Take-Home Pay After Tax (UK)

When you look at your payslip, you'll see your gross pay (your total earnings) at the top, followed by various deductions. The amount at the bottom – your net pay or take-home pay – is what gets paid into your account.

Income tax and National Insurance are the two main deductions that reduce your gross pay. These are calculated separately using different thresholds and rates set by HMRC. Your employer deducts these through the PAYE system before you receive your pay.

Other deductions that can reduce your take-home pay include:

• Pension contributions (workplace pension or salary sacrifice)
• Student loan repayments (if you have a student loan)
• Other voluntary deductions (charity donations, union fees, etc.)

Your take-home pay after tax will vary depending on your income level, your tax code, and which tax band your earnings fall into. Higher earners pay a higher percentage of their income in tax, but the UK uses a progressive system, so only the portion of your income above each threshold is taxed at the higher rate.

What you can do

If you want to understand exactly how your take-home pay is calculated, check your payslip to see each deduction. You can also use our calculators to estimate your take-home pay based on your gross salary. This helps you plan your finances and understand how changes to your income (like a pay rise or bonus) will affect your net pay.

If your take-home pay seems lower than expected, check your tax code – an incorrect code can result in overpaying tax. You can find your tax code on your payslip or check it online through your personal tax account on GOV.UK.

Related guides

For more detailed information about UK tax, see our UK Tax Guide. If you're wondering why your take-home pay is lower than expected, read our guide on why your take-home pay might be so low.