1. What is Take Home Pay?

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

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before deductions
• Income Tax — Amount deducted for UK income tax
• National Insurance — Contributions to UK social security
• Student Loan — Repayments for student loans (if applicable)
• Pension Contributions — Workplace or private pension payments

3. UK Tax Year 2025-26

Details: This calculator uses the tax rates and thresholds for the UK tax year running from 6 April 2025 to 5 April 2026. Always verify with HMRC for the most current rates.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. For accurate results, use figures from your payslip or HMRC tax code notice.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net pay?
A: Gross pay is your total salary before deductions, while net pay is what you actually receive in your bank account.

Q2: How is income tax calculated?
A: UK income tax uses a progressive system with different tax bands (Personal Allowance, Basic Rate, Higher Rate, etc.).

Q3: What National Insurance category should I use?
A: Most employees are Category A. Other categories apply to special circumstances like married women's reduced rate.

Q4: How are student loan repayments calculated?
A: Repayments are typically 9% of income above the threshold for Plan 1, 2, or 4 loans.

Q5: Are pension contributions tax-free?
A: Most workplace pension contributions are made before tax is deducted, giving you tax relief automatically.