Pay rise and job offer calculator: is a rise over £100k worth it?
A rise that takes adjusted net income over £100,000 keeps £580 of each £1,000 in the taper band, and for our younger-child scenario crossing the limit puts £10,550 of annual childcare value at risk. It's rarely worth refusing, but it's often worth sacrificing the part above £100,000 into the pension. The calculator compares both salaries and shows what you keep with and without the sacrifice.
Your household
Results update as you type. One earner; England, Wales or Northern Ireland rules, 2026-27.
A year before tax. Can be lower than now.
Your result
What you keep of a £10,000 rise
−£6,350worse off, counting childcare
Take-home rises £4,200, but £10,550 of childcare support goes. Sacrificing £8,000 into the pension fixes it.
- Take-home after
- £71,597a year
£5,966 a month, from £5,616.
- Sacrifice to stay under £100k
- £8,000a year
£667 a month into the pension.
- Marginal rate after
- 62%of the next £1,000
Of the next £1,000 of gross salary, £380 remains after income tax, employee NI and any Child Benefit charge. This includes any tax-band crossing; childcare is shown separately.
New salary with £8,000 sacrificed, line by line
- Take-home change
- −£3,040
- Tax and NI saved
- +£4,960
- Childcare regained
- +£10,550
- Pension gained
- +£8,000
- Better off overall
- +£15,510
Show the working
| Line | Now | New salary |
|---|---|---|
Gross pay Salary plus bonus for the tax year. | £98,000 | £108,000 |
Adjusted net income (ANI) The figure HMRC uses for the £100k tests: taxable income after pension contributions and Gift Aid. GOV.UK | £98,000 | £108,000 |
Personal allowance Full allowance: ANI is not over £100,000. GOV.UK | £12,570 | £8,570 |
Income tax 20% / 40% / 45% on income above your personal allowance. GOV.UK | −£26,632 | −£32,232 |
National Insurance 8% between £12,570 and £50,270, then 2%. GOV.UK | −£3,971 | −£4,171 |
Take-home pay What lands in the bank from pay. | £67,397 | £71,597 |
Child Benefit Paid for each child you claim for. GOV.UK | £1,407 | £1,407 |
Child Benefit charge (HICBC) 1% of Child Benefit for every £200 of ANI over £60,000. GOV.UK | −£1,407 | −£1,407 |
Tax-Free Childcare Up to £2,000 a year per child. GOV.UK | £2,000 | £0 |
Funded childcare hours (value) 30 hours a week, 38 weeks a year, valued at £7.50 an hour. GOV.UK | £8,550 | £0 |
Tax year 2026-27. How we calculate. Guidance, not financial advice.
England childcare estimate: assumes all other eligibility conditions are met, including your partner’s income and both parents’ minimum earnings. Full Tax-Free Childcare needs £10,000 of eligible bills per child per year after funded hours, spread to use the £500 quarterly top-up. Funded hours are valued at £7.50 per hour. Universal 15 hours for the children selected remain above £100k and are excluded from the value at risk. Term dates, grace periods and disability enhancements are not modelled. Childcare assumptions. Pension contribution limits are not checked.
£98,000 now, £108,000 after. Adjusted net income £98,000 to £108,000.
Take the £8,000 plan with you.
One email with your numbers: the £8,000 a year, the £667 a month, the working line by line, and what to ask payroll for.
Worked example: £98,000, one child
Computed from the 2026-27 rules when this page was built. Change the household above for your own.
Childcare example: England, children aged 9 months to 2, a full year of eligible support and enough paid childcare to use the maximum top-up. Universal hours for older children reduce the amount at risk.
- 1Compare £98,000 with the new salary: gross change, take-home change and childcare change, line by line.
- 2Sacrificing the part above £100,000 keeps the childcare support and the allowance; the calculator shows what lands in the bank either way.
How it works
- Both salaries are run through the same rules: tax, NI, the allowance taper, the Child Benefit charge and childcare eligibility. gov.uk/income-tax-rates
- The gain is take-home plus Child Benefit less the charge, plus childcare support kept or lost. gov.uk/guidance/adjusted-net-income
- Sacrificing the part above £100,000 keeps adjusted net income at the limit. gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye
Questions people ask
Should I turn down a pay rise over £100k?
Does cutting my hours to stay under make sense?
What about a job offer with a different pension?
Where next
Worked out already
Your own number takes two minutes.
Change the household above to match your payslip. The working updates as you type, the page keeps your numbers in this browser tab.