How UK take-home pay works
Your net pay is your gross salary minus Income Tax and National Insurance (NI). Everyone gets a tax-free Personal Allowance (£12,570 for 2025/26). Income above that is taxed at 20% (basic rate), 40% (higher rate) and 45% (additional rate) as it rises.
National Insurance
Employees pay Class 1 NI of 8% on earnings between £12,570 and £50,270, and 2% on anything above that. NI is separate from Income Tax and funds the state pension and benefits.
The £100,000 trap
Once you earn over £100,000, your Personal Allowance is reduced by £1 for every £2 you earn, disappearing entirely at £125,140. This creates a high effective tax rate in that band, which this calculator accounts for.
What's not included
- Pension contributions, student loan repayments and salary sacrifice.
- Scottish income tax bands (Scotland differs from the rest of the UK).
- Benefits in kind and non-standard tax codes.