Take Home Pay Calculator UK 2025/26 | Free Net Salary

In the 2025/26 UK tax year (April 2025 to April 2026), the personal allowance is £12,570 — you pay no income tax on the first £12,570 you earn. After that, the basic rate is 20% on income from £12,571 to £50,270, the higher rate is 40% on income from £50,271 to £125,140, and the additional rate is 45% on income over £125,140. Your personal allowance is reduced by £1 for every £2 earned over £100,000, meaning it reaches zero at £125,140. Scotland has different rates with a starter rate of 19%, basic rate of 20%, intermediate rate of 21%, higher rate of 42%, advanced rate of 45%, and top rate of 48%.

For the 2025/26 tax year, employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 per year (the primary threshold to upper earnings limit). Above £50,270, the rate drops to 2%. If you earn below £12,570 per year, you do not pay NI. Self-employed individuals pay Class 4 NI at different rates. Employer NI is separate at 13.8% above £9,100 (the secondary threshold). Your NI contributions count towards your State Pension entitlement — you need 35 qualifying years for the full new State Pension.

The tax code 1257L is the standard tax code for 2025/26 in England and Wales. The numbers (1257) represent your tax-free personal allowance — multiply by 10 to get £12,570. The 'L' suffix means you're entitled to the standard tax-free personal allowance. Other common codes include: BR (all income taxed at basic rate, used for second jobs), D0 (all income taxed at higher rate), K codes (you owe tax from a previous year), and S codes (Scottish taxpayer). If your code includes 'W1' or 'M1', it's an emergency tax code and you should contact HMRC. Check your payslip or P60 for your current code.

Student loan repayments are deducted from your salary before you receive it. Plan 1 (pre-2012 England/Wales, all Scottish/NI loans): 9% of earnings above £24,990 per year. Plan 2 (post-2012 England/Wales): 9% of earnings above £27,295. Plan 4 (Scottish post-2012): 9% of earnings above £31,395. Plan 5 (post-2023 England): 9% of earnings above £25,000. Postgraduate Loan: 6% of earnings above £21,000. You can have both an undergraduate and postgraduate loan deducted simultaneously. Repayments are made through PAYEE and stop automatically when the loan is repaid or written off (after 25-40 years depending on plan).

Yes, pension contributions are one of the most tax-efficient ways to save. Workplace pensions under auto-enrolment use a 'net pay' arrangement — your contribution is taken before tax, reducing your taxable income. For example, if you earn £50,000 and contribute 5% (£2,500), you only pay tax on £47,500. Basic rate taxpayers effectively save 20% on contributions, higher rate taxpayers save 40%, and additional rate taxpayers save 45%. Under auto-enrolment, the minimum total contribution is 8% (5% employee, 3% employer). You can contribute up to £60,000 per year (or 100% of earnings if lower) tax-free. Salary sacrifice pension arrangements can also save on National Insurance.

Scotland has its own income tax rates and bands set by the Scottish Parliament, while National Insurance rates are the same across the UK. For 2025/26, Scottish rates are: Starter rate 19% (£12,571-£14,876), Basic rate 20% (£14,877-£26,561), Intermediate rate 21% (£26,562-£43,662), Higher rate 42% (£43,663-£75,000), Advanced rate 45% (£75,001-£125,140), and Top rate 48% (over £125,140). This means most Scottish taxpayers earning above £28,867 pay more income tax than their English counterparts. For example, on a £40,000 salary, a Scottish taxpayer pays roughly £300-500 more in income tax annually. Your tax code will start with 'S' if you're a Scottish taxpayer.

As of 2025/26, the median UK full-time salary is approximately £35,000 gross per year. On this salary with tax code 1257L, no student loan, and 5% pension contribution, a typical English/Welsh employee would take home approximately £2,280 per month or £27,360 per year. This breaks down as: £35,000 gross minus £4,486 income tax, minus £1,794 National Insurance, minus £1,750 pension = £26,970 net annually. Take-home pay varies significantly by region — London salaries average higher but living costs are also much greater. The National Living Wage for those aged 21+ is £12.21 per hour from April 2025.