How to calculate UK take-home pay 2025/26
Your take-home pay is your gross salary minus Income Tax, National Insurance Contributions (NIC), and any pension contributions. Here's how it works:
- Step 1 — Personal Allowance: The first £12,570 is tax-free (2025/26).
- Step 2 — Income Tax: Applied progressively on taxable income above the personal allowance.
- Step 3 — National Insurance: Employee NI is 8% on earnings between £12,570 and £50,270, then 2% above.
- Step 4 — Pension: Auto-enrolment contributions reduce your taxable pay (relief at source).
- Take-home = Gross − Income Tax − NI − Pension contributions.
Income Tax bands 2025/26 (England, Wales, Northern Ireland)
- Up to £12,570 → 0% (Personal Allowance)
- £12,571 – £50,270 → 20% (Basic rate)
- £50,271 – £125,140 → 40% (Higher rate)
- Over £125,140 → 45% (Additional rate)
Note: The Personal Allowance is reduced by £1 for every £2 earned over £100,000, reaching zero at £125,140.
National Insurance 2025/26
- Employee Class 1 NI: 8% on earnings £12,570–£50,270, then 2% above.
- Self-employed Class 4 NI: 6% on profits £12,570–£50,270, then 2% above.
- Self-employed Class 2 NI: Abolished from April 2024.
Frequently asked questions
What is the personal allowance for 2025/26?
The standard Personal Allowance is £12,570. If your income exceeds £100,000, it starts to reduce (by £1 for every £2 over the threshold), becoming nil at £125,140.
How much NI does an employee pay in 2025?
Employees pay 8% NIC on weekly earnings between £242 and £967 (£12,570–£50,270 annually), and 2% on anything above. The employer also pays 13.8% on top — but this doesn't affect your take-home.
Does Scotland have different Income Tax rates?
Yes. Scotland has its own bands set by the Scottish Parliament, including a Starter rate (19%) and an Intermediate rate (21%). Use HMRC's own calculator for Scottish taxpayers for the most accurate result.
What is Making Tax Digital (MTD)?
MTD for Income Tax Self Assessment (ITSA) requires self-employed people and landlords with income over £50,000 to keep digital records and submit quarterly updates to HMRC from April 2026. Our invoice generator supports UBL 2.1 exports compatible with MTD-ready software.