UK Salary Calculator — Free 2026
Calculate your take-home pay after income tax, National Insurance, student loan and pension deductions. Updated for the 2025/26 and 2026/27 tax years.
How It Works
- Enter your annual salary
- Choose tax year and options
- Review your take-home pay
Understanding Your UK Payslip: A Complete Guide
Whether you are starting a new job, negotiating a raise, or simply trying to budget, knowing your actual take-home pay is essential. In the UK, your gross salary is reduced by income tax, National Insurance contributions, pension deductions, and possibly student loan repayments before it reaches your bank account. This guide explains each deduction so you understand exactly where your money goes.
How UK Income Tax Works
The UK uses a progressive income tax system with four bands. For the 2025/26 tax year the rates are:
| 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% |
A key feature of UK tax is the Personal Allowance taper: for every £2 you earn above £100,000, your Personal Allowance is reduced by £1. This creates an effective 60% marginal tax rate on income between £100,000 and £125,140 — one of the highest marginal rates in the system. The allowance reaches zero at £125,140.
National Insurance Contributions (NICs)
Employee National Insurance for 2025/26 is charged at two rates:
- 8% on earnings between the Primary Threshold (£12,570/year) and the Upper Earnings Limit (£50,270/year)
- 2% on all earnings above the Upper Earnings Limit
Your employer also pays NI at 15% on earnings above the Secondary Threshold (£5,000/year for 2025/26), but this does not appear on your payslip. Use our National Insurance Calculator for a detailed breakdown.
Student Loan Repayments
If you have a student loan, repayments are deducted automatically from your salary once you earn above the plan threshold:
| Plan | Threshold (2025/26) | Rate | Who |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | Pre-2012 England/Wales, NI |
| Plan 2 | £28,745 | 9% | Post-2012 England/Wales |
| Plan 4 | £31,395 | 9% | Scotland |
| Plan 5 | £25,000 | 9% | From September 2023 |
| Postgraduate | £21,000 | 6% | Postgrad Master's/Doctoral |
Student loan repayments are not tax-deductible but are taken directly from your salary by your employer through PAYE. You can have both an undergraduate and postgraduate loan deducted simultaneously.
Workplace Pensions and Auto-Enrolment
Since 2019, all eligible UK employees are automatically enrolled into a workplace pension. The minimum total contribution is 8% of qualifying earnings, of which at least 3% comes from the employer and at least 5% from the employee. Qualifying earnings are those between £6,240 and £50,270 per year.
Pension contributions made via salary sacrifice are particularly tax-efficient: they reduce your gross pay before both income tax and National Insurance are calculated, saving you the NI as well as the income tax. This calculator supports both auto-enrolment (on qualifying earnings) and salary sacrifice (on gross salary) methods.
Key Changes for 2026/27
Several important changes take effect from April 2026:
- Dividend tax rates increase by 2% — basic rate rises to 10.75%, higher rate to 35.75%, additional rate to 41.25%
- Making Tax Digital Phase 1 — sole traders and landlords with income over £50,000 must file quarterly digital returns
- National Living Wage rises to £12.71/hour — a 4.1% increase for workers aged 21+
- Inheritance Tax reforms — new restrictions on Agricultural and Business Property Relief. See our Inheritance Tax Calculator
Frequently Asked Questions
UK income tax is progressive. For 2025/26 you pay 0% on the first £12,570 (Personal Allowance), 20% on income from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above £125,140. Your Personal Allowance reduces by £1 for every £2 earned above £100,000.
Employee National Insurance is 8% on earnings between the Primary Threshold (£12,570/year) and the Upper Earnings Limit (£50,270/year), then 2% on earnings above the Upper Earnings Limit. There is no cap on the 2% rate.
Plan 1 applies if you started before September 2012 in England/Wales or studied in Northern Ireland. Plan 2 applies if you started after September 2012 in England/Wales. Plan 4 is for Scottish students. Plan 5 applies from September 2023 onward. Postgraduate loans are separate and repaid at 6% above £21,000.
The Personal Allowance for 2025/26 is £12,570. This is the amount you can earn before paying any income tax. It has been frozen at this level since 2021/22 and is expected to remain frozen until at least 2027/28 due to the fiscal drag policy announced in the Autumn Budget.
Under auto-enrolment, the minimum employee pension contribution is 5% of qualifying earnings (of which at least 3% from the employer). Pension contributions reduce your taxable income, so higher-rate taxpayers get 40% tax relief. You can contribute up to £60,000 per year (Annual Allowance) with tax relief.
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