Take-home pay calculator

Your take-home pay is what is left after income tax, National Insurance, and any pension or student loan deductions. This calculator shows each one separately, so you can see where the money actually goes rather than just the total.

It handles the three UK income tax positions properly: England and Northern Ireland, Wales, and Scotland — which has six tax bands where the rest of the UK has three. It also covers all five student loan plans and the three ways a workplace pension can be operated, which is the single most common reason a calculator disagrees with a payslip.

Common examples

Gross, before any deductions.

Optional. A job offer, or your salary after a rise — the result shows how much of the difference you actually keep.

Scottish income tax depends on where you live, not where your employer is. Scotland has six tax bands; the rest of the UK has three.

Pension and student loan

This changes the answer. Salary sacrifice cuts National Insurance too; the others do not. If you are unsure, check your payslip or ask your employer.

A postgraduate loan is repaid alongside an undergraduate plan, not instead of it.

How to use the take-home pay calculator

  1. Enter your gross annual salary Before any deductions. If you are paid hourly, total your hours first and multiply by your rate.
  2. Choose where you live Scottish income tax is decided by where you live, not where your employer is. Scottish taxpayers have an S prefix on their tax code.
  3. Add your pension, and its type Salary sacrifice reduces National Insurance as well as tax; a net pay arrangement reduces tax only; relief at source reduces neither at source. The type changes the answer, and it is on your payslip.
  4. Add your student loan plan Your plan depends on where and when you studied. A postgraduate loan is repaid alongside an undergraduate plan, not instead of it.
  5. Read the breakdown The chart shows what proportion of your salary each deduction takes, and the workings show the arithmetic band by band.

Worked examples

Common questions

Why does this not match my payslip exactly?

This is a full-year estimate on a standard tax code. Real payroll runs cumulatively each pay period against your actual code, so small differences are normal. Large differences usually mean a non-standard tax code, a taxable benefit such as a company car, a mid-year pay change, or a pension operating differently from the type selected.

What is the 60% tax trap?

Between £100,000 and £125,140 the personal allowance is withdrawn at £1 for every £2 earned. That makes the effective marginal rate about 60%, or 62% with National Insurance — higher than the rate paid by someone earning £200,000. In Scotland it reaches about 67.5%.

How is Scotland different?

Scotland has six income tax bands from 19% to 48%. Below roughly £33,500 a Scottish taxpayer pays slightly less than the rest of the UK; above it, more. Scotland cannot change National Insurance, which produces a band between £43,663 and £50,270 where 42% tax and 8% National Insurance apply together.

Which pension type should I choose?

Check your payslip. If your pension is deducted before tax and your taxable pay is lower than your gross, it is a net pay arrangement or salary sacrifice. Salary sacrifice also reduces the pay National Insurance is charged on, which is why it saves more. Your employer can tell you which scheme they run.

Does it include employer National Insurance?

No. Employer National Insurance is a cost to your employer, not a deduction from your pay, so it does not affect your take-home figure.

What about bonuses?

Add the bonus to your salary to see the annual effect. Be aware that in the month a bonus is paid, National Insurance and student loan are worked out on that period alone, so the deduction can be larger than the annual figures suggest — and it is not refunded afterwards.

Is my tax code assumed?

Yes. The calculation assumes the standard personal allowance with no adjustments. A different code — from a second job, underpaid tax being collected, or a taxable benefit — will change your actual deductions.

Guides on this subject

Figures on this page are checked against primary sources and dated. They are not legal, tax or financial advice.

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