How the Take-Home Pay Calculator Works
Enter your gross annual salary and the calculator applies all UK deductions for the 2025/26 tax year: income tax, National Insurance, your pension contribution, and any student loan repayment. Results update when you click Calculate.
Income Tax Bands 2025/26
The first £12,570 of income is tax-free (the personal allowance). You pay 20% on income from £12,571 to £50,270, 40% on £50,271 to £125,140, and 45% above £125,140. If you earn over £100,000 your personal allowance reduces by £1 for every £2 above that threshold, disappearing entirely at £125,140. To see how your take-home pay compares with your spending, try the budget planner.
Salary Sacrifice vs Personal Pension
With salary sacrifice your pension contribution comes out before tax and National Insurance are calculated, saving you NI as well as income tax. A personal contribution (relief at source) gives income tax relief but NI is charged on your full gross salary. The higher your salary, the more salary sacrifice saves. If you are planning for retirement, the retirement planner can show whether your pension contributions are on track.
Frequently Asked Questions
How is UK take-home pay calculated?
Your take-home pay is your gross salary minus income tax, National Insurance, pension contributions, and any student loan repayments. Income tax is charged at 20% on income between £12,571 and £50,270, 40% on £50,271 to £125,140, and 45% above that. National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above.
What is the personal allowance for 2025/26?
The personal allowance is £12,570, the amount you earn before paying income tax. It has been frozen since 2021/22. If your income exceeds £100,000, it reduces by £1 for every £2 earned above that threshold, reaching zero at £125,140.
What is the difference between salary sacrifice and a personal pension?
With salary sacrifice, pension contributions are deducted before tax and National Insurance are calculated, saving you NI as well as income tax. With a personal pension (relief at source), NI is calculated on your full salary but the contribution reduces your taxable income for income tax purposes.
Do Scottish residents pay different income tax?
Yes. Scotland has separate income tax rates set by the Scottish Parliament, with six bands including a 19% starter rate and 42% higher rate. National Insurance rates are the same across the whole UK.
Which student loan plan am I on?
Plan 1 covers loans taken before September 2012 (England/Wales) or before 2007 (Scotland/NI). Plan 2 covers English and Welsh loans from 2012 to 2023. Plan 4 is for Scottish students from 2007 onwards. Plan 5 applies to new English students from September 2023. Postgraduate loans repay at 6% above £21,000.