See exactly what you'll take home after income tax, National Insurance, pension and student loan deductions.
The UK uses a progressive tax system, meaning you pay different rates on different portions of your income. The first £12,570 you earn is tax-free (your Personal Allowance). Earnings between £12,571 and £50,270 are taxed at the basic rate of 20%. The higher rate of 40% applies to earnings between £50,271 and £125,140, and the additional rate of 45% applies to income above £125,140. If you earn over £100,000, your Personal Allowance is gradually reduced by £1 for every £2 earned above this threshold.
As an employee, you pay Class 1 National Insurance on earnings above the Primary Threshold. For 2025/26, the rate is 8% on earnings between £12,570 and £50,270, and 2% on earnings above that. National Insurance helps fund your state pension, the NHS, and other state benefits.
If you have a student loan, repayments are automatically deducted from your salary once you earn above the relevant threshold. Plan 1 starts at £24,990, Plan 2 at £27,295, Plan 4 at £31,395, and Plan 5 at £25,000. The repayment rate is 9% of everything earned above the threshold. These are collected through PAYE alongside your tax and NI.
Salary sacrifice schemes (for pension, cycle-to-work, or childcare vouchers) reduce your taxable income and NI contributions, effectively giving you a pay rise. Making pension contributions also reduces your tax bill. If you're a higher-rate taxpayer, you can claim additional tax relief on pension contributions through your self-assessment tax return.