
Income Tax
£0
National Insurance
£0
Pension
£0
Net Monthly
£0
Salary B — Annual Take-Home Pay
£0
Income Tax
£0
National Insurance
£0
Pension
£0
Net Monthly
£0
Difference (B − A)
Gross
£0
Net Annual
£0
Net Monthly
£0
Extra Tax + NI
£0
How the two salaries calculator works
Enter two gross annual salaries using the sliders or input fields. Set your pension contribution percentage — this applies equally to both offers so the comparison is fair. The calculator instantly works out income tax, National Insurance and pension deductions for each salary using the current 2025/26 HMRC rates.
Results appear in two navy cards showing annual take-home pay, income tax, National Insurance, pension and net monthly pay for each offer. The difference card below highlights the gap between the two — including how much extra you would actually receive after deductions.
Open the full breakdown to see a side-by-side table of every deduction. This makes it easy to spot where the extra money goes when you move into a higher tax band.
What to consider when comparing salary offers
Gross salary is only part of the picture. When comparing two offers, consider the following alongside take-home pay:
- Pension contributions: a higher employer match can be worth thousands per year in long-term savings
- Benefits in kind: private healthcare, company car, gym membership and childcare vouchers all have real value
- Holiday allowance: an extra five days off is effectively worth about 2% of your salary
- Bonus and commission: variable pay can significantly boost total compensation but is not guaranteed
- Location and commute: a higher salary in a more expensive area or with a longer commute may not leave you better off
The UK tax system is progressive, so crossing into the higher-rate band (above £50,270) means only the portion above that threshold is taxed at 40%. You never lose money by earning more — but the marginal benefit shrinks at higher incomes.
For detailed rates and thresholds, see the official HMRC income tax rates page on GOV.UK.
Frequently asked questions
How do I compare two salary offers fairly?
To compare salary offers fairly, look at take-home pay rather than gross salary. Enter both figures into the calculator and compare the net annual or monthly amounts after income tax, National Insurance and pension deductions. A higher gross salary does not always mean more money in your pocket, especially once you cross into a higher tax band.
Can a higher gross salary result in lower take-home pay?
In practice, a higher gross salary always produces higher take-home pay in the UK tax system because tax bands are progressive — only the portion above each threshold is taxed at the higher rate. However, the difference in net pay can be much smaller than you expect once higher-rate tax and reduced Personal Allowance kick in.
How does pension contribution affect the comparison?
Pension contributions made through salary sacrifice reduce your taxable income, which lowers both income tax and National Insurance. If one job offers a higher employer pension match, the lower gross salary could still leave you better off overall when you factor in pension savings.
Should I consider benefits as well as salary?
Absolutely. Benefits such as private healthcare, company car, additional holiday, flexible working and employer pension contributions all have monetary value. A slightly lower salary with strong benefits can be worth more than a higher salary without them. Use the net pay comparison as a starting point, then factor in the value of any benefits.
What tax bands apply in the UK for 2025/26?
For 2025/26 the Personal Allowance is £12,570 (tax-free). Basic rate is 20% on income from £12,571 to £50,270, higher rate is 40% from £50,271 to £125,140, and additional rate is 45% above £125,140. The Personal Allowance tapers by £1 for every £2 earned over £100,000.
How is National Insurance calculated on each salary?
Employees pay 8% National Insurance on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. There is no NI on the first £12,570. The calculator applies these rates to both salaries so you can see the NI cost for each offer.