UK Net Salary Calculator
Calculate your take-home pay after tax, National Insurance contributions, and other deductions for the 2025 tax year.
Notes:
- This calculator provides estimates only and should not be used for tax filing purposes.
- The calculation uses projected 2025 tax rates and thresholds.
- State tax rates are approximate and do not account for all local taxes or special circumstances.
- Additional deductions like health insurance, retirement contributions, or other benefits are not included.
UK Income Tax and Salary Information for 2025/26
National Minimum Wage and Living Wage 2025
As of April 2025, the UK National Minimum Wage and National Living Wage rates are:
| Age Group | Hourly Rate | Weekly (40 hours) | Annual Salary |
|---|---|---|---|
| 23 and over (National Living Wage) | £11.44 | £457.60 | £23,795.20 |
| 21-22 years | £11.44 | £457.60 | £23,795.20 |
| 18-20 years | £8.60 | £344.00 | £17,888.00 |
| Under 18 | £6.40 | £256.00 | £13,312.00 |
| Apprentice | £6.40 | £256.00 | £13,312.00 |
The National Living Wage applies to workers aged 21 and over from April 2025, a change from previous years when it only applied to those 23 and over. This significant policy change aims to support younger workers with better wages.
These rates represent legally enforceable minimums that employers must pay. Many employers, particularly in high-cost areas like London, offer higher rates through voluntary "Real Living Wage" schemes.
Income Tax Rates and Bands 2025/26
For the 2025/26 tax year, UK income tax is calculated using the following bands:
| Band | Taxable Income (England, Wales & NI) | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Important note: The Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means individuals with income above £125,140 have no Personal Allowance.
Scotland Tax Rates 2025/26
| Band | Taxable Income (Scotland) | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 to £14,876 | 19% |
| Basic Rate | £14,877 to £26,561 | 20% |
| Intermediate Rate | £26,562 to £43,662 | 21% |
| Higher Rate | £43,663 to £125,140 | 42% |
| Advanced Rate | Over £125,140 | 47% |
National Insurance Contributions 2025/26
National Insurance is a key payroll deduction that funds state benefits, including the State Pension and NHS.
| Class | Income Threshold | Rate |
|---|---|---|
| Class 1 (Employees) | £12,570 to £50,270 | 10% |
| Class 1 (Employees) | Over £50,270 | 2% |
| Class 1 (Employers) | Above £9,100 per year | 13.8% |
The rates shown reflect the changes implemented from April 2025. The National Insurance threshold was previously aligned with the Personal Allowance in an effort to simplify the tax system.
Student Loan Repayments 2025/26
If you have a student loan, repayments are automatically deducted from your salary when you earn above the threshold:
| Plan Type | Threshold | Rate |
|---|---|---|
| Plan 1 (Pre-2012) | £22,015 per year | 9% of income above threshold |
| Plan 2 (2012-2023) | £27,295 per year | 9% of income above threshold |
| Plan 4 (Scotland) | £27,660 per year | 9% of income above threshold |
| Plan 5 (2023 onwards) | £25,000 per year | 9% of income above threshold |
| Postgraduate Loan | £21,000 per year | 6% of income above threshold |
Frequently Asked Questions About UK Taxes
What is National Insurance?
National Insurance is a tax on earnings that funds state benefits including the NHS, State Pension, and other welfare programs. For 2025/26, employees pay 10% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
What does my tax code mean?
Your tax code tells your employer how much tax-free income you're entitled to. The most common code for 2025/26 is 1257L, which means you can earn £12,570 before paying tax. The numbers represent your Personal Allowance (£12,570) divided by 10, and the letter relates to your personal circumstances.
How is my tax calculated?
Your tax is calculated based on your taxable income, which is your gross salary minus your personal allowance. The tax is then calculated at different rates for different income bands. For example, if you earn £30,000, you'll pay 20% tax on the amount above your personal allowance (£30,000 - £12,570 = £17,430 × 20% = £3,486).
What is the Personal Allowance?
The Personal Allowance is the amount of income you can earn before paying any tax. For 2025/26, this is set at £12,570. This allowance is reduced by £1 for every £2 earned above £100,000, meaning individuals earning over £125,140 have no Personal Allowance.
What are the differences between England, Scotland, and Wales tax rates?
While the basic structure remains the same, Scotland has its own tax bands and rates set by the Scottish Parliament, with five income tax bands instead of three. Wales has the power to set its own rates but currently uses the same rates as England. Northern Ireland uses the same rates as England.
What other deductions might affect my take-home pay?
Additional deductions can include student loan repayments, pension contributions (typically 3-5% of qualifying earnings), childcare vouchers, and other workplace benefits. These can significantly impact your final take-home pay.
How often do tax rates change?
Tax rates and thresholds are typically announced in the Chancellor's Budget statement and usually come into effect at the start of the new tax year (April 6th). The rates shown here are projected for the 2025/26 tax year.
What is the National Living Wage?
The National Living Wage is the minimum wage rate for workers aged 21 and over from April 2025. It's set at £11.44 per hour for 2025/26, which equates to around £23,795 annually for a full-time worker. This is different from the voluntary Real Living Wage, which is calculated based on actual living costs.
How does pension auto-enrollment affect my salary?
Under auto-enrollment, eligible employees (aged 22+ earning over £10,000) are automatically enrolled in a workplace pension. From 2025, the minimum contribution is 8% of qualifying earnings, with at least 3% from the employer. This reduces your take-home pay but provides tax relief and builds retirement savings.
Are bonuses taxed differently from regular salary?
Bonuses are subject to the same income tax rates as your regular salary, but they may push you into a higher tax bracket for that pay period. They're also subject to National Insurance contributions. However, some employers offer tax-efficient bonus arrangements through salary sacrifice schemes.
What tax relief is available for remote workers?
If you're required to work from home, you can claim tax relief for some household costs. For 2025/26, you can claim a flat rate of £6 per week without providing evidence of extra costs, or claim the exact amount with evidence. This relief applies only if your employer requires you to work from home, not if it's by choice.
Understanding Your UK Tax Calculation in Detail
The UK tax system is progressive, meaning you pay different rates of tax on different portions of your income. This ensures that higher earners contribute proportionally more to public finances.
Detailed Calculation Example
Let's say you earn £45,000 per year in England:
- Personal Allowance (£12,570): No tax (0%)
- Basic Rate (£12,571 to £45,000): £32,429 × 20% = £6,485.80 tax
- Total Income Tax: £6,485.80
National Insurance contributions:
- £12,570 to £45,000: £32,430 × 10% = £3,243
- Total National Insurance: £3,243
Total deductions: £9,728.80
Net annual salary: £35,271.20
Net monthly salary: £2,939.27
High Earner Example (£85,000 per year)
- Personal Allowance (£12,570): No tax
- Basic Rate (£12,571 to £50,270): £37,699 × 20% = £7,539.80
- Higher Rate (£50,271 to £85,000): £34,729 × 40% = £13,891.60
- Total Income Tax: £21,431.40
National Insurance contributions:
- £12,570 to £50,270: £37,700 × 10% = £3,770
- £50,271 to £85,000: £34,729 × 2% = £694.58
- Total National Insurance: £4,464.58
Total deductions: £25,895.98
Net annual salary: £59,104.02
Net monthly salary: £4,925.34
Important Considerations for 2025/26
- The Personal Allowance has remained frozen at £12,570 since the 2021/22 tax year, creating "fiscal drag" where inflation pushes more people into higher tax brackets
- National Insurance rates were reduced from 12% to 10% in January 2024, which remains in effect for 2025/26
- The Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £5,000
- Marriage Allowance allows you to transfer 10% of your Personal Allowance to your spouse if they earn more than you and you're a non-taxpayer
- The High Income Child Benefit Charge affects families where one parent earns over £50,000, with child benefit being fully clawed back when income reaches £60,000
- If your income is over £100,000, your Personal Allowance is reduced, creating an effective marginal tax rate of 60% between £100,000 and £125,140