Updated for 2025/26
£42,480 vs £62,480 Salary Comparison
Compare a £42,480 salary against £62,480. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£20,000
per year
Take Home Extra
+£1,057.55
per month
You Keep
63%
of the raise
5-Year Gain
+£63,453
cumulative
Higher Rate Tax Threshold
One or both salaries cross the higher rate threshold (£50,271.00). Above this, you pay 40% tax on additional earnings, so the actual take-home difference is smaller than it appears.
- Pension contributions above £50,271 save 40% tax - very valuable
- Consider salary sacrifice schemes for electric cars or cycle-to-work
- Above £60k, child benefit starts being clawed back (if applicable)
- Equity or bonus structures may be more tax-efficient than base salary
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
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Comparison Results
| Metric | £42,480 | £62,480 | Difference |
|---|---|---|---|
| Gross Salary | £42,480 | £62,480 | £20,000 |
| Income Tax | £5,982 | £12,424 | £6,442 |
| National Insurance | £2,393 | £3,260 | £867 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £34,105 | £46,796 | £12,691 |
| Take-Home (Monthly) | £2,842 | £3,900 | £1,058 |
| Effective Tax Rate | 19.7% | 25.1% | 5.4% |
£42,480
Gross£42,480
Take-Home£34,105
You Keep80.3%
£62,480
Gross£62,480
Take-Home£46,796
You Keep74.9%
Tax Band Analysis
Understanding where your money goes
£42,480
Tax BandBasic Rate
Marginal Rate20%
Income Tax£5,982.00
National Insurance£2,392.80
Take Home (Monthly)£2,842.10
£62,480
Tax BandHigher Rate
Marginal Rate40%
Income Tax£12,424.00
National Insurance£3,260.20
Take Home (Monthly)£3,899.65
Tax Band Change: This salary increase crosses from the Basic Rate (20%) into the Higher Rate (40%). The portion above £50,270.00 will be taxed at the higher rate.
What £1,057.55 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget
Savings Boost
£12,690.60/year extra into savings or investments
Car Payment
Could cover a decent car on PCP or lease
Full Comparison: £42,480 vs £62,480
£42,480
- Gross Pay£42,480.00
- Take Home (Year)£34,105.20
- Take Home (Month)£2,842.10
- Effective Tax Rate19.7%
£62,480
- Gross Pay£62,480.00
- Take Home (Year)£46,795.80
- Take Home (Month)£3,899.65
- Effective Tax Rate25.1%
The difference in take-home pay is £12,691 per year, which works out to £1,057.55 per month.