How much is the National Living Wage in 2025/26?

The National Living Wage for workers aged 21 and over is £12.21 per hour from April 2025. This equals approximately £23,809 per year for a full-time worker (37.5 hours per week), giving take home pay of around £20,473 after tax and National Insurance.

Updated for 2025/26 Tax Year

UK Take Home Pay Calculator

See exactly what you'll take home after income tax, National Insurance, student loan and pension deductions.

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Your Take Home Pay

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Take Home Breakdown

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How is UK Take Home Pay Calculated?

Your take home pay is your gross salary minus all mandatory deductions. In the UK, these deductions include Income Tax, National Insurance contributions (NICs), and any applicable student loan repayments or pension contributions.

The calculations on this page use HMRC's rates and thresholds for the 2025/26 tax year (6 April 2025 to 5 April 2026).

UK Income Tax Bands 2025/26

Income tax in England, Wales, and Northern Ireland is calculated using the following bands. Scotland has different rates — this calculator uses the rUK (rest of UK) bands:

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%

National Insurance Rates 2025/26

Class 1 National Insurance contributions for employees are calculated as follows:

Earnings	Rate
Up to £12,570 (Primary Threshold)	0%
£12,570 – £50,270	8%
Over £50,270	2%

Student Loan Repayment Thresholds

Student loan repayments are deducted from your salary once you earn above the threshold for your plan type. The rate is applied to earnings above the threshold only:

Plan	Threshold	Rate
Plan 1	£24,990/year	9%
Plan 2	£27,295/year	9%
Plan 4	£31,395/year	9%
Plan 5	£25,000/year	9%
Postgraduate	£21,000/year	6%

Frequently Asked Questions

What is the personal allowance for 2025/26?

The standard personal allowance is £12,570. This is the amount you can earn before paying income tax. If you earn over £100,000, your personal allowance is reduced by £1 for every £2 earned above £100,000.

How accurate is this calculator?

This calculator uses the official HMRC tax rates and thresholds for 2025/26. It provides a close estimate of your take home pay for a standard employment situation. Your actual pay may differ slightly due to factors like benefits in kind, bonus payments, or other adjustments your employer applies.

Does this include employer National Insurance?

No. This calculator shows only employee deductions — the amounts taken from your pay. Employer NI is an additional cost paid by your employer on top of your salary.

What is the £100K tax trap?

When you earn between £100,000 and £125,140, your personal allowance is reduced by £1 for every £2 earned above £100,000. This creates an effective marginal tax rate of 60% in this band, meaning you keep only 40p of every extra pound earned. Read our full guide to the £100K tax trap →

What student loan plan am I on?

Plan 1: English/Welsh students who started before September 2012, and all Northern Irish and Scottish students. Plan 2: English/Welsh students who started after September 2012. Plan 4: Scottish students from April 2021. Plan 5: Students starting courses from August 2023. Check your student loan repayments here →

How do pension contributions reduce my tax?

Workplace pension contributions are deducted before income tax is calculated. A 5% contribution on a £40,000 salary saves you £400 in tax as a basic rate taxpayer. Higher rate taxpayers save 40% — making a £2,000 pension contribution cost just £1,200. Try the salary sacrifice calculator →