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A significant trap sits between £100,000 and £125,140: the Personal Allowance is withdrawn at £1 for every £2 earned, creating an effective marginal rate of 60%.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 five 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? Read our UK tax guides on the Money Blog.