Last reviewed: February 2026 by Mustafa Bilgic, UK Tax Specialist
Gross to Net Pay Calculator 2025/26
Quick examples — click to pre-fill:
How Gross to Net Pay is Calculated in the UK
Your take-home (net) pay is your gross salary minus income tax, employee National Insurance, pension contributions, and student loan repayments. All four deductions are calculated independently against your gross salary using the following rules for 2025/26.
Step 1: Income Tax
Income tax is calculated on your gross salary minus your personal allowance (£12,570) and any pension contributions. The remaining taxable income is taxed in progressive bands:
Important: The personal allowance tapers by £1 for every £2 earned above £100,000. At £125,140 it is completely withdrawn, creating an effective 60% marginal rate between £100,000 and £125,140.
Step 2: National Insurance (Employee Contributions)
Employee NI for 2025/26: 8% on earnings between £12,570 and £50,270 per year (Primary Threshold to Upper Earnings Limit), then 2% on earnings above £50,270.
Step 3: Pension Contributions
Under auto-enrolment, if you earn over £10,000/year, your employer must contribute a minimum 3% and you contribute a minimum 5% of qualifying earnings (£6,240–£50,270). Salary sacrifice pensions reduce your gross salary before tax and NI, maximising savings. Relief-at-source pensions allow the pension provider to claim 20% basic rate relief directly.
Worked Example: £35,000 Gross Salary (England)
£35,000 Gross → Take-Home Pay Calculation
Taxable income: £35,000 – £12,570 = £22,430
Income tax: £22,430 × 20% = £4,486
Employee NI: (£35,000 – £12,570) × 8% = £22,430 × 8% = £1,794
Net annual pay: £35,000 – £4,486 – £1,794 = £28,720
Monthly net: £28,720 ÷ 12 = £2,393/month
Weekly net: £28,720 ÷ 52 = £552/week
Common Salary Examples: Take-Home Pay 2025/26 (England)
| Gross Salary | Income Tax | Employee NI | Net Annual | Net Monthly | Net Weekly |
|---|---|---|---|---|---|
| £20,000 | £1,486 | £598 | £17,916 | £1,493 | £345 |
| £25,000 | £2,486 | £998 | £21,516 | £1,793 | £414 |
| £30,000 | £3,486 | £1,394 | £25,120 | £2,093 | £483 |
| £35,000 | £4,486 | £1,794 | £28,720 | £2,393 | £552 |
| £40,000 | £5,486 | £2,194 | £32,320 | £2,693 | £622 |
| £50,000 | £7,486 | £2,994 | £39,520 | £3,293 | £760 |
| £60,000 | £11,432 | £3,211 | £45,357 | £3,780 | £873 |
| £75,000 | £17,432 | £3,511 | £54,057 | £4,505 | £1,040 |
| £100,000 | £27,432 | £4,011 | £68,557 | £5,713 | £1,319 |
Figures are approximate. No pension, student loan, or other deductions assumed. England/Wales/NI rates applied.
Gross to Net: Scotland vs England Comparison
Scottish taxpayers pay different income tax rates but identical National Insurance to taxpayers elsewhere in the UK. The Intermediate Rate (21%) means Scots earning between £27,492 and £43,662 pay slightly more than their English counterparts who pay 20% on that income.
£35,000 in England
Tax: £4,486 | NI: £1,794
Net: £28,720/yr (£2,393/mo)
£35,000 in Scotland
Tax: ~£4,936 | NI: £1,794
Net: £28,270/yr (£2,356/mo)
£50,000 in England
Tax: £7,486 | NI: £2,994
Net: £39,520/yr (£3,293/mo)
£50,000 in Scotland
Tax: ~£9,088 | NI: £2,994
Net: £37,918/yr (£3,160/mo)
Frequently Asked Questions
How do I convert a gross salary to net pay in the UK?
Subtract the personal allowance (£12,570), apply 20% tax on income up to £50,270, 40% up to £125,140, and 45% above. Then calculate employee NI: 8% between £12,570 and £50,270, then 2% above £50,270. Subtract both from gross along with any pension and student loan contributions. The remainder is your net pay. Use the calculator above for instant, accurate results.
What is the take-home pay on a £35,000 salary?
On a £35,000 gross salary in England in 2025/26 (no pension or student loan): Income tax = £4,486; Employee NI = £1,794; Net = £28,720/year (£2,393/month). In Scotland: income tax is slightly higher at approximately £4,936, giving a net of £28,270/year (£2,356/month).
How much tax do I pay on £50,000 a year?
On a £50,000 gross salary in England 2025/26: Personal allowance £12,570 (0%); Basic rate band: (50,270 – 12,570) × 20% = £7,486 income tax. Note £50,000 is just below the higher rate threshold of £50,270, so all earnings are at 20%. Employee NI = (50,000 – 12,570) × 8% = £2,994. Net = £39,520/year (£3,293/month).
What is the 60% tax trap and how do I avoid it?
Between £100,000 and £125,140, the personal allowance reduces by £1 for every £2 of income — creating a 60% effective marginal rate (40% income tax + 20% on lost allowance). To avoid it: (1) Increase pension contributions to reduce adjusted net income below £100,000; (2) Make Gift Aid donations (they extend the basic rate band); (3) Use salary sacrifice schemes. On a £110,000 salary, contributing £10,000 to a pension can save approximately £4,000 in tax.
Does Scotland have different take-home pay?
Yes. Scottish taxpayers pay a different schedule of income tax rates but the same NI. At £35,000, a Scottish taxpayer pays roughly £450 more income tax per year than an English taxpayer. At £60,000, the gap widens to approximately £1,600/year due to Scotland's 42% Higher Rate (vs 40% in England) and the Intermediate Rate of 21%.
How does pension salary sacrifice increase my take-home pay?
Salary sacrifice reduces your gross salary before tax and NI are calculated, saving both income tax and employee NI. Example: £40,000 salary, 5% pension salary sacrifice (£2,000). New gross for tax/NI purposes = £38,000. Tax saving: £2,000 × 20% = £400. NI saving: £2,000 × 8% = £160. Total saving = £560/year. Your pension pot receives the full £2,000 but your net pay only drops by £1,440 — effectively the government contributes £560 to your pension.
How do student loan repayments affect my take-home pay?
Student loan repayments are collected via PAYE and reduce your net pay. Plan 2 (most common for English graduates): 9% on earnings above £27,295/year. On £35,000: (35,000 – 27,295) × 9% = £7,705 × 9% = £693/year (£58/month). Plan 1 threshold: £22,015. Plan 5 (new from 2023): 9% above £25,000. Select your plan in the calculator to see the exact impact.