PAYE Pay Calculator UK 2025/26

PAYE pay calculator UK 2025/26 — enter gross salary, see income tax, NI and take-home. Free, instant results based on HM

Quick answer: On a £30,000 PAYE salary in 2025/26 you pay £3,486 income tax + £1,394.40 NI, leaving £25,119.60/year take-home (£2,093/month). PAYE deducts tax automatically through payroll.
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

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PAYE (Pay As You Earn) is how most UK employees pay income tax and National Insurance. Your employer deducts tax and NI from your salary before paying you. This calculator shows your exact take-home using HMRC 2025/26 rates.

How paye pay calculator works in 2025/26

PAYE has worked the same way since 1944, but the rates change each tax year. For 2025/26, the personal allowance is £12,570, meaning you pay no income tax on the first £12,570 of earnings. After that, the basic rate is 20% up to £50,270, then 40% up to £125,140, then 45% above. National Insurance kicks in at £12,570 (8%) and reduces to 2% above £50,270.

Your tax code (most commonly 1257L) tells your employer how much tax-free pay to apply. PAYE is calculated cumulatively — each pay period your year-to-date tax is recalculated, so any over- or under-payment naturally corrects itself.

Worked example: £25,000 entry-level salary

Personal allowance £12,570; taxable £12,430 at 20% = £2,486 income tax; NI £994.40 (8% on £12,430).

Gross: £25,000 → Take-home: £21,519.60/year (£1,793.30/month)

Worked example: £45,000 professional

Taxable £32,430 at 20% = £6,486 income tax; NI £2,594.40 (8% on £32,430).

Gross: £45,000 → Take-home: £35,919.60/year (£2,993.30/month)

Worked example: £75,000 senior

£37,700 at 20% (£7,540) + £24,730 at 40% (£9,892) = £17,432 income tax; NI £3,016 + £494.60 = £3,510.60.

Gross: £75,000 → Take-home: £54,057.40/year (£4,504.78/month)

Frequently asked questions

What is PAYE?
PAYE (Pay As You Earn) is the UK tax system where employers deduct income tax and National Insurance from employees' wages before paying them. Introduced in 1944, PAYE handles the vast majority of UK income tax collection automatically.
Does PAYE include National Insurance?
Yes. PAYE deductions cover both income tax and Class 1 employee NI contributions. Your employer also pays Class 1A employer NI (13.8% on earnings above £9,100 secondary threshold) on top of your salary.
How is my PAYE tax code determined?
HMRC issues your tax code based on your personal allowance, benefits-in-kind, and any owed/overpaid tax from prior years. The standard 2025/26 code is 1257L meaning £12,570 tax-free. Codes like K500 indicate negative allowance (you owe tax).
When does PAYE change for 2026/27?
PAYE rates and thresholds for 2026/27 take effect from 6 April 2026. Personal allowance has been frozen at £12,570 since 2021/22 — this freeze ('fiscal drag') continues to push more earnings into higher tax bands as wages rise.
Why does my tax code start with K?
A K code means your tax-free allowance is negative — usually because of high benefits-in-kind (e.g. company car) or owed tax from a previous year. K500 means £5,000 is added to your taxable income before tax is calculated.
Can I claim a PAYE refund?
Yes — if you overpaid (e.g. left mid-year, emergency tax code) HMRC issues automatic refunds via PAYE. You can also claim through your Personal Tax Account at gov.uk for work expenses, professional fees, or uniform laundry costs.
Is Scottish PAYE different?
Yes. Scottish residents have 6 income tax bands (19%, 20%, 21%, 42%, 45%, 48%) instead of England/Wales/NI's 3 bands. Scottish tax codes start with S (e.g. S1257L). NI is identical across the UK.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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