Calculator
Enter your gross annual salary and optional pension contribution to see exactly how much you take home after tax, National Insurance, and pension deductions for the 2025/26 tax year.
About Net Pay in the UK (2025/26)
Net pay, commonly called take-home pay, is the amount of money an employee actually receives after all statutory deductions have been taken from their gross salary. For UK employees in the 2025/26 tax year, the main deductions are Income Tax and Class 1 National Insurance Contributions (NICs), although most workers will also see a pension contribution deducted if they are automatically enrolled in a workplace scheme. Understanding the difference between gross and net pay is essential for personal budgeting, mortgage applications and knowing whether a pay rise is worth what it looks like on paper.
The UK operates a progressive income tax system with a tax-free Personal Allowance of £12,570 for 2025/26. Income above this threshold up to £50,270 is taxed at the basic rate of 20%, income from £50,271 to £125,140 falls into the higher rate band at 40%, and anything over £125,140 is taxed at the additional rate of 45%. Once you earn more than £100,000 your Personal Allowance is reduced by £1 for every £2 of income above that threshold, creating an effective marginal tax rate of 60% between £100,000 and £125,140.
National Insurance for employees under state pension age is charged at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), and at 2% on earnings above that. Scottish taxpayers have different income tax bands and rates, with a starter rate of 19% and top rate of 48% — if you live in Scotland, use our Scottish Income Tax Calculator instead. Pension contributions made via salary sacrifice or net-pay arrangements reduce the amount of income that is subject to tax and NI, which is why adjusting your pension percentage in the calculator above directly increases your total take-home when the tax saving is factored in.
Worked Example: £45,000 Gross Salary
On a £45,000 gross annual salary with no pension contribution, your Personal Allowance of £12,570 covers the first slice tax-free. The remaining £32,430 is all taxed at the basic rate, giving an income tax bill of £6,486. National Insurance is charged on £32,430 at 8%, coming to £2,594.40. Your total deductions are £9,080.40, leaving a net annual pay of £35,919.60 — approximately £2,993 per month or £691 per week. If you contribute 5% to a workplace pension (£2,250), your taxable income drops to £42,750, saving £450 in income tax and slightly reducing your net take-home to around £34,119 — but with £2,250 added to your retirement savings.
Common Reasons Your Net Pay May Differ
Several factors beyond the basic calculation can change your actual take-home pay. Student loan repayments (Plan 1, Plan 2, Plan 4, Plan 5 or Postgraduate) are deducted at 9% above the relevant threshold. If you have a non-standard tax code (anything other than 1257L), your Personal Allowance may be higher or lower. Benefits in kind such as a company car, private medical insurance or a season ticket loan are taxed via your tax code and will reduce take-home pay. Married Couples Allowance, Marriage Allowance transfer and Blind Person's Allowance can all increase your tax-free amount. For a more detailed breakdown including these adjustments, try our UK Salary Calculator or Income Tax Calculator.
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Salary Calculator | Wage Calculator | Tax Calculator | NI Calculator | Pension Calculator
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Official Sources
Data verified against official UK government sources. Last checked April 2026.