1. What is the HMRC Salary Calculator?

The HMRC Salary Calculator estimates your take-home pay (net salary) after all UK tax deductions for the 2025-26 tax year. It accounts for Income Tax, National Insurance, Student Loan repayments, and Pension contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated based on 2025-26 tax bands and rates
• National Insurance — Calculated using 2025-26 NI thresholds and rates
• Student Loan — Depends on your repayment plan and income
• Pension Contributions — Percentage of salary you contribute

3. Understanding UK Tax and Deductions

Income Tax: Progressive tax system with different rates for different income bands. Personal allowance is £12,570 for 2025-26 (example value - update with actual).

National Insurance: Contributions required for state benefits. Different rates apply above different thresholds.

Student Loans: Different repayment plans have different thresholds and rates. Only repay when earning above the threshold.

4. Using the Calculator

Tips: Enter your annual gross salary before any deductions. Select your student loan plan if applicable. Include any pension contributions as a percentage of your salary.

5. Frequently Asked Questions (FAQ)

Q1: Are the tax rates accurate for 2025-26?
A: This calculator uses projected rates. Always check HMRC for official rates when available.

Q2: Does this include Scottish tax rates?
A: No, this calculator uses UK-wide rates. Scottish taxpayers have different income tax bands.

Q3: How accurate is the student loan calculation?
A: It provides an estimate based on current thresholds and rates. Actual deductions may vary slightly.

Q4: What about other deductions like workplace benefits?
A: This calculator covers standard deductions. Additional voluntary deductions would need to be subtracted separately.

Q5: Is pension contribution tax relief included?
A: Yes, pension contributions are deducted before tax calculations for workplace pensions.