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Updated for 2025/26

£88,000 vs £108,000 Salary Comparison

Compare a £88,000 salary against £108,000. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£20,000
per year
Take Home Extra
+£833.33
per month
You Keep
50%
of the raise
5-Year Gain
+£50,000
cumulative

Senior Leadership Compensation

At this level, tax efficiency becomes crucial. Between £100,000.00-£125,140.00, you face an effective 60% marginal rate as personal allowance is withdrawn.

  • The £100k-£125k "trap" means earning £100k often leaves you with more than £115k
  • Employer pension contributions can reduce taxable income below key thresholds
  • Consider spreading bonuses across tax years where possible
  • Professional tax advice typically pays for itself at this level

Compare Salaries

Enter multiple salaries to compare take-home pay for 2025/26

£
£

Comparison Results

Metric£88,000£108,000Difference
Gross Salary£88,000£108,000£20,000
Income Tax£22,632£32,232£9,600
National Insurance£3,771£4,171£400
Pension£0£0£0
Take-Home Pay (Yearly)
£61,597
£71,597
£10,000
Take-Home (Monthly)£5,133£5,966£833
Effective Tax Rate30.0%33.7%3.7%

£88,000

Gross£88,000
Take-Home£61,597
You Keep70.0%

£108,000

Gross£108,000
Take-Home£71,597
You Keep66.3%

Tax Band Analysis

Understanding where your money goes

£88,000

Tax BandHigher Rate
Marginal Rate40%
Income Tax£22,632.00
National Insurance£3,770.60
Take Home (Monthly)£5,133.12

£108,000

Tax BandHigher Rate
Marginal Rate40%
Income Tax£32,232.00
National Insurance£4,170.60
Take Home (Monthly)£5,966.45

What £833.33 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
£10,000.00/year extra into savings or investments
Car Payment
Could cover a decent car on PCP or lease

Full Comparison: £88,000 vs £108,000

£88,000

  • Gross Pay£88,000.00
  • Take Home (Year)£61,597.40
  • Take Home (Month)£5,133.12
  • Effective Tax Rate30.0%

£108,000

  • Gross Pay£108,000.00
  • Take Home (Year)£71,597.40
  • Take Home (Month)£5,966.45
  • Effective Tax Rate33.7%

The difference in take-home pay is £10,000 per year, which works out to £833.33 per month.