Take-Home Pay in the UK (Salary After Tax)

What Is Take-Home Pay?

Take-home pay (also called net pay or net salary) is what you actually receive in your bank account. It's different from your gross salary, which is the amount before any deductions.

In the UK, your take-home pay is calculated by subtracting:

• Income Tax – Based on your tax band (20%, 40%, or 45%)
• National Insurance – 8% on earnings between £12,570 and £50,270, then 2% above that
• Pension contributions – Usually 5% of your salary (auto-enrolment minimum)
• Student loan repayments – 9% of earnings above the threshold for your plan

For example, if your gross salary is £30,000, your take-home pay might be around £24,000–£25,000 depending on your pension and student loan situation. Use our take-home pay calculator to see the exact breakdown for your salary.

How Take-Home Pay Is Calculated in the UK

Income Tax

UK Income Tax is calculated on your taxable income (salary minus your Personal Allowance of £12,570). For 2025/26:

• Basic rate (20%): Earnings between £12,570 and £50,270
• Higher rate (40%): Earnings between £50,270 and £125,140
• Additional rate (45%): Earnings above £125,140

Learn more about UK tax bands and how they affect your take-home pay.

National Insurance

National Insurance (NI) is calculated on your earnings above the Primary Threshold (£12,570). You pay:

• 8% on earnings between £12,570 and £50,270
• 2% on earnings above £50,270

Unlike Income Tax, NI is calculated on your gross salary before pension contributions (unless you use salary sacrifice).

Pension (Auto-Enrolment)

Most UK employees are automatically enrolled in a workplace pension. The minimum contribution is 5% of your salary (with your employer contributing at least 3%). This is deducted from your gross pay before tax, which means you get tax relief on your contributions.

If you have a salary sacrifice pension, you may save on both Income Tax and National Insurance.

Student Loan

If you have a student loan, repayments are 9% of your earnings above the threshold for your plan. The thresholds vary by plan:

• Plan 1: £22,015 per year
• Plan 2: £27,295 per year
• Plan 4: £27,660 per year
• Postgraduate Loan: £21,000 per year (6% rate)

Learn more about student loan repayments and how they affect your take-home pay.

Take-Home Pay Examples

See real examples of take-home pay for common UK salaries. These examples show annual, monthly, and weekly take-home pay after all deductions.

Use our take-home pay calculator to see the exact breakdown for any salary amount.

Use the Take-Home Pay Calculator

Our free take-home pay calculator shows you exactly how much you'll take home after all deductions. Enter your gross annual salary, pension percentage, and student loan plan to see:

• Annual, monthly, weekly, and daily take-home pay
• Breakdown of Income Tax and National Insurance
• Pension contribution amounts
• Student loan repayments (if applicable)

Calculate Your Take-Home Pay

Why Take-Home Pay Matters More Than Salary

Job Offers

When comparing job offers, the gross salary can be misleading. A £35,000 job with a 5% pension might give you less take-home pay than a £33,000 job with a 3% pension. Always calculate your take-home pay to make fair comparisons.

Pay Rises

A £5,000 pay rise doesn't mean £5,000 more in your bank account. After tax and NI, you might only see £3,500–£4,000 extra. Understanding this helps you negotiate effectively and set realistic expectations.

Overtime / Bonuses

Overtime and bonuses are often taxed at your marginal rate (the highest rate you pay). If you're in the higher rate band, a £1,000 bonus might only add £600 to your take-home pay. Use our bonus tax calculator to see the exact impact.

Pension Trade-Offs

Increasing your pension contributions reduces your take-home pay now, but you get tax relief and employer contributions. A salary sacrifice pension can actually increase your take-home pay while boosting your pension, because you save on both Income Tax and National Insurance.