UK Take Home Pay Calculator 2025/26
Enter your gross annual salary to see exactly how much you take home after Income Tax, National Insurance, pension contributions and student loan repayments. Choose English/Welsh or Scottish rates, add pension and student loan details, and get a full monthly and annual breakdown instantly.
How UK income tax works in 2025/26
Everyone in the UK gets a Personal Allowance of £12,570, meaning the first £12,570 of earnings is tax-free. Above that, income is taxed in bands: the basic rate of 20% applies from £12,571 to £50,270, the higher rate of 40% applies from £50,271 to £125,140, and the additional rate of 45% applies to anything above £125,140. Note that the personal allowance gradually reduces for earnings above £100,000, disappearing entirely at £125,140. This creates a 60% effective marginal rate in the £100,000 to £125,140 range: every extra pound of earnings loses 50p of personal allowance plus pays 40p in tax. Scottish taxpayers pay different rates, with six bands ranging from 19% (starter) to 48% (top rate).
National Insurance and other deductions
Employee National Insurance Contributions (Class 1) are 8% on earnings between the Primary Threshold (£12,570 per year) and the Upper Earnings Limit (£50,270 per year), and 2% on earnings above that. This is separate from income tax and applies to all UK employees, regardless of whether you are Scottish or not. If your employer offers salary sacrifice for pension contributions, both your tax and your NI are calculated on the reduced salary, making salary sacrifice more tax-efficient than a standard personal pension contribution. Student loan repayments are collected through payroll and are calculated on income above plan-specific thresholds: Plan 1 at 9% above £24,990, Plan 2 at 9% above £27,295, Plan 4 (Scotland) at 9% above £31,395, Plan 5 at 9% above £25,000, and Postgraduate Loans at 6% above £21,000.
Effective tax rate versus marginal tax rate
Your marginal rate is the rate you pay on your next pound of income. For a basic-rate taxpayer it is 20% income tax plus 8% NI, a combined 28% on each extra pound earned between the primary threshold and £50,270. Your effective tax rate is the total tax paid divided by gross income, and it is always lower than the top marginal rate because lower bands apply to all earnings up to each threshold. For example, a £35,000 salary in England has an effective income tax rate of around 9.5%, even though the marginal rate is 20%, because the first £12,570 is tax-free. This calculator shows both rates so you can see the difference clearly.
Pension contributions and your take-home pay
Auto-enrolment minimum contributions in 2025/26 are 5% employee and 3% employer, totalling 8% of qualifying earnings. Salary sacrifice means your employer reduces your contract salary by your contribution amount and pays it directly into your pension, so you avoid income tax and National Insurance on that amount. A £2,000 annual pension contribution via salary sacrifice saves a basic-rate taxpayer around £560 in tax and NI compared to paying into a personal pension from take-home pay. Higher-rate taxpayers save more. If you use relief at source (standard personal pension), the pension provider claims basic-rate tax relief on your behalf, but higher-rate taxpayers must reclaim the extra via a Self Assessment tax return.
2025/26 UK Income Tax Bands
| Annual income (gross) | Tax rate | Band |
|---|---|---|
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| £100,001 to £125,140 | 40% (60% effective) | PA taper zone |
| Above £125,140 | 45% | Additional rate |
England, Wales and Northern Ireland rates. Scottish rates differ.
Frequently asked questions
What is the difference between gross and net pay?
Gross pay is your total salary before any deductions. Net pay (take-home pay) is what actually reaches your bank account after income tax, National Insurance, pension contributions and student loan repayments are taken off. The gap between the two depends on your salary level, tax region, and the deductions that apply to you.
Do Scottish taxpayers pay more tax?
It depends on your income. Scottish taxpayers earning below approximately £28,000 pay slightly less income tax than those in England due to the 19% starter rate. Above that, Scottish rates are generally higher. A Scottish taxpayer on £50,000 pays noticeably more income tax than an equivalent English taxpayer, largely because of the 42% higher rate that starts at £43,663 compared to 40% in England starting at £50,271. National Insurance is the same across the UK.
What is salary sacrifice and is it worth it?
Salary sacrifice is an arrangement where your employer formally reduces your contract salary and pays the difference into your pension. Because your official salary is lower, you pay less income tax and less National Insurance. It is almost always worth using if your employer offers it: a basic-rate taxpayer saves around 28p for every £1 sacrificed (20% tax + 8% NI), versus 20p saved via a personal pension. Higher-rate taxpayers save even more. The only things to check are whether it affects benefits linked to salary such as mortgage affordability or life cover multiples.
Why does my take-home pay drop sharply above £100,000?
Above £100,000, your personal allowance is reduced by £1 for every £2 you earn over that threshold, reaching zero at £125,140. This means you effectively pay 40% tax on the lost allowance as well as 40% on the new income, creating a combined marginal rate of around 60% on earnings between £100,000 and £125,140. Making pension contributions to bring your adjusted net income below £100,000 can recover the lost allowance and dramatically reduce your tax bill.
How much student loan do I repay each month?
Student loan repayments are 9% of your income above the plan threshold (6% for postgraduate loans). For Plan 2, the threshold is £27,295 in 2025/26. On a £35,000 salary you would repay 9% of (£35,000 minus £27,295) = 9% of £7,705 = £693 per year, or about £58 per month. Repayments are income-contingent: you pay nothing if your salary drops below the threshold.
Does this calculator include employer National Insurance?
This calculator shows employee deductions only, because employer NI is a cost to your employer rather than a deduction from your payslip. In 2025/26 employers pay 13.8% on employee earnings above £9,100, rising to 15% from April 2025 following the Autumn Budget announcement. Employer NI does affect your total employment cost but does not reduce your take-home pay directly.
When does the 2025/26 tax year run?
The UK tax year runs from 6 April to 5 April the following year. The 2025/26 tax year therefore runs from 6 April 2025 to 5 April 2026. This calculator uses the 2025/26 rates and thresholds confirmed at the Autumn Budget 2024.