When you receive a job offer or see your salary quoted annually, that number is only the starting point. What actually matters is how much of it reaches your bank account — your take-home pay after income tax, National Insurance, pension contributions, and any other deductions. This guide breaks down exactly how take-home pay is calculated for UK earners in 2026.
How UK Take-Home Pay Is Calculated
- Income Tax: Calculated on income above the Personal Allowance (£12,570 in 2025/26)
- National Insurance: 8% on earnings between £12,570 and £50,270, then 2% above that
- Pension contributions: Minimum employee contribution is 5% of qualifying earnings
- Student loan repayments: Plan 2 deducts 9% of income above £27,295
Take-Home Pay Table — UK 2025/26
| Gross Annual Salary | Monthly Gross | Income Tax | NI (monthly) | Monthly Take-Home | Annual Take-Home |
|---|---|---|---|---|---|
| £20,000 | £1,667 | £124 | £62 | £1,481 | £17,772 |
| £25,000 | £2,083 | £207 | £103 | £1,773 | £21,276 |
| £30,000 | £2,500 | £290 | £148 | £2,062 | £24,744 |
| £35,000 | £2,917 | £373 | £181 | £2,363 | £28,356 |
| £40,000 | £3,333 | £457 | £214 | £2,662 | £31,944 |
| £50,000 | £4,167 | £623 | £253 | £3,291 | £39,492 |
| £60,000 | £5,000 | £952 | £271 | £3,777 | £45,324 |
| £80,000 | £6,667 | £1,619 | £279 | £4,769 | £57,228 |
| £100,000 | £8,333 | £2,286 | £281 | £5,766 | £69,192 |
For a more precise calculation use our free salary calculator.
UK Income Tax Bands 2025/26
| Income Band | Tax Rate | What This Means |
|---|---|---|
| Up to £12,570 | 0% Personal Allowance | Tax-free — everyone gets this |
| £12,571–£50,270 | 20% Basic Rate | 20p tax per £1 above Personal Allowance |
| £50,271–£125,140 | 40% Higher Rate | 40p tax per £1 in this band |
| £100,000–£125,140 | 60% effective rate | Personal Allowance withdrawn — unofficial 60% band |
| Over £125,140 | 45% Additional Rate | Top rate with no Personal Allowance |
The Hidden 60% Tax Trap at £100,000–£125,140
For income between £100,000 and £125,140, the Personal Allowance is withdrawn at £2 for every £3 earned above £100,000. Each additional pound triggers 40% income tax plus an effective 20% on the Personal Allowance lost — totalling a 60% effective marginal rate. Making pension contributions to bring taxable income below £100,000 is highly effective, delivering up to 60% tax relief on those contributions.
Take-Home Pay FAQ
What is the difference between gross and net salary?
Gross salary is your pay before any deductions — the headline figure in a job offer. Net salary is what actually lands in your bank account. For most UK earners, take-home pay is 70–85% of gross, depending on salary level and deductions.
Does the tax year matter for my take-home?
Yes — tax bands and thresholds change each April. The figures in this guide reflect the 2025/26 tax year (6 April 2025 to 5 April 2026).
Related Calculators
- Salary Calculator — Calculate your exact take-home pay
- £100k Tax Trap Calculator — Model the 60% effective rate impact
- Savings Calculator — Plan your savings from take-home pay