How much is a £1,000 pay rise after tax?

The short answer: for most people on £12,570 to £50,270, a £1,000 pay rise is worth £720 a year, or £60 a month, after tax and National Insurance. Above £50,270 you keep £580. With a student loan, take off another £90.

What you keep from £1,000 at different salaries

With a 5% pension, take-home rises a little less, but £50 more goes into your pension each year, with tax relief on it.

Why you keep £720 at basic rate

The odd results

• Under £12,570: you keep all of it, as no tax or NI is due yet.
• Crossing £50,270: the part above the line is taxed at 40%, so you keep somewhere between £580 and £720.
• £60,000 to £80,000 with Child Benefit: the charge takes 1% of your Child Benefit for each £200, so £1,000 more costs 5% of it. With two children that is about £118, leaving roughly £460.
• £100,000 to £125,140: the personal allowance taper means you keep about £380. See the 60% tax trap.
• Above £125,140: 45% tax and 2% NI leave you £530.

What £1,000 a year buys

At £60 a month, a £1,000 rise covers roughly a monthly phone and broadband bill, or a weekly food shop every month. It is worth having, but it will not change your budget much on its own. If inflation is 3%, someone on £30,000 needs about £900 just to stand still. See is a 5% pay rise good?

£1,000 as a pay rise or a one-off bonus

A pay rise is taxed the same way as a bonus of the same size, but a rise repeats every year and builds on future rises and pension. Over five years, a £1,000 rise is worth about £3,600 after tax at £30,000, before any further increases. See how bonuses are taxed.

Put it in your pension instead?

If your employer pays the £1,000 into your pension instead, none of it is taxed now, and some employers add the £150 they save in employer NI. A basic-rate taxpayer would get £1,000 or more in the pension instead of £720 in pay. You cannot spend it until 57, but it can be worth much more. See pay rise or more pension.

Other common rises

£1,000 in Scotland

Scottish taxpayers have more bands, so the amount kept can be higher or lower depending on salary.

£1,000 an hour, a week and a month

A £1,000 rise is about £0.51 an hour on a 37.5-hour week, £19 a week or £83 a month before tax. After basic-rate tax and NI, that is about £0.37 an hour or £60 a month.

What it adds up to over the years

That is before future rises, which are usually a percentage of your salary, so a higher base keeps paying.

This is general information, not financial advice. Figures use 2026/27 rates for England, Wales and Northern Ireland with the standard 1257L tax code.