Understanding Your UK Take Home Pay
Your take home pay is your gross salary minus income tax, National Insurance contributions, pension contributions, and any student loan repayments. This calculator uses the latest HMRC tax rates for the 2025-26 tax year, covering both the England/Wales/NI and Scottish tax band systems.
Income Tax Bands 2025-26
In England, Wales, and Northern Ireland, there are three tax bands above the personal allowance: Basic Rate at 20% (£12,571-£50,270), Higher Rate at 40% (£50,271-£125,140), and Additional Rate at 45% (above £125,140). Scotland has its own system with six bands ranging from 19% to 48%, making Scottish taxpayers generally pay slightly more on mid-range incomes.
The Personal Allowance Trap
If you earn between £100,000 and £125,140, your personal allowance is reduced by £1 for every £2 earned above £100,000. This creates a hidden 60% marginal tax rate in this income band. Salary sacrifice pension contributions are one of the most effective strategies to mitigate this — reducing your taxable income below the £100,000 threshold restores the full personal allowance.
National Insurance Contributions
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. NI contributes toward your State Pension entitlement, Statutory Sick Pay, and other benefits. Unlike income tax, NI does not have a personal allowance — it has a separate threshold that broadly aligns with the tax-free personal allowance.
Frequently Asked Questions
Which student loan plan am I on?▾
Plan 1 is for English/Welsh students who started before September 2012, and all Northern Irish students. Plan 2 is for English/Welsh students who started after September 2012. Plan 4 is for Scottish students. Plan 5 is for students starting from 2023/24. Check your Student Loans Company account for confirmation.
How does salary sacrifice work?▾
Salary sacrifice reduces your gross salary before tax and NI are calculated. A 5% pension contribution via salary sacrifice saves you both income tax and National Insurance on that amount. For a higher-rate taxpayer, sacrificing £100 into a pension costs only £58 in take-home pay but puts £100 into your pension.
Do I pay Scottish tax if I work in England but live in Scotland?▾
Your tax region is determined by where you live, not where you work. If you live in Scotland, you pay Scottish income tax rates regardless of where your employer is based. Your tax code will start with 'S' to indicate Scottish rates. Similarly, Welsh residents have codes starting with 'C'.
Calclypso Editorial Team
Tax calculations verified against HMRC 2025-26 rates. Last updated: April 2026. This calculator is for estimation purposes. For official calculations, refer to HMRC's PAYE tools.