UK Salary After Tax 2025/26
Select your salary to see your complete take-home pay breakdown
Select Your Annual Salary
Related Calculators
Understanding UK Salary and Take-Home Pay in 2025/26
Knowing your take-home pay is one of the most important aspects of managing your personal finances. Your gross salary — the figure quoted in your employment contract — is never the amount that lands in your bank account each month. Between Income Tax, National Insurance contributions, pension deductions, and potentially student loan repayments, your actual take-home pay can be significantly lower than your headline salary.
The UK tax system operates on a cumulative basis through the Pay As You Earn (PAYE) scheme, meaning your employer deducts taxes from your wages before you receive them. For the 2025/26 tax year (running from 6 April 2025 to 5 April 2026), several key thresholds and rates apply that determine how much you keep from every pound earned. This page provides a comprehensive guide to understanding your UK salary after tax, covering everything from tax bands and National Insurance to student loans and workplace pensions.
Use the salary links above to see a detailed breakdown for any specific annual salary between £15,000 and £150,000, or try our Salary Calculator for a custom calculation with your exact figures.
2025/26 Income Tax Bands and Rates
Income Tax in the UK is charged at different rates depending on how much you earn. The tax-free Personal Allowance and the thresholds for each band are set by HM Revenue & Customs (HMRC) and confirmed in the annual Budget. For the 2025/26 tax year, the rates for England, Wales, and Northern Ireland are as follows:
| Tax Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Important: The Personal Allowance is reduced by £1 for every £2 earned above £100,000. This means if you earn £125,140 or more, your Personal Allowance is zero. This creates an effective 60% marginal tax rate on income between £100,000 and £125,140 — a significant tax trap that higher earners should be aware of when planning their finances.
Scotland has different rates: Scottish taxpayers pay Income Tax at different rates (Starter, Basic, Intermediate, Higher, Advanced, and Top rates). If you live in Scotland, use our Tax Calculator which includes Scottish tax band options.
How Income Tax Is Calculated on Your Salary
Income Tax in the UK is calculated using a marginal system, which means different portions of your income are taxed at different rates. You do not pay one flat rate on your entire salary. Here is how it works step by step:
- Start with your gross annual salary — this is your total salary before any deductions.
- Subtract your Personal Allowance (£12,570) — you pay no tax on this amount. The remaining figure is your taxable income.
- Apply the Basic Rate (20%) to the first £37,700 of taxable income (i.e., earnings from £12,571 to £50,270).
- Apply the Higher Rate (40%) to taxable income from £50,271 to £125,140.
- Apply the Additional Rate (45%) to any taxable income above £125,140.
Worked Example: £35,000 Salary
If you earn £35,000 per year, your Income Tax is calculated as follows:
- Personal Allowance: £12,570 at 0% = £0
- Taxable income: £35,000 − £12,570 = £22,430
- Basic Rate: £22,430 at 20% = £4,486
- Total Income Tax: £4,486 per year (£373.83 per month)
For a detailed breakdown at any salary level, click on the relevant amount in the salary grid above or use our Income Tax Calculator.
2025/26 National Insurance Rates
National Insurance contributions (NICs) are a separate deduction from your salary that fund the state pension, NHS, and other benefits. As an employee, you pay Class 1 National Insurance. Your employer also pays NICs on your behalf (employer NICs), but these do not reduce your take-home pay directly.
| NI Category | Earnings Range | Employee Rate |
|---|---|---|
| Below Primary Threshold | Up to £12,570 per year | 0% |
| Primary Rate | £12,571 to £50,270 per year | 8% |
| Upper Rate | Above £50,270 per year | 2% |
Unlike Income Tax, National Insurance does not have a Personal Allowance in the traditional sense. However, you pay nothing on earnings below the Primary Threshold (£12,570 per year for 2025/26). The rate then jumps to 8% on earnings between the Primary Threshold and the Upper Earnings Limit (£50,270), and reduces to 2% on anything above that.
Combined marginal rates: When you combine Income Tax and National Insurance, a basic-rate taxpayer pays an effective marginal rate of 28% (20% tax + 8% NI) on income between £12,571 and £50,270. Higher-rate taxpayers pay 42% (40% tax + 2% NI) on income between £50,271 and £125,140.
PAYE Explained: How Your Employer Deducts Tax
PAYE (Pay As You Earn) is the system HMRC uses to collect Income Tax and National Insurance from employees throughout the tax year. Rather than requiring you to file a tax return and pay a lump sum, your employer calculates and deducts the correct amount of tax from each pay packet before you receive it.
How PAYE Works
HMRC issues your employer a tax code (for example, 1257L for the standard Personal Allowance of £12,570). This code tells your employer how much tax-free income you are entitled to. Your employer then uses this code to calculate the correct deductions on each payday.
The system operates cumulatively, meaning it tracks your total earnings and tax paid throughout the year. If you start a new job mid-year, your new employer will use your P45 from your previous employment to ensure the correct cumulative tax has been collected. If you do not have a P45, you may be placed on an emergency tax code until your details are confirmed with HMRC.
Your Tax Code
The most common tax code for 2025/26 is 1257L, which gives you the standard £12,570 Personal Allowance. However, your tax code may differ if you receive benefits in kind (such as a company car), have underpaid tax from a previous year, or are entitled to additional allowances such as the Marriage Allowance. You can check your tax code on your payslip or by logging into your HMRC Personal Tax Account online.
Student Loan Repayment Plans Compared
If you have a student loan, repayments are automatically deducted from your salary through PAYE once you earn above the relevant threshold. The plan you are on depends on when and where you studied. Here is a comparison of the main repayment plans for 2025/26:
| Plan | Who It Applies To | Threshold | Rate |
|---|---|---|---|
| Plan 1 | English/Welsh students before 2012, all NI and Scottish students before 1998 | £26,065 | 9% |
| Plan 2 | English/Welsh students from September 2012 | £28,470 | 9% |
| Plan 4 | Scottish students from 1998 | £32,745 | 9% |
| Plan 5 | English/Welsh students from August 2023 | £25,000 | 9% |
| Postgraduate Loan | Postgraduate Master's or Doctoral loan | £21,000 | 6% |
Repayments are calculated at 9% (or 6% for Postgraduate Loans) of your income above the relevant threshold, not on your entire salary. For example, on Plan 2 earning £35,000, you would repay 9% of £7,705 (£35,000 − £28,470) = £693.45 per year, or about £57.79 per month.
If you have both an undergraduate and postgraduate loan, both are deducted simultaneously. Student loan repayments are not tax-deductible and are separate from Income Tax and National Insurance.
Workplace Pension and Auto-Enrolment
Since the introduction of automatic enrolment, most UK employees are enrolled into a workplace pension scheme by their employer. This means a portion of your salary is contributed to a pension pot each month, reducing your take-home pay but building up savings for retirement.
Minimum Contribution Rates
The minimum total contribution is 8% of qualifying earnings, split as follows:
- Employee contribution: minimum 5% (including tax relief)
- Employer contribution: minimum 3%
Qualifying earnings for auto-enrolment purposes are those between £6,240 and £50,270 per year for 2025/26. Contributions are calculated on this band of earnings, not your entire salary.
Tax Relief on Pension Contributions
One of the biggest advantages of pension contributions is tax relief. When you contribute to a pension through your employer, you receive tax relief at your marginal rate. Under the relief at source method (used by most schemes), your pension provider claims the basic rate (20%) tax relief directly from HMRC and adds it to your pension pot. Higher-rate (40%) and additional-rate (45%) taxpayers can claim the extra relief through their Self Assessment tax return.
Under the net pay arrangement (common with salary sacrifice schemes), your pension contribution is deducted before tax is calculated, automatically providing full tax relief at your highest rate. This also reduces your National Insurance liability, making it the more efficient method for most employees.
You can opt out of auto-enrolment, but doing so means losing your employer's contribution — essentially turning down free money. Most financial advisers recommend keeping your workplace pension unless you are in severe financial difficulty.
National Living Wage and National Minimum Wage 2025/26
If you are checking your salary after tax, it is useful to know the legal minimum rates of pay in the UK. The National Living Wage (NLW) and National Minimum Wage (NMW) set the lowest hourly rate that employers can legally pay. These rates are reviewed annually and typically rise each April.
| Age Group | Hourly Rate (from April 2025) | Approx. Annual (Full-Time) |
|---|---|---|
| 21 and over (NLW) | £12.21 | £23,809 |
| 18 to 20 | £10.00 | £19,500 |
| Under 18 | £7.55 | £14,723 |
| Apprentice | £7.55 | £14,723 |
The approximate annual figures above assume a 37.5-hour working week over 52 weeks. At the National Living Wage of £12.21 per hour, a full-time worker aged 21+ would earn approximately £23,809 gross per year. After tax and National Insurance, the take-home pay on that salary would be around £20,461 — see our £24,000 salary after tax page for a close approximation.
Popular Salary Ranges
Below are some of the most commonly searched salary levels in the UK. Click any link to see a full after-tax breakdown including monthly and weekly take-home pay, tax paid, and National Insurance contributions.
Frequently Asked Questions About UK Salary After Tax
What is the average UK salary in 2025?
According to the Office for National Statistics (ONS), the median annual salary for full-time employees in the UK is approximately £35,000 as of 2025. However, this varies significantly by region, industry, and experience level. London salaries tend to be higher due to the cost of living, while the median in other regions can be considerably lower. On a £35,000 salary, your estimated take-home pay after tax and National Insurance is around £28,028 per year or £2,336 per month.
How much tax do I pay on a £30,000 salary?
On a £30,000 salary in 2025/26, you would pay £3,486 in Income Tax and £1,394.40 in National Insurance, giving you an annual take-home pay of approximately £25,119.60 (or about £2,093.30 per month). This assumes you are on the standard 1257L tax code with no student loan or pension deductions. See our detailed £30,000 after tax breakdown for the full figures.
What happens to my Personal Allowance if I earn over £100,000?
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means the £12,570 Personal Allowance is fully withdrawn at £125,140. The practical effect is a 60% marginal tax rate on income between £100,000 and £125,140 (40% Income Tax + an effective 20% from losing the allowance). Many high earners use pension contributions or Gift Aid donations to bring their adjusted income below £100,000 and preserve their full Personal Allowance.
Do I need to file a Self Assessment tax return if I am on PAYE?
Most employees on PAYE do not need to file a Self Assessment tax return, as their employer handles all tax deductions. However, you must file a return if you: earn over £150,000 per year; have untaxed income (such as rental income or freelance earnings exceeding £1,000); need to claim additional tax relief on pension contributions (higher/additional rate taxpayers); are a company director; or receive income from abroad. The deadline for online Self Assessment returns is 31 January following the end of the tax year.
How are bonuses taxed in the UK?
Bonuses are taxed in exactly the same way as your regular salary — they are subject to Income Tax and National Insurance at your marginal rate. Because bonuses are typically paid as a lump sum on top of your regular pay in a single pay period, it can appear that a higher rate of tax has been applied. In reality, HMRC treats the combined payment as if you earned that amount consistently throughout the year. If too much tax is deducted, it will be corrected cumulatively in subsequent pay periods or through your annual tax calculation.
What is salary sacrifice and how does it affect my take-home pay?
Salary sacrifice is an arrangement where you agree to reduce your gross salary in exchange for a non-cash benefit, such as increased pension contributions, cycle-to-work scheme, or electric car leasing. The benefit is that you pay less Income Tax and National Insurance on the reduced salary, and your employer also saves on employer NICs. For example, if you sacrifice £200 per month into your pension from a £40,000 salary, you save approximately £56 per month in combined tax and NI compared to taking the pay and making a personal contribution. The trade-off is a lower reported salary, which can affect mortgage applications and statutory pay calculations.
Is the Marriage Allowance worth claiming?
The Marriage Allowance allows one partner to transfer £1,260 of their Personal Allowance to the other, provided the transferor earns less than £12,570 and the recipient is a basic-rate taxpayer (earning no more than £50,270). This saves the couple up to £252 per year in Income Tax. You can backdate your claim for up to four years, potentially receiving a refund of up to £1,008. It is a straightforward claim through the HMRC website and well worth considering for eligible couples.
How can I reduce the tax I pay on my salary?
There are several legitimate ways to reduce your tax liability in the UK: maximise your pension contributions (which receive tax relief at your marginal rate); use your full ISA allowance (£20,000 per year) so investment growth and withdrawals are tax-free; claim the Marriage Allowance if eligible; make charitable donations through Gift Aid (higher-rate taxpayers can claim additional relief); use salary sacrifice for benefits like pensions, cycle-to-work, or electric vehicles; and ensure you are on the correct tax code. If you earn between £100,000 and £125,140, additional pension contributions can effectively save you 60p for every £1 contributed.