Updated for 2025/26
£48,420 vs £55,018 Salary Comparison
Compare a £48,420 salary against £55,018. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£6,598
per year
Take Home Extra
+£340.49
per month
You Keep
62%
of the raise
5-Year Gain
+£20,429
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 | £48,420 | £55,018 | Difference |
|---|---|---|---|
| Gross Salary | £48,420 | £55,018 | £6,598 |
| Income Tax | £7,170 | £9,439 | £2,269 |
| National Insurance | £2,868 | £3,111 | £243 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £38,382 | £42,468 | £4,086 |
| Take-Home (Monthly) | £3,199 | £3,539 | £340 |
| Effective Tax Rate | 20.7% | 22.8% | 2.1% |
£48,420
Gross£48,420
Take-Home£38,382
You Keep79.3%
£55,018
Gross£55,018
Take-Home£42,468
You Keep77.2%
Tax Band Analysis
Understanding where your money goes
£48,420
Tax BandBasic Rate
Marginal Rate20%
Income Tax£7,170.00
National Insurance£2,868.00
Take Home (Monthly)£3,198.50
£55,018
Tax BandHigher Rate
Marginal Rate40%
Income Tax£9,439.20
National Insurance£3,110.96
Take Home (Monthly)£3,538.99
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 £340.49 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
Full Comparison: £48,420 vs £55,018
£48,420
- Gross Pay£48,420.00
- Take Home (Year)£38,382.00
- Take Home (Month)£3,198.50
- Effective Tax Rate20.7%
£55,018
- Gross Pay£55,018.00
- Take Home (Year)£42,467.84
- Take Home (Month)£3,538.99
- Effective Tax Rate22.8%
The difference in take-home pay is £4,086 per year, which works out to £340.49 per month.