UK Take-Home Pay Calculator
Work out your net salary for the 2025/26 tax year after Income Tax, employee National Insurance and workplace pension contributions. Scottish income tax bands differ and are not applied here.
Salary and Pension Details
Pension contributions are taken from pay before Income Tax (net pay arrangement or relief at source). National Insurance is charged on your full gross salary unless your pension is paid through salary sacrifice. Student loan and postgraduate loan repayments are not included.
UK Income Tax Bands 2025/26 (taxable income after the personal allowance)
| Band | Taxable income | Rate | Taxed in band | Tax |
|---|---|---|---|---|
| Basic rate | £0 - £37,700 | 20% | £30,180 | £6,036 |
| Higher rate | £37,701 - £125,140 | 40% | £0 | £0 |
| Additional rate | Over £125,140 | 45% | £0 | £0 |
| Total Income Tax | Taxable income: £30,180 | - | - | £6,036 |
Employee National Insurance is 8% on annual earnings between £12,570 and £50,270, then 2% on everything above £50,270. Payroll assesses National Insurance in each pay period, so a bonus month can push part of that period's pay into the 2% band earlier than the annual figures suggest. Your employer also pays employer National Insurance, which is not deducted from your pay and is not shown here.
Understanding Your UK Pay Deductions
How the 2025/26 income tax bands work
Income tax is charged on your taxable income, which is your gross pay minus pension contributions and your personal allowance. The first £37,700 of taxable income is taxed at 20%, the next slice up to £125,140 at 40%, and anything above that at 45%. Only the slice inside each band is taxed at that rate, so a raise never reduces your net pay.
National Insurance is separate from income tax
Employee National Insurance is not an income tax band. It starts at £12,570 of gross annual earnings, runs at 8% up to £50,270, then drops to 2% on the rest. Pension contributions under a net pay arrangement or relief at source reduce taxable pay but not National Insurance, so only salary sacrifice lowers both.
Three ways pension tax relief is applied
With a net pay arrangement, contributions come out of pay before tax, so you get full relief at your marginal rate. With relief at source, you pay from taxed income and the provider claims 20%, with higher-rate relief claimed through self assessment. With salary sacrifice, you give up part of your salary, cutting income tax and National Insurance.
Effective rate versus marginal rate
The effective rate is your total deductions divided by gross salary, so it stays well below the headline rates. The marginal rate applies to your next £1 of gross salary and is what matters when you compare a pay rise, an extra pension contribution or overtime. Between £100,000 and £125,140 the tapered personal allowance pushes the marginal rate to about 60% before National Insurance.
Frequently Asked Questions
Why does my payslip differ from this estimate?
Payroll applies your tax code, which may include company benefits, a previous job or an adjustment from HMRC, and it may operate on a week 1 or month 1 basis instead of cumulative. Your employer may also deduct student loans, cycle to work repayments, salary sacrifice schemes or childcare vouchers. Any of these shifts your taxable pay, so treat this calculator as a close estimate rather than an exact payslip figure.
Do these rates apply to Scottish taxpayers?
No. Scottish income tax uses its own five bands and thresholds, and the resulting tax can be higher or lower than the rest of the UK depending on your salary. National Insurance and the personal allowance work the same way across the UK. If you live in Scotland, use HMRC's Scottish income tax calculator or your payroll records instead of this page.
Are student loan repayments included?
No. Student loan and postgraduate loan repayments are collected through PAYE on top of income tax and National Insurance, based on thresholds that vary by plan (Plan 1, Plan 2, Plan 4, Plan 5 and postgraduate loans). They do not reduce your income tax or National Insurance, so a borrower's net pay will be lower than the figure shown here.
What is the personal allowance taper?
Everyone usually gets a £12,570 personal allowance. Once adjusted net income passes £100,000, the allowance drops by £1 for every £2 earned above that line and is gone at £125,140. Losing allowance while still paying the 40% higher rate creates an effective marginal rate of about 60%. Making pension contributions, gift aid donations or salary sacrifice payments lowers adjusted net income and can bring part of the allowance back.
Estimates Only - Not Tax Advice
This calculator uses the published 2025/26 rates for England, Wales and Northern Ireland and produces estimates only. It is not tax advice and it does not replace your payslip, your tax code or HMRC guidance. Your actual net pay depends on your personal circumstances, including benefits in kind, tax code adjustments, salary sacrifice, student loans and pension scheme rules. Always verify figures against official HMRC and GOV.UK sources, or ask a qualified accountant, before making financial decisions.
Recommended Personal Finance & Wealth Classics
Master compounding, tax optimization, and index fund investing with bestselling guides like 'The Psychology of Money' and 'The Simple Path to Wealth'.
Explore this country
United Kingdom
Popular in other countries
Spot an outdated rate or want another country covered? Email[email protected]