Take-Home Pay Calculator
See your net income after income tax, National Insurance, and student loan repayments. Supports England, Scotland, Wales & NI with 2025/26 rates.
How UK income tax works
UK income tax is calculated on a progressive basis. Everyone gets a tax-free Personal Allowance of £12,570 for the 2025/26 tax year. Income above this is taxed at increasing rates: 20% basic rate, 40% higher rate, and 45% additional rate.
National Insurance contributions (NI) are deducted separately at 8% on earnings between £12,570 and £50,270, and 2% on earnings above that. Scotland has its own income tax bands with a starter rate of 19% and intermediate rate of 21%.
If you earn over £100,000, your Personal Allowance is reduced by £1 for every £2 earned above that threshold, creating an effective 60% tax rate in the £100,000–£125,140 range.
Frequently asked questions
- What is the Personal Allowance for 2025/26?
- The tax-free Personal Allowance is £12,570 for the 2025/26 tax year. This means you pay no income tax on the first £12,570 of earnings. However, if you earn over £100,000, your allowance is reduced by £1 for every £2 above that threshold.
- How are student loan repayments calculated?
- Student loan repayments are deducted as a percentage of earnings above a threshold. Plan 1: 9% above £24,990/year. Plan 2: 9% above £27,295/year. Plan 4 (Scotland): 9% above £31,395/year. Postgraduate loan: 6% above £21,000/year. You can have both an undergraduate and postgraduate plan active simultaneously.
- Why is Scottish income tax different?
- Scotland sets its own income tax rates and bands. For 2025/26, Scotland has a starter rate (19%), basic rate (20%), intermediate rate (21%), higher rate (42%), advanced rate (45%), and top rate (48%). National Insurance rates are the same across the UK.
- What's the effective tax rate?
- Your effective tax rate is the total percentage of your gross salary that goes to tax and NI combined. It's lower than your marginal rate because only portions of your income are taxed at each band. For example, someone earning £50,000 has an effective rate of around 25%, even though their marginal rate is 40%.
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