Salary Calculator 2025 26 Uk

Net Pay Calculation:

\[ \text{Net Pay} = \text{Gross Pay} - \text{Income Tax} - \text{National Insurance} - \text{Student Loan} - \text{Pension Contributions} \]

Gross Pay (GBP/year):

GBP

Student Loan Plan:

Pension Contributions (%):

Net Pay:

Income Tax:

National Insurance:

Student Loan:

Pension Contributions:

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1. How Net Pay is Calculated

The net pay is calculated by subtracting income tax, national insurance, student loan repayments, and pension contributions from your gross salary. The formula is:

\[ \text{Net Pay} = \text{Gross Pay} - \text{Income Tax} - \text{NI} - \text{Student Loan} - \text{Pension} \]

2. Income Tax Brackets 2025-26

Tax rates and thresholds:

Personal Allowance: £12,570 (0% tax)
Basic Rate (20%): £12,571 to £50,270
Higher Rate (40%): £50,271 to £125,140
Additional Rate (45%): Above £125,140

3. National Insurance Contributions

NI rates 2025-26:

Primary Threshold: £12,576/year
12% on earnings between £12,576 and £50,268
2% on earnings above £50,268

4. Student Loan Repayments

Repayment thresholds:

Plan 1: 9% on income above £22,015
Plan 2: 9% on income above £27,295
Plan 4: 9% on income above £27,660

5. Frequently Asked Questions (FAQ)

Q1: Is pension contribution deducted before tax?
A: Yes, pension contributions are deducted from your gross pay before tax and NI are calculated.

Q2: How accurate is this calculator?
A: This provides an estimate based on standard tax codes and assumes no other deductions or allowances.

Q3: Are bonuses included in gross pay?
A: Yes, include all taxable income in your gross pay figure.

Q4: What about other deductions?
A: This calculator doesn't account for things like childcare vouchers, union fees, or other voluntary deductions.

Q5: How often are tax brackets updated?
A: Tax brackets are typically updated annually in the UK Budget.