1. What is the UK Wage Calculator?

The UK Wage Calculator estimates your take-home pay (net pay) after deductions for income tax, National Insurance, student loan repayments, and pension contributions. It uses the latest tax rates and thresholds for the 2025-26 tax year.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your annual salary before deductions
• Income Tax — Calculated using 2025-26 tax bands and rates
• National Insurance — Calculated using Class 1 NI rates
• Student Loan — Based on your repayment plan threshold
• Pension Contributions — Percentage of salary you contribute

3. Understanding Your Payslip

Details: This calculator helps you understand how much will be deducted from your gross pay and what your actual take-home pay will be. The results show a breakdown of each deduction.

4. Using the Calculator

Tips: Enter your gross annual salary, select your student loan plan (if applicable), and enter any pension contributions as a percentage of your salary. The calculator will estimate all deductions.

5. Frequently Asked Questions (FAQ)

Q1: What are the 2025-26 tax bands?
A: Basic rate (20%): £0-£37,700; Higher rate (40%): £37,701-£150,000; Additional rate (45%): Over £150,000.

Q2: What's the personal allowance?
A: £12,570 for 2025-26 (reduces by £1 for every £2 earned over £100,000).

Q3: How is National Insurance calculated?
A: 12% on earnings between £12,570-£50,270 and 2% on earnings above £50,270.

Q4: What student loan plans are available?
A: Plan 1 (pre-2012), Plan 2 (post-2012), Plan 4 (Scotland), and Postgraduate loans.

Q5: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before tax is calculated, reducing your taxable income.