Salary Calculator
Estimate your take-home pay, income tax, and National Insurance contributions for the 2024/2025 tax year.
Calculate Your Take-Home Pay
Enter your gross annual salary to instantly see your estimated net monthly and yearly pay, including deductions for tax, National Insurance, and student loans.
Pay Estimator
See exactly what lands in your bank account.
How it Works
Understanding your salary breakdown
Apply Personal Allowance
We first deduct your tax-free Personal Allowance (£12,570) from your gross salary. This is reduced if you earn over £100,000.
Calculate Income Tax
Your remaining taxable income is split into tax bands: 20% (Basic), 40% (Higher), and 45% (Additional), and taxed accordingly.
Deduct National Insurance
We calculate employee NI contributions: 0% up to £12,570, 8% on earnings up to £50,270, and 2% on anything above.
Factor in Student Loans
If applicable, we deduct 9% of your earnings above your specific student loan plan threshold to give your final net pay.
UK Tax Bands 2024/2025
A general overview of the income tax rates and thresholds applied to earnings in England, Wales, and Northern Ireland.
| Tax Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Salary & Tax FAQ
Answers to the most frequently asked questions about UK income tax, National Insurance, and take-home pay.
UK income tax is calculated based on tax bands. For the 2024/2025 tax year, you receive a Personal Allowance of £12,570 (tax-free). Earnings between £12,571 and £50,270 are taxed at 20% (Basic Rate), £50,271 to £125,140 at 40% (Higher Rate), and anything above £125,140 at 45% (Additional Rate). The Personal Allowance is reduced by £1 for every £2 earned over £100,000.
For the 2024/2025 tax year, employees pay 0% National Insurance on earnings up to £12,570. You pay 8% on earnings between £12,571 and £50,270, and 2% on any earnings above £50,270.
Yes. If you earn above the threshold for your specific student loan plan, 9% of your income above that threshold is automatically deducted from your salary before you receive it. For example, Plan 2 deducts 9% on earnings over £27,295, while Plan 5 deducts 9% on earnings over £25,000.
The Personal Allowance is the amount of income you can earn each tax year before you start paying income tax. For 2024/2025, this is £12,570. If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 earned above this limit, meaning it drops to zero once you earn £125,140 or more.