Calculate your take-home pay after Income Tax (PAYE) and National Insurance. Updated for the 2025/26 tax year.
The UK uses a progressive PAYE (Pay As You Earn) system where you pay a higher rate only on income above each band threshold — not on your entire salary. Your employer deducts tax and National Insurance automatically from your pay before you receive it.
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
| Earnings | Rate |
|---|---|
| Up to £12,570/year | 0% |
| £12,571 – £50,270/year | 8% |
| Over £50,270/year | 2% |
Student loan repayments are taken automatically through PAYE at 9% (Plans 1, 2, 4 and 5) or 6% (Postgraduate) on earnings above your plan's threshold. Plan 2 (most common, started university from 2012): repayments begin at £27,295/year. Plan 1: threshold is £24,990/year. Plan 4 (Scotland): £31,395/year.
Pension contributions under a workplace auto-enrolment scheme are usually made before tax (salary sacrifice), reducing your taxable income and your National Insurance liability. Entering your pension percentage in the calculator above reflects this tax-advantaged position. The minimum auto-enrolment contribution is 5% employee + 3% employer.
If you earn over £100,000, your personal allowance reduces by £1 for every £2 above £100,000. At £125,140, the personal allowance is zero, creating an effective 60% marginal tax rate on income between £100,000 and £125,140. Making pension contributions can restore your personal allowance.
Scottish taxpayers pay different income tax rates set by the Scottish Parliament. Scotland has 6 bands including a 19% starter rate and a 21% intermediate rate. The calculator above uses England, Wales and Northern Ireland rates. Scottish residents should use the 2025/26 Scottish rates when filing their self-assessment.