Take Home Pay Calculator

How is take home pay calculated in the UK?

Your take home pay — also called your net salary — is what remains from your gross salary after your employer has deducted PAYE income tax and National Insurance contributions (NICs). Both deductions are applied automatically through the HMRC payroll system before your salary reaches your bank account.

The calculation works in three steps. First, your personal allowance (£12,570 for 2025/26) is subtracted from your gross salary to produce your taxable income. Second, PAYE income tax is applied to that taxable income using the banded rates below. Third, Class 1 National Insurance is calculated separately — it applies to earnings above £12,570 regardless of any other allowances.

For most standard employees, these two deductions account for virtually all the difference between gross and net pay. Other items — such as pension contributions, student loan repayments, or salary sacrifice arrangements — can reduce your take-home further but are not included in this calculator.

UK tax bands explained (2026)

UK income tax is structured as a progressive banded system. You only pay the higher rate on earnings above each threshold — not on your entire salary. The following rates apply for the 2025/26 tax year (England, Wales, and Northern Ireland):

National Insurance (Class 1 employee contributions) is charged at 8% on weekly earnings between £242 and £967 (equivalent to £12,570–£50,270 annually), and 2% on anything above that. There is no personal allowance equivalent for NI — you start paying from the first pound above the primary threshold.

Scotland sets its own income tax rates through the Scottish Parliament. Scottish taxpayers pay the Scottish rates (which have more bands) instead of the UK rates shown above. This calculator uses the England / Wales / Northern Ireland rates.

Example take home salaries in the UK

To give you a benchmark, here are approximate take-home pay figures for common UK salary levels in 2025/26, based on the standard 1257L tax code with no other deductions:

Use the calculator above to get a figure specific to your own salary. These examples assume the standard tax code, no pension deductions, and England/Wales/NI rates.

Net pay vs gross pay – what's the difference?

Gross pay is your salary before any deductions — the figure your employer agrees to pay you and the number on your offer letter. Net pay (also called take-home pay) is what actually lands in your bank account after income tax, National Insurance, and any other deductions have been taken off.

The gap between the two can be substantial. For a £35,000 salary, the difference is roughly £7,500 per year — about 21% of gross pay. For a £70,000 earner, the gap grows to over £21,000 per year as the higher rate tax band kicks in.

This distinction matters for budgeting. When comparing job offers, negotiating a pay rise, or planning monthly outgoings, always work from your net figure — not the headline gross salary. Two people on the same gross salary can have different net pay depending on their tax code, pension arrangements, or student loan plan.

How to increase your take home pay

There are several legitimate ways to increase the amount you actually take home each month without needing a pay rise:

• ▸Salary sacrifice. Directing part of your pre-tax salary into a pension or cycle-to-work scheme reduces your taxable income, cutting both income tax and National Insurance. A higher-rate taxpayer saves 42p in tax and NI for every £1 they sacrifice.
• ▸Check your tax code.Millions of UK workers are on the wrong tax code, often paying more tax than necessary. Check your payslip and verify your code with HMRC via your Personal Tax Account. An emergency tax code (e.g. 1257L W1/M1) can mean you're being overtaxed each month.
• ▸Claim work expenses.If you incur allowable expenses for work that your employer doesn't reimburse — such as professional subscriptions, tools, or uniform costs — you can claim tax relief through HMRC, reducing your overall tax bill.
• ▸Marriage allowance. If you or your spouse earns below the personal allowance, you may be able to transfer £1,260 of unused allowance to the higher earner — saving up to £252 per year.
• ▸Increase your gross pay. Even a modest salary increase has a meaningful effect once deductions are applied. Use our hourly to salary calculator or overtime pay calculator to model the impact of a rate change or extra hours.

Frequently asked questions