UK Take-Home Pay Calculator

In the UK, the gap between your gross salary and your take-home pay is created mainly by two deductions: Income Tax and National Insurance (NI). Understanding how each works helps you make sense of your payslip and judge whether a new job or pay rise is as good as it looks.

Income Tax in England, Wales and Northern Ireland is charged in bands. Everyone starts with a tax-free Personal Allowance — £12,570 in 2025/26 — on which no Income Tax is due. Income above that is taxed at the basic rate of 20% up to £50,270, the higher rate of 40% up to £125,140, and the additional rate of 45% above that. Crucially, the Personal Allowance is tapered away once you earn over £100,000, reduced by £1 for every £2 of income above that threshold, which creates an effective 60% marginal rate between £100,000 and £125,140 — a quirk worth knowing for high earners. (Scotland sets its own bands, so figures differ there.)

National Insurance is a separate tax that funds the state pension and certain benefits. Employees pay Class 1 NI on earnings above the same £12,570 threshold: in 2025/26 the main rate is 8% on earnings up to £50,270, then 2% on anything above. Unlike Income Tax, NI is calculated per pay period rather than cumulatively, though the annual effect is similar for steady salaries.

The two combine so that your marginal deduction — the tax and NI on your next pound earned — is typically 28% in the basic-rate band (20% tax + 8% NI) and 42% in the higher-rate band (40% + 2%). This is why take-home pay rises more slowly than gross pay as you move up.

Several things can change the picture. Pension contributions made through salary sacrifice or a workplace scheme reduce both your taxable income and often your NI, boosting the value of saving for retirement. A student loan repayment, if you have one, is deducted on top. Workplace benefits, the marriage allowance and other allowances can also affect your code.

This calculator gives a clean estimate of your take-home pay using current rates and the standard Personal Allowance. Your actual pay depends on your tax code, pension arrangements, student loan plan and any benefits, so treat the result as a close guide. For Scottish taxpayers or complex situations, check the latest HMRC figures or speak to an adviser.