UK Income Tax and National Insurance Calculator: Take-Home Pay 2025/26

How UK income tax bands actually work

The personal allowance is the slice of income you can earn before any income tax is due. In 2025/26 the standard personal allowance is £12,570. Above that you pay 20 percent (the basic rate) on income up to £50,270, then 40 percent (the higher rate) up to £125,140, then 45 percent (the additional rate) on anything above. These are marginal bands, so a single pound that crosses you into the higher rate is taxed at 40 percent, not the entire amount.

For Scotland the bands and rates differ. This calculator currently uses the rest of UK bands and does not yet apply Scottish income tax. If you live and work in Scotland the actual figures will differ at most income levels.

The 100k personal-allowance taper

Once your adjusted net income crosses £100,000, your personal allowance reduces by £1 for every £2 of income above the threshold. At £125,140 the allowance is fully tapered to zero. The effect is a marginal rate of 60 percent on income between £100,000 and £125,140 once you factor in the lost allowance, which is why pension sacrifice into that band can be particularly valuable. This calculator applies the taper automatically.

National Insurance

Class 1 NI for employees is 8 percent on earnings between £12,570 and £50,270 per year, and 2 percent on earnings above £50,270. There is no NI on earnings below the primary threshold. Employer NI is separate (15 percent above the £5,000 secondary threshold) and is not deducted from your salary, but it does affect your total cost to the employer.

Pension contributions

Pension contributions reduce your taxable income at your marginal rate. If you pay £5,000 into a workplace pension via salary sacrifice and you are in the higher-rate band, you save £2,000 in income tax and another £400 in NI compared with the same amount left as salary. The calculator models this by subtracting your pension contribution from gross before applying the tax bands.

Practical ways to use this calculator

Comparing two job offers in different bands. Run the calculator with each offer at the same pension contribution and personal allowance. The difference in net is what you actually take home from the move.

Sizing a pension increase. Re-run with your current contribution and a higher target. The drop in net is smaller than the contribution amount because of relief at the marginal rate plus the NI saving on salary-sacrifice schemes.

Estimating the impact of a bonus. Run the calculator with and without the bonus added to gross. The difference shows how much of the bonus survives tax and NI.

Tax codes and how they appear on a payslip

Your tax code is HMRC's signal to your employer about how much personal allowance to apply through PAYE. The standard code in 2025/26 is 1257L, which corresponds to the £12,570 personal allowance and is used by the majority of single PAYE earners. Other letters in the code indicate special situations: K codes mean you have negative allowance because of benefits in kind, BR means all earnings are taxed at basic rate (often a second job), and emergency codes apply for new joiners before HMRC processes your starter notification. This calculator assumes the standard 1257L code; if yours is different, your actual deductions can be meaningfully larger or smaller than the figure here.

What this calculator does not include

Student loan deductions (Plan 1, Plan 2, Plan 4, Plan 5, or Postgraduate). Marriage Allowance and Married Couple's Allowance. Gift Aid carry-back claims. Pension annual allowance taper above £260,000 of threshold income. Tax codes other than 1257L. Scottish income tax. Dividend, savings, or rental income. For complex situations consult HMRC guidance or a chartered tax adviser. This calculator is for paycheck-level estimates, not for self-assessment filing.