How to Calculate Your UK Salary After Tax: Take-Home Pay Explained

How Your UK Salary After Tax Is Calculated

Understanding your UK salary after tax means knowing the difference between your gross pay and what actually lands in your bank account. Your employer deducts Income Tax, National Insurance, and possibly student loan repayments and pension contributions through PAYE. The result is your take-home pay.

The Key Deductions

Income Tax is charged on earnings above your Personal Allowance. For 2026/27, the allowance is £12,570. The basic rate of 20% applies to income from £12,571 to £50,270, the higher rate of 40% from £50,271 to £125,140, and the additional rate of 45% above £125,140. These rates apply in England, Wales, and Northern Ireland. Scotland has its own bands (see below).

National Insurance (NI) is separate from Income Tax. For most employees (Category A), you pay 0% on the first £12,570, 8% on earnings between £12,571 and £50,270, and 2% on anything above £50,270. NI is calculated per pay period, so monthly amounts can vary slightly.

Student loan repayments are deducted at 9% of earnings above your plan’s threshold (or 6% for a Postgraduate Loan). The thresholds for 2026/27 are: Plan 1 £26,900, Plan 2 £29,385, Plan 4 (Scotland) £33,795, Plan 5 £25,000, and Postgraduate Loan £21,000.

Pension contributions – if made via salary sacrifice – come out before tax and NI, reducing your taxable pay and increasing your take-home relative to a net-pay arrangement.

Example: £35,000 Salary

Using the standard 1257L tax code, no pension, and no student loan, a gross salary of £35,000 gives:

• Income Tax: £4,486 (20% of £22,430 above the Personal Allowance)
• National Insurance: £1,794.40 (8% of £22,430 above £12,570)
• Take-home pay: £28,719.60 per year – that’s £2,393.30 per month or £552.30 per week.

You keep about 82p of every £1 earned, with 17.9% going to tax and NI.

The Median UK Salary After Tax

According to the ONS Annual Survey of Hours and Earnings (ASHE) for April 2025, the median full-time gross annual salary is £39,039. After Income Tax and NI, the median worker takes home £31,628 per year – £2,636 per month. The effective tax rate is 19%.

National Living Wage and Minimum Wage

For 2026/27, the National Living Wage for workers aged 21 and over is £12.71 per hour. At 37.5 hours per week, that’s roughly £24,785 gross per year. After tax and NI, take-home pay is approximately £1,780 per month.

Scotland’s Different Income Tax Bands

If you live in Scotland, your Income Tax is calculated using six bands instead of three. For 2026/27:

• Starter rate: 19% on £12,571–£15,397
• Basic rate: 20% on £15,398–£27,491
• Intermediate rate: 21% on £27,492–£43,662
• Higher rate: 42% on £43,663–£75,000
• Advanced rate: 45% on £75,001–£125,140
• Top rate: 48% above £125,140

National Insurance and student loan rules are the same across the UK. On lower incomes the difference is small – about £15 more per year on £35,000 – but from around £43,660, Scottish taxpayers pay more.

Using a Take-Home Calculator

To get a precise figure for your own situation, use our take-home calculator. It applies 2026/27 rates and allows you to add student loan plans and pension contributions. You can also explore our salary articles for detailed guides on specific professions and regions.

Important Caveats

All figures here assume a single person with the standard Personal Allowance, no pension contributions, and no student loan. Actual take-home pay depends on your tax code, benefits in kind, Scottish rates, pension type, and student loan plan. Always check your payslip and official GOV.UK guidance.

For more data on typical salaries across industries, see our salary data page.