Know Your Real Take-Home Pay

What This Site Does

Take-Home Pay Calculator is a free online tool that helps UK workers understand exactly how much money they'll receive in their bank account after all deductions from their gross salary.

Who It's For

• Job seekers comparing salaries and job offers
• Employees understanding their payslip deductions
• Workers considering a pay rise or promotion to see the real impact
• People moving to the UK to understand UK tax and National Insurance
• Anyone planning a budget based on their actual take-home income
• Students graduating and entering the workforce

How It Works

• Enter your gross salary: Your annual salary before any deductions
• Add pension contributions: Percentage you contribute (gets tax relief automatically)
• Select student loan plan: Choose your plan type if you have student loans
• Get instant results: See your monthly and annual take-home pay
• View detailed breakdown: Understand every deduction (income tax, National Insurance, pension, student loan)
• Compare scenarios: Try different salaries or pension contributions to see the impact

Accuracy: This calculator uses official UK tax rates and thresholds for the 2025-26 tax year. All calculations happen in your browser - we don't store or see your salary information.

How It Works

This calculator uses official UK tax rates and thresholds for the 2025-26 tax year to give you an accurate picture of your take-home pay.

• Enter your gross annual salary
• Add any pension contributions (automatically reduces your taxable income)
• Select your student loan plan if applicable
• Get instant monthly and annual breakdowns

UK Tax Rates 2025-26

Understanding how your salary is taxed helps you make informed financial decisions. Here are the current UK income tax rates:

National Insurance Contributions (Class 1)

As an employee, you also pay National Insurance on your earnings:

• £12,570 - £50,270: 8% of earnings in this band
• Over £50,270: 2% of earnings above this threshold

Understanding Your Payslip

Gross Pay

This is your total salary before any deductions. It's what's stated in your employment contract.

Pension Contributions

Most employers offer workplace pensions. Your contribution is taken from your gross salary before tax, which means you get tax relief automatically. For example:

• If you earn £30,000 and contribute 5% (£1,500), your taxable income becomes £28,500
• This saves you 20% (or more) on that £1,500, making pensions very tax-efficient

Student Loan Repayments

Student loan repayments are calculated as 9% of earnings above your plan's threshold:

• Plan 1: £24,990 threshold (pre-2012 England/Wales, all Northern Ireland)
• Plan 2: £27,295 threshold (2012-2023 England/Wales)
• Plan 4: £31,395 threshold (Scotland)
• Plan 5: £25,000 threshold (post-Aug 2023 England/Wales)

Take-Home Pay

This is what lands in your bank account after all deductions. It's your net salary.

Frequently Asked Questions

Why is my first paycheck different?

Your first month's pay might be lower if you start mid-month, or higher if you're on emergency tax and get a rebate later. Tax codes can take time to update.

What is a tax code?

Your tax code tells your employer how much tax-free income you get. The most common is 1257L for 2025-26, which gives you the full £12,570 personal allowance.

Can I reduce my tax bill?

Legally, yes! The most common ways are:

• Increase pension contributions (automatic tax relief)
• Salary sacrifice schemes (childcare vouchers, cycle to work)
• Claim marriage allowance if your partner doesn't use their full allowance
• Use your ISA allowance (£20,000/year tax-free savings)

What if I have multiple jobs?

Your personal allowance applies to your main job only. Second jobs are usually taxed at 20% from the first pound (tax code BR).

Do I pay tax on overtime?

Yes, overtime is taxed the same as your regular salary. You might notice higher deductions on months with overtime because you've moved into a higher tax band for that month.