Two Salaries Comparison
Our two salaries calculator compares the combined take-home pay of two earners — a couple, two business partners, or any two employees — showing individual and household net income after income tax and National Insurance for 2026/27. It is particularly useful for households making decisions about childcare costs, shared finances, or one partner reducing hours.
Two Salaries Comparison
Compare two salary offers side by side — see which pays more take-home, and by how much.
Why Household Income Matters
The UK tax system taxes individuals, not households — but several thresholds are household-based or affect couples jointly. The High Income Child Benefit Charge (HICBC) applies to any individual in the household earning above £60,000, regardless of whether they claim child benefit. The Marriage Allowance allows a lower earner to transfer £1,260 of their Personal Allowance to a higher-earning partner — saving up to £252 per year in income tax. Understanding both salaries together reveals these planning opportunities and the true combined tax cost.
For a household where one partner earns £65,000 and the other earns £20,000, the high earner will face the full Child Benefit clawback on three children — an effective marginal tax rate above 60% on earnings between £60,000 and £80,000. Comparing this household against one where both partners earn £42,500 (the same total) reveals a significant tax difference despite identical combined gross income.
Marriage Allowance Eligibility 2026/27
If one partner earns below £12,570 (or has unused Personal Allowance) and the other is a basic rate taxpayer (not higher or additional rate), you may be eligible for the Marriage Allowance. The lower earner transfers £1,260 of their allowance, saving the higher earner £252 per year. You can backdate claims for up to four years. This calculator identifies whether Marriage Allowance could benefit your household.
Frequently Asked Questions
Generally no — the UK does not have joint taxation. Each person pays tax independently on their own income. The Marriage Allowance is the only mainstream tax benefit available to married couples or civil partners, and it is limited to £252 per year. Some pension rules and inheritance tax rules also offer spouse exemptions, but these are separate from income tax.
If either partner in a household earns above £60,000, the child benefit is subject to the High Income Child Benefit Charge. For every £200 earned above £60,000, 1% of the benefit is clawed back. At £80,000, the full benefit is repaid. The clawback is based on the higher individual income, not the household total.
Where income is from jointly owned assets (rental property, business partnerships), income can be legitimately split between spouses. Employment income cannot be transferred. A spouse can hold shares in a family company and receive dividends, but HMRC scrutinises arrangements where the primary purpose is tax avoidance. Use our Income Tax Calculator to see each individual tax position.
The partner reducing hours will pay less income tax and NI, but may also lose employer pension contributions and other benefits. The household take-home pay effect depends on the pro rata salary and which tax band the reduction affects. Our Pro Rata Calculator converts any salary to the correct part-time equivalent.
Each person has their own Personal Savings Allowance — £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. A household with two earners has a combined PSA of up to £2,000 per year. Savings held jointly should have interest split 50:50 for tax purposes unless you notify HMRC of a different split.
Enter two annual gross salaries to compare side by side. The most common use is comparing a job offer against your current salary — the calculator shows exactly how much more (or less) you would take home rather than just the gross difference. A £5,000 pay rise does not produce £5,000 extra net; depending on your position relative to band boundaries, the net benefit is typically £2,800 to £3,300. The effective rate column shows how the percentage going to tax and NI changes at different salary levels — higher earners see a disproportionate increase in deductions once they cross the £50,270 threshold. Select Scotland if either or both scenarios involve Scottish income tax for accurate results.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.