UK Take Home Salary Calculator | Net Pay, Tax & NI Calculator UK

Take Home Salary Calculator

Gross annual salary (£)

Bonus / Other income (£)

Region England / Wales / NI Scotland

Personal Allowance (£)

High-income PA taper (£100k+) Apply taper Do not apply

Pension input type Percentage (%) Fixed amount (£)

Pension amount

Pension arrangement Salary sacrifice Net pay Relief at source

Blind person allowance (£)

Marriage allowance Not applied Applied

Student loan plan (Plan info shown after selection) No student loan Plan 1 – Threshold £22,015 Plan 2 – Threshold £27,295 Plan 4 – Threshold £27,660 Plan 5 – Threshold £25,000 Postgraduate – Threshold £21,000

Employer NIC threshold (£)

Employer NIC rate (%)

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UK Take-Home Salary Calculator – Calculate Your Net Pay

Understanding your real take-home pay is essential when planning your monthly budget, comparing job offers, or managing your finances. This guide explains how UK salary deductions work and helps you understand exactly how your net income is calculated.

Why Your Take-Home Pay Matters

Your take-home pay is the amount that reaches your bank account after tax, National Insurance, pension contributions, and student loan repayments. Knowing this amount helps you:

• Plan rent or mortgage payments
• Create an accurate monthly budget
• Compare job offers effectively
• Understand tax and NI deductions
• Manage savings and long-term financial goals

How UK Salary Deductions Work

1. Income Tax

Income tax is charged in bands. Different portions of your income are taxed at different rates. Your personal allowance reduces the amount of income that is taxable, although it decreases once you earn more than £100,000.

2. National Insurance Contributions (NIC)

National Insurance helps fund state benefits like pensions and healthcare. It is separate from income tax and calculated using different thresholds.

3. Pension Contributions

If you contribute to a pension, your taxable income is usually reduced. Depending on the type of pension scheme (salary sacrifice, net pay, or relief at source), your deductions may vary.

Pension Contribution Methods Explained

In the UK, employers use different methods to take pension contributions from your salary. Here is a simple explanation of each option:

• Salary Sacrifice – You agree to give up a part of your salary, and your employer pays that amount directly into your pension. This reduces your taxable income, so you pay less tax and National Insurance. It is usually the most tax-efficient method.
• Net Pay – Your pension contribution is taken from your salary before tax. This means you automatically receive full tax relief, but low-income earners may not benefit if their income is below the tax threshold.
• Relief at Source – Your pension contribution is taken from your salary after tax, and the pension provider adds 20% tax relief from HMRC. Higher and additional-rate taxpayers must claim extra tax relief separately via self-assessment.

Tip: Salary Sacrifice is often the most beneficial, but the best option depends on your employer and personal circumstances.

4. Student Loan Repayments

If you have a student loan, repayments depend on your plan type. You only pay when your income passes your plan’s threshold. This includes Plan 1, Plan 2, Plan 4, Plan 5, and postgraduate loans.

Student Loan Plans Explained

The UK has different student loan repayment plans depending on when and where you studied. Repayments are taken only when your income is above the plan threshold.

• Plan 1 — For undergraduate students who started before 2012. Repayment: 9% of income above £22,015 per year.
• Plan 2 — For England/Wales students who started from 2012 onwards. Repayment: 9% of income above £27,295 per year.
• Plan 4 — For Scottish students (SAAS). Repayment: 9% of income above £27,660 per year.
• Plan 5 — For certain students who started August 2023 onwards. Repayment: 9% of income above £25,000 per year.
• Postgraduate Loan (PG) — For postgraduate loans (Master’s/PhD). Repayment: 6% of income above £21,000 per year. This is separate — if you have both UG and PG loans, you may repay both.

Note: Thresholds and rates can change. Use the calculator and select the correct plan to estimate repayments accurately.

5. Additional Allowances

Some people may qualify for extra allowances such as Marriage Allowance or Blind Person’s Allowance, helping reduce the overall tax bill.

How This Take-Home Salary Calculator Helps

The calculator provides an instant, clear breakdown that includes:

• Gross annual and monthly income
• Income tax
• National Insurance
• Student loan repayments
• Pension contributions
• Your final take-home salary

You can use it to easily compare different salaries or understand how deductions affect your net pay.

Who Should Use This Calculator?

• Employees comparing job offers
• Students with active loan repayments
• Contractors and freelancers
• Anyone planning their monthly budget
• People adjusting pension deductions

Why Accurate Salary Calculation Is Important?

With changes in tax rules and National Insurance rates, it’s important to know exactly what you're taking home. Whether you're switching jobs or planning long-term finances, accurate calculations help you make smarter decisions.

Frequently Asked Questions

How is my take-home pay calculated?

Your net pay is calculated after deducting income tax, NIC, pension contributions, and any student loan repayments.

Do pension contributions reduce tax?

Yes, depending on the type of pension scheme. Many contributions reduce the taxable portion of your income.

Why does Scotland have different tax bands?

Scotland sets its own income tax rates, so tax bands are different from the rest of the UK.

When do student loan repayments begin?

Repayments start only when you earn above your plan’s threshold.

Is this calculator updated?

Yes, it’s based on the latest available UK tax rules and thresholds.