£ Salary Calculator
Annual Breakdown
How the UK Salary Calculator Works
This calculator shows you exactly what you take home from your gross salary after all mandatory deductions. It uses the official HMRC rates for the 2025/26 tax year (6 April 2025 to 5 April 2026), including income tax bands, National Insurance thresholds, student loan repayment rates, and pension contributions.
When you enter your gross annual salary, the calculator first deducts your pension contribution (if applicable), then applies income tax based on your tax region (England/Wales/NI or Scotland), calculates your employee National Insurance, and finally deducts any student loan repayment. The result is your net take-home pay, shown as annual, monthly, weekly, daily, and hourly figures.
2025/26 Income Tax Bands (England, Wales & Northern Ireland)
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Personal Allowance Taper
If you earn more than £100,000, your personal allowance is reduced by £1 for every £2 of income above £100,000. This means the personal allowance drops to zero at £125,140. Crucially, this creates a hidden 60% marginal tax rate on income between £100,000 and £125,140 — you pay 40% income tax plus effectively lose 20% of your allowance for each additional pound earned.
2025/26 Scottish Income Tax Bands
Scotland has its own income tax rates, which differ from the rest of the UK. If your tax code starts with 'S', you are taxed under Scottish rates:
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £14,876 | 19% |
| Basic Rate | £14,877 – £26,561 | 20% |
| Intermediate Rate | £26,562 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
National Insurance Rates 2025/26
Employee National Insurance contributions (NICs) for 2025/26 are:
- Primary threshold: £12,570 per year (£242/week)
- 8% on earnings between £12,570 and £50,270
- 2% on earnings above £50,270
NI is calculated on a per-pay-period basis (weekly or monthly), not annually. This means your actual NI may differ very slightly from our estimate. The difference is normally less than £10 per year.
Understanding Tax Codes
Your tax code tells your employer how much of your income is tax-free. The most common tax code is 1257L, which means you have the standard personal allowance of £12,570. Here is how to read your tax code:
- 1257L — Standard code. Multiply the number by 10 to get your allowance (£12,570).
- S1257L — Scottish taxpayer with standard allowance.
- C1257L — Welsh taxpayer with standard allowance (same rates as England for 2025/26).
- BR — All income taxed at basic rate (20%). Used for second jobs.
- D0 — All income taxed at higher rate (40%).
- 0T — No personal allowance. Often used temporarily when a P45 has not been received.
Pension Auto-Enrolment
Since 2019, most UK employees are automatically enrolled into a workplace pension. The minimum total contribution is 8% of qualifying earnings, split as:
- Employee: minimum 5% (including 1% tax relief)
- Employer: minimum 3%
Our calculator deducts employee pension contributions from your gross salary before calculating tax (assuming salary sacrifice or net pay arrangement), which reduces your tax bill. If your employer uses "relief at source" instead, the pension is deducted after tax and you receive basic rate tax relief automatically.
Student Loan Repayments
Student loan repayments are taken directly from your salary once you earn above the relevant threshold:
| Plan | Threshold (Annual) | Rate | Who |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | Pre-September 2012 (England/Wales) or NI/Scotland |
| Plan 2 | £27,295 | 9% | Post-September 2012 (England/Wales) |
| Plan 4 | £31,395 | 9% | Scotland (post-1998) |
| Plan 5 | £25,000 | 9% | From September 2023 (England) |
| Postgraduate | £21,000 | 6% | Postgraduate master's/doctoral loan |
Frequently Asked Questions
The personal allowance is £12,570. This is the amount you can earn tax-free. It reduces by £1 for every £2 earned above £100,000, reaching zero at £125,140.
For England, Wales, and Northern Ireland: Basic rate 20% (£12,571–£50,270), Higher rate 40% (£50,271–£125,140), Additional rate 45% (above £125,140). Scotland has six bands from 19% to 48%.
Employees pay 8% NI on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
Scotland has six income tax bands (19%–48%) compared to three in England. Scottish taxpayers generally pay slightly more tax on higher incomes. NI rates are the same across the UK.