Take Home Pay Calculator

Calculate your net take-home pay after deductions including taxes, National Insurance, pension contributions, and student loan repayments.

Income Details
£
Your percentage contribution to pension from gross pay
Leave blank to use standard tax code for the selected year
About This Calculator

This calculator estimates your take-home pay after deducting taxes, National Insurance, pension contributions, and student loan repayments.

The calculations are based on the latest available tax rates and thresholds for the selected country and tax year.

UK Tax System (PAYE)

The UK tax system uses Progressive Income Tax bands and National Insurance contributions. Tax-free Personal Allowance is £12,570 for most people (2024/25), with basic rate (20%), higher rate (40%), and additional rate (45%) tax bands.

Note: This calculator provides estimates only. For precise tax calculations, please consult with a qualified tax professional.
Tax Information
UK Tax System Explained

The UK uses a Pay As You Earn (PAYE) system where tax is deducted from your salary before you receive it. Here's how it works:

Income Tax

Income Tax in the UK is progressive, meaning you pay different rates on different portions of your income:

Band (2024/25) Taxable Income 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%

For those earning over £100,000, the Personal Allowance reduces by £1 for every £2 earned above £100,000.

National Insurance (NI)

National Insurance is a separate tax that helps pay for certain state benefits. The rates for 2024/25 are:

  • 12% on earnings between £12,570 and £50,270 per year
  • 2% on earnings above £50,270 per year
Student Loan Repayments

Student loan repayments in the UK vary based on which plan you're on:

Plan Threshold (2024/25) 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 (Northern Ireland) £25,000 per year 9% of income above threshold
Postgraduate Loan £21,000 per year 6% of income above threshold
Pension Contributions

Under most workplace pension schemes, contributions are deducted from your pre-tax pay. Auto-enrollment minimum contributions are currently 5% for employees and 3% for employers, but your employer may offer a different scheme.

Pension contributions receive tax relief at your highest income tax rate, making them an efficient way to save for retirement.

Tax Codes

Your tax code determines how much tax-free income you're entitled to. The most common tax code is 1257L, which means you have the standard Personal Allowance of £12,570.

If your tax code ends with:

  • L: You get the standard tax-free Personal Allowance
  • M: You've received a transfer of 10% of your partner's Personal Allowance
  • N: You've transferred 10% of your Personal Allowance to your partner
  • T: Your tax code includes other calculations to work out your Personal Allowance
  • 0T: Your Personal Allowance has been used up, or you've started a new job and your employer doesn't have the details they need to give you a tax code
  • BR: All your income from this job or pension is taxed at the basic rate (usually for second jobs or pensions)
  • D0: All your income from this job or pension is taxed at the higher rate
  • D1: All your income from this job or pension is taxed at the additional rate