United Kingdom Salary Calculator
Take-Home Pay & Deductions
Salary Calculator
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Includes PAYE & National Insurance (Class 1)
Understanding Taxes & Deductions in United Kingdom
The UK's tax system works on a progressive scale with three main rates: 20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate. The good news is you get a personal allowanceof £12,570 for the 2024-25 tax year—this means the first £12,570 you earn is completely tax-free.
On top of income tax, you'll also pay National Insurance (NI). This funds things like the NHS, state pension, and unemployment benefits. Class 1 NI works out to 12% on earnings between £12,570 and £50,270, then drops to just 2% on anything above that.
Most UK employees are automatically enrolled in workplace pension schemes through auto-enrollment. These contributions come out before tax, which can help lower your tax bill while building your retirement pot.
Last Updated: January 1, 2026
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