Monthly Breakdown
| Item | Annual | Monthly | Weekly |
|---|
UK Income Tax Bands (2025/26)
Your Personal Allowance is the amount you can earn each year before paying Income Tax. For most people this is £12,570 (tax code 1257L). The allowance is reduced by £1 for every £2 you earn above £100,000, disappearing entirely once your income reaches £125,140.
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
These rates apply to England, Wales, and Northern Ireland:
What Does Your Tax Code Mean?
Your tax code tells your employer how much tax-free pay you're entitled to. It's made up of numbers (the Personal Allowance divided by 10) and a letter.
| Code | Meaning |
|---|---|
1257L | : |
BR | All income taxed at Basic Rate (20%). |
D0 | All income taxed at Higher Rate (40%). |
D1 | All income taxed at Additional Rate (45%). |
0T | : |
K | Negative allowance (you owe tax on an amount higher than your pay). |
NT | No tax to pay. |
The letter suffix indicates your entitlement status: L = basic Personal Allowance, M = marriage allowance transferred in, N = marriage allowance transferred out, T = HMRC needs to review your code.
National Insurance (Class 1 Employee)
National Insurance contributions are deducted from your pay to qualify you for the State Pension and other benefits. The rates for 2025/26 are:
| Earnings Level | NI Rate |
|---|---|
| Up to £12,570 per year | 0% |
| £12,571 – £50,270 | 12% |
| Over £50,270 | 2% |
Note: NI is calculated per pay period, not annually. This calculator uses an annualised approximation.
Student Loan Repayment Plans
Student loan repayments are calculated as 9% of earnings above a plan-specific threshold. You only repay when your income exceeds the threshold, and you'll stop once the loan is fully repaid (or after 30/40 years depending on plan).
| Plan | Annual Threshold | Repayment Rate | Details |
|---|---|---|---|
| Plan 1 | £22,015 | 9% | Pre-2012 loans (England & Wales). Written off after 25 years. |
| Plan 2 | £27,295 | 9% | 2012 - 2023 loans. Written off after 30 years. Interest varies by income. |
| Plan 4 | £31,395 | 9% | Scottish loans. Written off after 30 years (or when you turn 65). |
| Plan 5 | £25,000 | 9% | New from August 2023 for English students. Written off after 40 years. |
Select the plan that applies to you. If you're unsure, check with the Student Loans Company.
Pension Contributions & Tax Relief
Workplace pension contributions are usually calculated on your qualifying earnings (or your full salary, depending on the scheme). This calculator applies your chosen percentage to your full gross salary.
Relief at Source: Your pension provider claims basic-rate tax relief (20%) from HMRC and adds it to your pension pot. Your contribution is deducted from your net (after-tax) pay. The tax relief is added automatically.
Net Pay Arrangement: Your pension contribution is deducted from your gross pay before.
How Take-Home Pay Is Calculated
Your take-home pay (net pay) is calculated by starting with your gross annual salary and subtracting the following deductions in order:
- Pension contribution:
- Income Tax based on your Personal Allowance and tax bands
- National Insurance at 12% and 2% above the thresholds
- Student Loan repayment (9% above your plan's threshold)
Monthly figures use a standard divisor of 12. Weekly figures use 52. Daily figures assume a 5-day working week (260 working days per year).