Wondering where your money goes? Our free UK salary calculator for the 2025/26 tax year instantly reveals your true take-home pay. See exactly how much you'll pay in Income Tax, National Insurance, Pension, and Student Loans in seconds.
Get an instant, accurate breakdown of your salary in four simple steps:
See how take-home pay and deductions change at different salary levels. This chart uses your current pension and student loan settings.
Your payslip contains key information that determines your final pay. This guide breaks down every component for the 2025/2026 tax year, helping you understand exactly where your money goes.
Gross Pay is your total, headline salary before any deductions are made. Net Pay (or take-home pay) is the amount you actually receive in your bank account after all deductions have been subtracted. This calculator is the ultimate tool for converting your gross to net pay.
Pay As You Earn (PAYE) is the system used to collect Income Tax. For 2025/26, most people have a Personal Allowance of £12,570, which is the amount you can earn tax-free. Any income above this is taxed in progressive bands. It's important to note this allowance shrinks by £1 for every £2 you earn over £100,000.
| Band | 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% |
These contributions fund state benefits like the NHS and State Pension. For the 2025/26 tax year, as an employee (paying Class 1 NI), you are charged:
Your contributions to a workplace pension are taken from your gross pay. This provides immediate tax relief because it reduces your taxable income. It is one of the most efficient ways to save for retirement while lowering your current tax bill.
If you have a student loan, repayments are automatically deducted once your earnings exceed the threshold for your specific plan. Our calculator handles all plans, including Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate Loans, and correctly calculates deductions if you have multiple plans.
The most common tax code for the 2025/26 tax year is 1257L. This code indicates that you are entitled to the standard Personal Allowance of £12,570, which is the amount you can earn before you start paying Income Tax.
Your standard Personal Allowance of £12,570 is reduced by £1 for every £2 you earn over £100,000. This is known as the 'personal allowance taper' and means your allowance becomes zero if you earn £125,140 or more. Our calculator automatically applies this taper for you.
The Scottish Parliament has devolved power to set its own Income Tax rates and bands. Scotland uses a different set of bands and rates compared to the rest of the UK, which can result in Scottish residents paying a different amount of tax. Our calculator applies the correct rates when you select 'Scotland'.
Pension contributions are typically deducted from your gross salary before income tax is calculated. This lowers your 'taxable income', meaning you pay tax on a smaller portion of your earnings. This provides immediate tax relief and is a very efficient way to save for retirement.
If you have multiple student loan plans (e.g., Plan 2 and a Postgraduate Loan), you will make repayments for each plan simultaneously, provided your income is above each plan's specific repayment threshold. Our calculator correctly calculates these combined deductions according to HMRC rules.