Take-Home Pay Calculator
Calculate your UK take-home pay after income tax and National Insurance. See what you'll actually receive each month.
Updated for 2025/26 tax year
Your Salary
Common salaries:
Your Take-Home Pay
Running a Limited Company?
As a director, you can optimize your salary/dividend mix to keep more. Try our Director's Tax Calculator for Ltd company owners.
Director's Tax CalculatorFrequently Asked Questions
Common questions about calculating your UK take-home pay
Understanding Your Take-Home Pay
Your take-home pay is what you actually receive after deductions. For UK employees, the main deductions are:
- Income Tax — 20% basic rate, 40% higher rate, 45% additional rate
- National Insurance — 8% on earnings between £12,570-£50,270, 2% above
- Pension — Your chosen contribution percentage
Tax Thresholds 2025/26
- Personal Allowance: £12,570
- Basic Rate (20%): £12,571 to £50,270
- Higher Rate (40%): £50,271 to £125,140
- Additional Rate (45%): Over £125,140
Disclaimer: This calculator provides estimates for illustration. Your actual take-home may differ based on student loans, benefits in kind, and other factors. Consult a tax professional for advice.
How This Calculator Works
The calculator takes your annual gross salary and applies three layers of deductions in order to arrive at your net take-home pay:
1. Pension Contributions (If Applicable)
Your chosen pension contribution percentage is deducted from gross salary first. Pension contributions reduce your taxable income, so they effectively provide tax relief. A 5% contribution on a £50,000 salary saves £2,500 from taxable income.
2. Income Tax
Income tax is calculated on your taxable income (gross minus pension) using the 2025/26 bands: 0% on the first £12,570 (personal allowance), 20% on income up to £50,270, 40% on income up to £125,140, and 45% on income above that.
3. Employee National Insurance
Employee NI is charged at 8% on earnings between £12,570 and £50,270, then 2% on all earnings above £50,270. NI is calculated on your taxable income (after pension deductions).
The calculator does not currently account for student loan repayments, benefits in kind, or the personal allowance taper above £100,000. For directors of limited companies, consider using the Salary vs Dividend Calculator for a more complete picture.
Worked Example: £50,000 Salary
An employee earns £50,000 gross with a 5% pension contribution. Here is the full deduction breakdown:
Income Tax Calculation
National Insurance Calculation
The 5% pension contribution saves £500 in income tax (the £2,500 would have been taxed at 20%). Without the pension deduction, take-home would be £38,940 but with no pension savings. The pension effectively costs £2,000 of take-home for £2,500 of pension savings.
When to Use This Calculator
Evaluating a Job Offer
Convert a gross salary offer into the actual monthly amount that will land in your bank account, so you can budget realistically.
Negotiating a Pay Rise
See how much of a raise you actually keep after tax. A £5,000 raise as a basic rate taxpayer adds roughly £3,100 to your annual take-home.
Pension Contribution Planning
Experiment with different pension contribution levels to find the right balance between take-home pay today and retirement savings.
Budgeting and Financial Planning
Know your exact monthly income to create accurate household budgets, mortgage affordability assessments, and savings plans.
Important Considerations for 2025/26
Frozen Tax Thresholds (Fiscal Drag)
The personal allowance (£12,570) and basic rate threshold (£50,270) have been frozen since 2021/22 and are expected to remain frozen until at least 2027/28. As wages rise with inflation, more of your income is pushed into higher tax bands - an effect known as fiscal drag.
Student Loan Repayments
This calculator does not include student loan deductions. Plan 1 borrowers repay 9% on earnings over £24,990. Plan 2 borrowers repay 9% over £27,295. Plan 4 (Scotland) borrowers repay 9% over £31,395. Plan 5 borrowers (from September 2023) repay 9% over £25,000.
Pension Auto-Enrolment
Most employees are automatically enrolled into a workplace pension. The minimum total contribution is 8% of qualifying earnings (between £6,240 and £50,270), with the employer paying at least 3% and the employee at least 5%. You can opt out, but you lose the employer contribution.
The £100,000 Trap
Earners between £100,000 and £125,140 face an effective 60% marginal tax rate because the personal allowance is withdrawn at £1 for every £2 earned above £100,000. Increasing pension contributions to bring taxable income below £100,000 can be highly tax-efficient.
Scottish Income Tax Rates
If you live in Scotland, different income tax rates and bands apply. Scotland has a six-band system with a starter rate of 19% and a top rate of 48%. This calculator uses the rest-of-UK rates. Scottish taxpayers should adjust their expectations accordingly.
Related Resources
Director's Salary Guide 2025/26
The optimal salary for company directors and how it interacts with dividends and employer NI.
Salary vs Dividend Calculator
For company directors: find the most tax-efficient way to extract money from your limited company.
National Insurance for Directors
How the cumulative NI method works differently for company directors versus regular employees.
How Much Salary Should I Pay Myself?
Factors to consider when setting your director salary level.
Pension Contributions Guide
Maximise tax relief on pension contributions through your limited company.
Employer NI Calculator
Calculate your company's employer NI cost on your salary.