Calculate Your Take Home Pay
Your Take Home Pay Breakdown
Detailed Tax Breakdown
Compare Salary Scenarios
See how different salary levels affect your take home pay with this comparison tool.
Salary Comparison
Scottish Income Tax Rates 2025/26
Scotland has its own income tax rates which differ from the rest of the UK. If you live in Scotland (determined by your main residence), you'll pay Scottish rates.
Scottish Tax Breakdown
Scottish Tax Bands 2025/26
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 - £14,876 | 19% |
| Basic Rate | £14,877 - £26,561 | 20% |
| Intermediate Rate | £26,562 - £43,662 | 21% |
| Higher Rate | £43,663 - £75,000 | 42% |
| Advanced Rate | £75,001 - £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Bonus Tax Calculator
Calculate how much of your bonus you'll actually take home. Bonuses are taxed as regular income at your marginal rate.
Bonus Tax Breakdown
UK Income Tax Rates 2025/26
Income tax in the UK is collected by HMRC through the Pay As You Earn (PAYE) system. Your employer deducts tax from your salary before you receive it. The amount of tax you pay depends on your total income and which tax band(s) you fall into.
Tax Bands for England, Wales & Northern Ireland
| 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% |
Personal Allowance Tapering
If you earn over £100,000, your personal allowance is reduced by £1 for every £2 you earn above this threshold. This means:
- At £100,000 salary, you have the full £12,570 personal allowance
- At £110,000 salary, your allowance reduces to £7,570
- At £125,140 salary, your allowance is completely eliminated
- This creates an effective 60% tax rate between £100,000 and £125,140
Important: The 60% Tax Trap
Earning between £100,000 and £125,140 means you face an effective marginal tax rate of 60% due to losing £1 of personal allowance for every £2 earned. Many higher earners use pension contributions to reduce their income below £100,000 and avoid this trap.
National Insurance Contributions 2025/26
National Insurance (NI) is a tax on earnings that funds state benefits including the State Pension, NHS, and unemployment benefits. Both employees and employers pay NI contributions.
Employee National Insurance Rates
| Earnings | NI Rate | Notes |
|---|---|---|
| Below £12,570/year | 0% | Primary Threshold |
| £12,570 - £50,270/year | 8% | Main rate (reduced Jan 2024) |
| Above £50,270/year | 2% | Upper earnings rate |
Recent NI Changes
The main employee NI rate was reduced from 12% to 10% in January 2024, and then further reduced to 8% in April 2024. This represents a significant tax cut for workers:
| Salary | Annual NI Saving | Monthly Saving |
|---|---|---|
| £30,000 | £697 | £58 |
| £40,000 | £1,097 | £91 |
| £50,000 | £1,497 | £125 |
| £60,000 | £1,508 | £126 |
Take Home Pay Examples 2025/26
Here are common UK salary examples showing approximate take home pay. These assume tax code 1257L, no pension contributions, and no student loan:
| Gross Salary | Income Tax | NI | Annual Net | Monthly Net |
|---|---|---|---|---|
| £20,000 | £1,486 | £594 | £17,920 | £1,493 |
| £25,000 | £2,486 | £994 | £21,520 | £1,793 |
| £30,000 | £3,486 | £1,394 | £25,120 | £2,093 |
| £35,000 | £4,486 | £1,794 | £28,720 | £2,393 |
| £40,000 | £5,486 | £2,194 | £32,320 | £2,693 |
| £50,000 | £7,486 | £2,994 | £39,520 | £3,293 |
| £60,000 | £11,432 | £3,194 | £45,374 | £3,781 |
| £75,000 | £17,432 | £3,494 | £54,074 | £4,506 |
| £100,000 | £27,432 | £3,994 | £68,574 | £5,714 |
| £125,000 | £42,518 | £4,494 | £77,988 | £6,499 |
Student Loan Repayments
Student loan repayments are automatically deducted from your salary once you earn above the threshold for your plan type. The repayment is calculated as a percentage of your earnings above the threshold.
Student Loan Thresholds 2025/26
| Plan Type | Annual Threshold | Rate | Who It Applies To |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | English/Welsh students before Sept 2012 |
| Plan 2 | £27,295 | 9% | English/Welsh students from Sept 2012 |
| Plan 4 | £31,395 | 9% | Scottish students |
| Plan 5 | £25,000 | 9% | English students from Aug 2023 |
| Postgraduate | £21,000 | 6% | Masters/PhD loans |
Multiple Student Loans
If you have both an undergraduate and postgraduate loan, you may have to repay both simultaneously. For example, someone earning £40,000 with Plan 2 and a Postgraduate loan would pay:
- Plan 2: 9% of (£40,000 - £27,295) = £1,143/year
- Postgraduate: 6% of (£40,000 - £21,000) = £1,140/year
- Total: £2,283/year or £190/month
Pension Contributions & Tax Relief
Pension contributions are one of the most tax-efficient ways to save. When you contribute to a workplace pension, you receive tax relief, effectively meaning the government tops up your pension.
Types of Pension Schemes
Salary Sacrifice
Your salary is reduced before tax and NI are calculated, meaning you save both income tax AND National Insurance. Most workplace pensions now use this method.
Relief at Source
Contributions are taken after tax, but the pension provider claims back basic rate tax (20%) and adds it to your pension. Higher rate taxpayers can claim additional relief through their tax return.
Tax Relief by Tax Band
| Tax Band | Tax Relief Rate | Cost of £100 Pension | Total Saved |
|---|---|---|---|
| Basic Rate (20%) | 20% | £80 | £20 |
| Higher Rate (40%) | 40% | £60 | £40 |
| Additional Rate (45%) | 45% | £55 | £45 |
| Salary Sacrifice (Basic) | 32% (20% + 12% NI) | £68 | £32 |
| Salary Sacrifice (Higher) | 42% (40% + 2% NI) | £58 | £42 |
Pension Tips for Higher Earners
- Avoid the 60% trap: If you earn between £100k-£125k, pension contributions can bring you below £100k and restore your personal allowance
- Carry forward: You can use unused allowance from the previous 3 tax years
- Annual allowance: You can contribute up to £60,000/year (or 100% of earnings if lower)
- Employer contributions: These don't count towards your personal limit but do count towards the annual allowance
How to Increase Your Take Home Pay
There are several legal ways to reduce your tax bill and increase the amount you take home each month:
1. Check Your Tax Code
Your tax code determines how much tax-free income you're entitled to. The standard code for 2025/26 is 1257L, meaning a £12,570 personal allowance. Common issues include:
- Being on an emergency tax code (BR, 0T, or W1/M1)
- Previous employer benefits still affecting your code
- Marriage allowance not being applied
- Incorrect estimated benefits in kind
2. Claim Marriage Allowance
If you're married or in a civil partnership and one partner earns less than £12,570, they can transfer £1,260 of their allowance to the higher earner. This saves up to £252 per year. You can also backdate claims for up to 4 years.
3. Use Salary Sacrifice Schemes
Many employers offer salary sacrifice for:
- Pensions: Save income tax and NI
- Cycle to Work: Save 32-42% on a bike
- Childcare vouchers: If enrolled before Oct 2018
- Electric vehicles: Very low BIK rates (2-5%)
- Additional holiday: Some employers allow this
4. Work From Home Tax Relief
If your employer requires you to work from home, you may be able to claim tax relief. The flat rate is £6 per week (£312 per year), which provides a tax saving of £62.40 for basic rate taxpayers or £124.80 for higher rate taxpayers.
5. Professional Subscriptions
If you pay for professional body memberships required for your job (e.g., ACCA, CIMA, RICS, GMC, NMC), you can claim tax relief on these costs. HMRC maintains a list of approved bodies.
6. Uniform & Clothing Allowance
If you wear a uniform or protective clothing for work and have to wash, repair or replace it yourself, you may be able to claim a flat-rate expense. Amounts vary by industry (e.g., nurses can claim £140/year).
Example: Maximizing Take Home Pay
For someone earning £50,000:
- Correct tax code: Could save £100s if wrong
- Marriage allowance: £252/year
- Salary sacrifice pension (10%): £2,400/year tax saved
- Cycle scheme (£1,000 bike): £420 saved
- WFH relief: £125/year
- Potential annual benefit: £3,000+
Frequently Asked Questions
Take home pay (net pay) is calculated by subtracting all deductions from your gross salary. The main deductions are:
- Income Tax: Based on your tax code and earnings, ranging from 0% to 45%
- National Insurance: 8% on earnings £12,570-£50,270, 2% above
- Pension: If enrolled in a workplace pension scheme
- Student Loan: If applicable, 9% above your plan threshold
- Other: Childcare vouchers, company car, etc.
Our calculator takes all these factors into account to give you an accurate estimate of your take home pay.
Several factors can cause your take home pay to be lower than expected:
- Wrong tax code: Emergency codes like BR or 0T mean more tax
- Tax code adjustment: Underpaid tax from previous years being collected
- Pension auto-enrolment: You may have been enrolled without realizing
- Benefits in kind: Company car, medical insurance, etc. are taxed
- Student loan: Repayments may have started or your plan changed
- Bonus month: Tax is calculated on an annual basis, so bonus months show higher deductions
Check your payslip for a detailed breakdown or contact HMRC if you think there's an error.
Gross salary is your total earnings before any deductions. This is the figure usually quoted in job advertisements and contracts.
Net salary (take home pay) is what you actually receive after all deductions including tax, NI, pension, and student loans.
For example, a £40,000 gross salary results in approximately £32,320 net (assuming standard tax code, no pension, no student loan) – a difference of £7,680 in deductions.
There are several legitimate ways to reduce your tax burden:
- Pension contributions: Reduce taxable income and get tax relief
- Salary sacrifice: Swap salary for benefits like pensions, bikes, or electric cars
- Marriage allowance: Transfer £1,260 allowance to higher-earning spouse
- Claim expenses: Work from home relief, professional subscriptions, uniform costs
- Use ISAs: Tax-free savings and investment returns
- Gift aid: Higher rate taxpayers can claim relief on charitable donations
Always ensure your tax code is correct and claim all allowances you're entitled to.
You pay higher rate tax (40%) on taxable income between £50,271 and £125,140. This means:
- If you earn exactly £50,270, you pay only basic rate (20%)
- If you earn £60,000, you pay 40% only on the £9,730 above £50,270
- Your "marginal rate" is the rate on your next pound earned
Note that Scottish taxpayers have different bands with rates of 19%, 20%, 21%, 42%, 45%, and 48%.
Pension contributions receive tax relief, meaning you don't pay tax on money going into your pension:
- Salary sacrifice: Contributions taken before tax is calculated – most efficient method
- Relief at source: You get automatic 20% relief; higher rate taxpayers claim extra through self-assessment
- Net pay: Full relief at your marginal rate automatically
You can contribute up to £60,000 per year or 100% of earnings (whichever is lower) and receive full tax relief. Unused allowance from the previous 3 years can be carried forward.
Pro Tips for Accurate Results
- Double-check your input values before calculating
- Use the correct unit format (metric or imperial)
- For complex calculations, break them into smaller steps
- Bookmark this page for quick future access
Understanding Your Results
Our Take Home Calculator provides:
- Instant calculations - Results appear immediately
- Accurate formulas - Based on official UK standards
- Clear explanations - Understand how results are derived
- 2025/26 updated - Using current rates and regulations
Common Questions
Is this calculator free?
Yes, all our calculators are 100% free to use with no registration required.
Are the results accurate?
Our calculators use verified formulas and are regularly updated for accuracy.
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