Wages After Tax UK (2025/26)

Use our hourly wage calculator or take-home pay calculator to estimate your wages after tax.

Understanding wages after tax UK helps you know what you'll actually take home from your salary. This guide explains the main deductions and how they affect your pay.

What Are Wages After Tax?

Wages after tax UK (also called take-home pay or net pay) is the amount you receive after deductions for:

  • Income Tax - Based on your tax code and income level
  • National Insurance (NI) - Social security contributions
  • Pension contributions - If you're enrolled in a workplace pension
  • Student loan repayments - If you have a student loan

How Income Tax Works

Income Tax in the UK is charged at different rates depending on your income:

  • Personal Allowance: The first portion of your income is tax-free (varies by tax year)
  • Basic Rate: 20% on income above the personal allowance up to the higher rate threshold
  • Higher Rate: 40% on income above the higher rate threshold
  • Additional Rate: 45% on income above the additional rate threshold

For detailed calculations, use our tax calculator or salary calculator to see exact take-home pay.

National Insurance Deductions

National Insurance is deducted separately from Income Tax. The rate depends on:

  • Your earnings level
  • Your NI category (most employees are Category A)
  • Whether you're above the NI threshold

Example: Wages After Tax Calculation

For someone earning £30,000 per year (2025/26 estimates):

  • Gross Salary: £30,000
  • Income Tax: Approximately £3,486
  • National Insurance: Approximately £2,396
  • Take-Home Pay: Approximately £24,118 per year

Note: These are approximate figures. Your actual deductions depend on your tax code, pension contributions, and other factors.

Factors That Affect Your Take-Home Pay

  • Tax Code: Your tax code determines your personal allowance and any adjustments
  • Scotland Rates: Scotland has different Income Tax bands and rates
  • Pension Contributions: Workplace pensions reduce your taxable income
  • Student Loans: Repayments are deducted if you're above the threshold
  • Benefits in Kind: Company cars, health insurance, etc. can affect your tax

Use Our Calculators

Get accurate estimates of your wages after tax:

Frequently Asked Questions

What are wages after tax UK?

Wages after tax UK refers to your take-home pay (net pay) after deductions for Income Tax and National Insurance. This is the amount you actually receive in your bank account, as opposed to your gross salary before deductions.

How much tax is deducted from wages in the UK?

The amount of tax deducted depends on your income level and tax code. Income Tax is charged at different rates: 0% on the personal allowance, 20% on basic rate income, 40% on higher rate income, and 45% on additional rate income. National Insurance is also deducted separately.

What is the difference between gross and net pay?

Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after Income Tax, National Insurance, pension contributions, and student loan repayments are deducted.

Do wages after tax include pension deductions?

Yes, if you're enrolled in a workplace pension, your pension contributions are deducted from your gross pay before tax. This can reduce your taxable income and increase your take-home pay compared to post-tax pension contributions.