UK Finance Calculator
Every deduction. Every scenario. Exact figures for 2025/26.
Your take-home pay is your gross salary minus income tax, National Insurance (NI), pension contributions, and student loan repayments. For 2025/26, the personal allowance is £12,570 — you pay no income tax on the first £12,570 of earnings. Above that, the basic rate of 20% applies up to £50,270, then the higher rate of 40% up to £125,140, and the additional rate of 45% above that.
National Insurance (employee, Class 1) is 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. If your income exceeds £100,000, your personal allowance tapers at £1 for every £2, creating a 60% effective marginal rate between £100,000 and £125,140. Scottish taxpayers pay different rates set by the Scottish Parliament.
Salary sacrifice contributions (pension, cycle-to-work, EV lease) reduce your gross for both income tax and NI. Relief-at-source pension contributions only reduce income tax. Benefits in kind (company car, private medical insurance) are added to your taxable income but are not subject to NI. Rental profit is also taxed as income but not NI.
On a £30,000 salary in 2025/26 (England, no pension, no student loan), you pay £3,486 in income tax and £1,394.40 in National Insurance, leaving a take-home pay of £25,119.60 per year (£2,093.30/month). Income tax is calculated on the £17,430 above the £12,570 personal allowance at 20%.
The personal allowance for 2025/26 is £12,570. This is the amount you can earn before paying any income tax. It has been frozen at this level since 2021/22. If your income exceeds £100,000, your personal allowance is reduced by £1 for every £2 earned above that threshold, reaching £0 at £125,140.
For 2025/26, employees pay NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. The Primary Threshold (PT) of £12,570 and Upper Earnings Limit (UEL) of £50,270 are both frozen for 2025/26. There is no NI on earnings below £12,570.
Salary sacrifice reduces your gross pay before income tax and National Insurance are calculated. For example, a £200/month pension sacrifice costs a basic-rate taxpayer only £144/month net (saving 20% income tax + 8% NI = 28%). For higher-rate taxpayers the saving is greater: 40% tax + 2% NI = 42% saving, making a £200 sacrifice cost only £116/month net.
The 60% effective marginal tax rate affects people earning between £100,000 and £125,140. In this range, every extra £2 earned causes a £1 reduction in the personal allowance. The result is that each additional £1 of income is taxed at 40% directly, plus you lose 50p of allowance which is also taxed at 40% — effectively a 60% rate. Salary sacrifice into a pension is the most effective way to reduce income below £100,000 and escape this trap.
Yes. Student loan repayments are deducted from pay above the relevant threshold. For Plan 2 loans (most graduates from 2012 onwards), repayments are 9% on earnings above £27,295 in 2025/26. On a £35,000 salary, that is 9% × (£35,000 − £27,295) = £693.45/year. Repayments show on your payslip alongside tax and NI and reduce your net pay accordingly.