United Kingdom Salary Calculator
Take-Home Pay & Deductions
Salary Calculator
Calculate your net salary and take-home pay
Includes PAYE & National Insurance (Class 1)
Understanding Taxes & Deductions in United Kingdom
The United Kingdom uses a progressive income tax system with three main rates: 20% (basic rate), 40% (higher rate), and 45% (additional rate). The personal allowance of £12,570 (2024-25 tax year) means you pay no tax on income below this threshold.
In addition to income tax, employees pay National Insurance (NI) contributions. Class 1 NI is paid at 12% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
Many employees also contribute to workplace pension schemes, which can reduce your taxable income and increase your retirement savings.
Last Updated: January 1, 2025
Frequently Asked Questions
What is the personal allowance in the UK?
The personal allowance for the 2024-25 tax year is £12,570, meaning you pay no income tax on earnings below this amount.
What are National Insurance contributions?
National Insurance is a tax on earnings that funds state benefits including the NHS, state pension, and unemployment benefits.
Do I have to pay pension contributions?
Auto-enrollment means most employees are automatically enrolled in workplace pension schemes, though you can opt out.
Official Sources
Reviewed using official government publications