Our take home pay calculator applies official HMRC rates and thresholds for the 2025/26 tax year (6 April 2025 to 5 April 2026). Every calculation runs entirely in your browser — no data is sent to any server. Below is a complete breakdown of how each deduction is calculated.
Income Tax
UK income tax is charged on earnings above the personal allowance. We apply the following bands in order:
| 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% |
Personal Allowance Taper
For gross income above £100,000, the personal allowance is reduced by £1 for every £2 of income over £100,000. This creates an effective 60% marginal tax rate between £100,000 and £125,140. Our calculator models this taper automatically. Learn more in our £100K tax trap guide.
Scottish Income Tax
Scottish taxpayers have different bands. Our Scotland calculator applies the Scottish rates set by the Scottish Government, including the starter, intermediate, and advanced rate bands.
Source: HMRC Income Tax Rates and Bands
National Insurance Contributions
Employees pay Class 1 National Insurance on earnings above the primary threshold:
| Earnings | Rate |
|---|---|
| Up to £12,570 (primary threshold) | 0% |
| £12,571 – £50,270 (upper earnings limit) | 8% |
| Above £50,270 | 2% |
Self-employed workers pay Class 2 and Class 4 NI at different rates. Our self-employed calculator handles these automatically.
Source: HMRC National Insurance Rates
Student Loan Repayments
If you have a student loan, repayments are deducted from your salary above the relevant threshold:
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 (pre-2012 England/Wales, all Scotland/NI) | £24,990/year | 9% |
| Plan 2 (post-2012 England/Wales) | £27,295/year | 9% |
| Plan 4 (Scotland post-2012) | £31,395/year | 9% |
| Plan 5 (from 2023 onwards) | £25,000/year | 9% |
| Postgraduate loan | £21,000/year | 6% |
Multiple plans can apply simultaneously. Our calculator supports selecting any combination of plans. Source: Student Loan Repayment Thresholds
Pension Contributions
Our calculator supports both salary sacrifice and net pay pension schemes. With salary sacrifice, your gross salary is reduced before tax and NI are calculated, providing maximum tax efficiency. With a relief-at-source scheme, contributions come from net pay and basic rate tax relief is applied automatically.
The default auto-enrolment contribution rate is 5% of qualifying earnings (£6,240 to £50,270). You can adjust the percentage or enter a fixed monthly amount. See our salary sacrifice calculator for a detailed comparison.
Other Deductions
Our full calculator also accounts for:
- Bonus payments — taxed as additional income in the pay period (bonus tax calculator)
- Overtime — added to gross pay before all deductions (overtime calculator)
- Child benefit charge — the High Income Child Benefit Charge for earners above £60,000 (child benefit calculator)
- Marriage allowance — £1,260 personal allowance transfer between spouses (marriage allowance calculator)
Calculation example: On a £50,000 gross salary with no student loan or pension, the calculation is: Personal allowance £12,570 (0% tax) + £37,430 at 20% = £7,486 income tax. NI: £37,430 at 8% = £2,994. Total deductions: £10,480. Take home: £39,520/year or £3,293/month. See full breakdown.
Limitations
Our calculators provide accurate estimates for the vast majority of UK employees, but they do not account for every possible scenario. Results may vary from your actual payslip if you have:
- Benefits in kind (company car, private medical, etc.)
- Multiple employments or directorships
- Non-standard tax codes (BR, D0, NT, K codes, week 1/month 1)
- Gift Aid donations affecting your tax bands
- Enterprise Investment Scheme or Venture Capital Trust tax relief
For complex situations, we recommend consulting a qualified accountant or contacting HMRC.
Sources
- HMRC — Income Tax Rates and Bands 2025/26
- HMRC — National Insurance Rates and Categories
- GOV.UK — Repaying Your Student Loan
- GOV.UK — Workplace Pensions
- ONS — Annual Survey of Hours and Earnings
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