1. What is Take Home Pay?

Take home pay (net salary) is the amount you receive after all deductions from your gross salary. Deductions typically include income tax, National Insurance contributions, student loan repayments, and pension contributions.

2. How the Calculator Works

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before deductions
• Income Tax — Calculated based on UK tax bands and your personal allowance
• National Insurance — Calculated based on NI thresholds and rates
• Student Loan — Depends on your repayment plan and income
• Pension Contributions — Percentage of salary you contribute

3. UK Tax System Overview

Income Tax (2025-26):

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

National Insurance (2025-26):

• 12% on £12,576-£50,268
• 2% above £50,268

4. Using the Calculator

Tips: Enter your gross annual salary in GBP, select your student loan plan (if applicable), and enter your pension contribution percentage. The calculator will estimate your take-home pay based on standard UK tax rates for 2025-26.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator accurate for all situations?
A: This provides an estimate based on standard tax codes and rates. Actual take-home pay may vary based on specific tax codes, benefits, or other deductions.

Q2: What's the difference between tax codes?
A: The standard tax code is 1257L, which gives the full personal allowance. Other codes adjust your allowance based on circumstances.

Q3: How often are student loan repayments deducted?
A: Student loan repayments are taken through payroll at the same time as tax and NI, typically monthly or weekly.

Q4: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before tax is calculated, reducing your taxable income.

Q5: What if I have multiple jobs?
A: The calculator assumes a single employment. Multiple jobs may affect your tax code and NI contributions.