How UK take-home pay works (2025/26)
In the UK, two deductions turn gross salary into take-home: Income Tax and National Insurance (NI), both collected through PAYE. This calculator applies the 2025/26 England, Wales and Northern Ireland rates. Your pension contribution is taken before tax, so it lowers the amount you are taxed on.
Everyone starts with a Personal Allowance of £12,570 that is taxed at 0%. Above it, income is taxed in bands. The allowance shrinks by £1 for every £2 you earn over £100,000, disappearing entirely at £125,140 — which is why an effective rate can jump sharply in that range.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Common questions
Does this include National Insurance?
Yes. The estimate deducts both Income Tax and employee National Insurance (Class 1) at 2025/26 rates, which is what PAYE takes from a normal salary.
Does it include student loan repayments?
No. Student loan repayments depend on your plan type and are deducted separately through PAYE. If you repay a student loan, your actual take-home will be a little lower than shown.
Why does my effective rate rise so fast above £100,000?
Because the Personal Allowance is withdrawn by £1 for every £2 over £100,000. Between £100,000 and £125,140 you effectively pay 60% on that slice, which pulls your overall effective rate up quickly.
Is this the same in Scotland?
No. Scotland has its own income tax bands and rates, with more bands than the rest of the UK. This page uses the England, Wales and Northern Ireland bands.
Educational estimate for a single taxpayer on the rest-of-UK bands. It excludes student loans, taxable benefits, and the Scottish rates. Check your payslip or an official calculator for your exact figure.
- 1.Income Tax rates and Personal Allowances — GOV.UK — HM Revenue & Customs
- 2.National Insurance rates and categories — GOV.UK — HM Revenue & Customs