What is the UK Take Home Pay?
UK take-home pay is your gross salary less Income Tax, National Insurance, pension contributions and any student loan repayment. The Personal Allowance of £12,570 is tax-free, then 20% applies to the basic rate band, 40% higher and 45% additional.
A significant trap sits between £100,000 and £125,140: the Personal Allowance is withdrawn at £1 for every £2 earned, creating an effective marginal rate of 60%.
Formula & worked example
Tax = 20% basic + 40% higher + 45% additional
NI = 8% between £12,570–£50,270, then 2%
Worked example: a £45,000 salary with a 5% pension. Pension takes £2,250, leaving £42,750. After the £12,570 allowance, £30,180 is taxable at 20% = £6,036 Income Tax. National Insurance is about £2,414. Monthly take-home lands near £2,858.
How to use this uk take home pay calculator
- Enter your gross annual salary before deductions.
- Set your pension contribution — it reduces both Income Tax and NI if salary-sacrificed.
- Select your student loan plan; Plan 2 and 5 are most common for recent graduates.
- Scotland has different Income Tax bands — this uses rest-of-UK rates.
Smart tips
- Between £100k and £125,140 your effective marginal rate is 60%. Pension contributions in that band are extraordinarily efficient.
- Salary sacrifice for pension saves National Insurance as well as Income Tax, unlike a net-pay arrangement.
- The £1,000 Personal Savings Allowance covers interest for basic-rate taxpayers, halving to £500 at the higher rate.
- Scotland has six bands with a top rate of 48% — use HMRC's Scottish rates if you live there.
- Check your tax code. An incorrect code is the most common cause of over- or under-payment.
Frequently asked questions
How much is take-home pay on £45,000 in the UK?
Roughly £2,858 a month after Income Tax, National Insurance and a 5% pension contribution.
What is the Personal Allowance for 2026?
£12,570, tapering away above £100,000 at £1 for every £2 of income, reaching zero at £125,140.
What is the 60% tax trap?
Between £100,000 and £125,140 you lose £1 of Personal Allowance for every £2 earned, producing an effective marginal rate of 60%.
Do pension contributions reduce National Insurance?
Only under salary sacrifice. Under a net-pay or relief-at-source arrangement you save Income Tax but not NI.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: GOV.UK — Income Tax rates and Personal Allowance, GOV.UK — National Insurance rates and thresholds, GOV.UK — Repaying your student loan: plan thresholds and the 9% rate. How we check these numbers.
