What deductions come out of my salary?

Your gross salary is reduced by income tax, National Insurance contributions, workplace pension contributions (if applicable), and student loan repayments (if applicable). The remainder is your take-home pay.

How is take-home pay calculated in the UK?

Take-home pay is your gross salary minus income tax (based on your tax code and tax bands), minus employee National Insurance (8% and 2%), minus pension contributions (typically 5% for auto-enrolment), and minus any student loan repayments.

What is a tax code and how does it affect my pay?

A tax code tells your employer how much tax-free income you're entitled to. The most common code is 1257L, which means you have a Personal Allowance of £12,570. Different codes apply if you have benefits in kind, multiple jobs, or owe tax from a previous year.

Take-Home Pay Calculator 2025-26

Calculate your net pay after income tax, National Insurance and pension deductions. See weekly, monthly and annual take-home pay.

Last updated: April 2026 · Source: GOV.UK — Estimate your Income Tax

Annual Gross Salary

Pension Contribution (%)

Student Loan

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Your take-home pay is what remains after all statutory deductions are subtracted from your gross salary. In the UK, these deductions include income tax (based on your tax code and banding), employee National Insurance (8% and 2%), workplace pension contributions (typically 5% for auto-enrolment) and student loan repayments (if applicable).

This calculator applies deductions in the correct order: pension contributions are deducted before tax if made via salary sacrifice, or after tax if made via net-pay arrangement. Student loan repayments are calculated at 9% of income above the relevant plan threshold (6% for Postgraduate Loans).

The result shows your monthly and annual take-home pay, with a full breakdown of each deduction. You can toggle pension contributions, student loan plans, and bonus payments to see how they affect your net income.

Example: £40,000 salary, Plan 2 student loan, 5% pension

Gross salary: £40,000
Pension (5% salary sacrifice): −£2,000
Taxable income: £38,000
Income tax: £5,086 (£25,430 at 20%)
Employee NI: £1,874.40
Student loan Plan 2 (9% above £27,295): £1,143.45
Take-home pay: £29,896.15/year (£2,491.35/month)

Source: GOV.UK — Estimate your Income Tax

Frequently Asked Questions

What deductions come out of my salary?: Your gross salary is reduced by income tax, National Insurance contributions, workplace pension contributions (if applicable), and student loan repayments (if applicable). The remainder is your take-home pay.
How is take-home pay calculated in the UK?: Take-home pay is your gross salary minus income tax (based on your tax code and tax bands), minus employee National Insurance (8% and 2%), minus pension contributions (typically 5% for auto-enrolment), and minus any student loan repayments.
What is a tax code and how does it affect my pay?: A tax code tells your employer how much tax-free income you're entitled to. The most common code is 1257L, which means you have a Personal Allowance of £12,570. Different codes apply if you have benefits in kind, multiple jobs, or owe tax from a previous year.