Take-Home Comparison
Compare two salary offers side by side to see the real take-home difference. Accounts for income tax, National Insurance, pension contributions, student loans, and bonuses. Supports both England and Scotland tax bands.
Smart Tips
Offer B gives you £7,200 more per year
After all deductions, Offer B (£45,000 gross) gives you £35,920/year take-home vs £28,720/year from Offer A. That's £600 more per month.
Of the £10,000 gross difference, you keep 72%
The £10,000 difference in gross salary translates to £7,200 in take-home pay. Tax, NI, and other deductions absorb 28% of the pay rise.
Effective tax rates differ: 17.9% vs 20.2%
Offer B has a higher effective deduction rate. Even though gross may be higher, a larger percentage goes to tax, NI, and deductions.
Frequently asked questions
- How do I compare two job offers on take-home pay?
- To compare two offers accurately, account for income tax, National Insurance, pension contributions, and student loan repayments. A £5,000 gross salary increase may result in only £2,500 to £3,000 more take-home pay after tax depending on your tax band.
- Does living in Scotland affect how much tax I pay?
- Yes. Higher earners above approximately £43,662 typically pay more income tax in Scotland than in England, while those below that threshold may pay slightly less. National Insurance is the same across the UK.
- How does pension salary sacrifice affect the comparison between two offers?
- Salary sacrifice reduces gross pay before tax, saving both income tax and NI. An employer offering salary sacrifice may result in higher net take-home than one offering the same gross salary without it, especially for higher-rate taxpayers.