Take-Home Pay Calculator
Estimate your net salary after UK income tax and National Insurance for the 2025/26 tax year. Applies to England, Wales, and Northern Ireland. Scottish taxpayers have different income tax bands.
Rates used: personal allowance £12,570 · basic rate 20% (up to £50,270) · higher rate 40% (up to £125,140) · additional rate 45% above £125,140. Personal allowance tapers by £1 per £2 earned above £100,000. NI: 8% on £12,570–£50,270, 2% above £50,270.
Related: Pay Rise · Salary to Hourly · Pension Calculator
How the take-home pay calculator works
UK income tax is calculated under PAYE (Pay As You Earn) using a system of bands and a personal allowance. For 2025/26, the first £12,570 of income is tax-free (the personal allowance), income from £12,570 to £50,270 is taxed at 20% (basic rate), from £50,270 to £125,140 at 40% (higher rate), and above £125,140 at 45% (additional rate). National Insurance is calculated separately, using its own thresholds: employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above that.
It is important to distinguish between your marginal tax rate — the rate applied to your next pound of income — and your effective tax rate, which is the total tax paid as a percentage of gross income. These diverge significantly at higher incomes. One notable feature of the UK system is the personal allowance taper: between £100,000 and £125,140 the allowance reduces by £1 for every £2 earned, creating an effective marginal rate of 60% in that range. Scottish taxpayers have different income tax bands set by the Scottish Parliament; this calculator applies to England, Wales, and Northern Ireland.
Frequently asked questions
What is the personal allowance for 2025/26?
The standard personal allowance for 2025/26 is £12,570 — meaning the first £12,570 of income is tax-free. However, the allowance tapers for higher earners: it reduces by £1 for every £2 earned above £100,000, and disappears entirely once income reaches £125,140. Above that threshold, all income is taxable with no personal allowance.
How is National Insurance different from income tax?
National Insurance (NI) and income tax are two separate deductions with different thresholds, rates, and purposes. NI contributions go to the National Insurance Fund, which funds the state pension, statutory sick pay, and certain NHS costs. For employees in 2025/26, Class 1 NI is charged at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Income tax is calculated cumulatively across bands starting from the personal allowance, whereas NI uses its own set of thresholds independently.
Why is there a 60% effective tax rate between £100,000 and £125,140?
Between £100,000 and £125,140, earners face an effective marginal tax rate of 60%. This happens because every additional £2 earned causes the personal allowance to reduce by £1. The result is that each extra pound earned is taxed at 40% (higher rate income tax) plus effectively another 20% on the allowance lost — combining to 60%. This makes the £100,000–£125,140 range one of the most heavily taxed in the UK income tax system.
Do Scottish taxpayers use this calculator?
No. Scotland has its own income tax bands and rates, set by the Scottish Parliament, which differ from the rest of the UK — including a starter rate, basic rate, intermediate rate, higher rate, advanced rate, and top rate. This calculator applies only to taxpayers in England, Wales, and Northern Ireland. Scottish taxpayers should use a calculator that applies Scottish income tax rates.