UK Salary Calculator
Calculate your take-home pay after tax, National Insurance, student loan, and pension contributions
Your Details
Your Take-Home Pay
Based on 2024/25 tax year rates and thresholds
Understanding Your Salary Breakdown
Your salary breakdown shows how your gross pay is converted to take-home pay after various deductions. Here's what each component means:
- Gross Salary: Your total earnings before any deductions.
- Tax-Free Allowance: The portion of your income that is not subject to income tax (£12,570 for most people in 2024/25).
- Income Tax: Tax paid on your earnings above the personal allowance, with different rates for different income bands.
- National Insurance: Contributions that qualify you for certain benefits and the State Pension.
- Student Loan: Repayments towards your student loan, which vary based on your plan type and income.
- Pension Contribution: Money paid into your pension scheme, which reduces your taxable income.
- Net Salary: Your take-home pay after all deductions.
- Effective Tax Rate: The percentage of your gross income that goes to tax, NI, and student loan repayments.
UK Tax Rates and Thresholds (2024/25)
Income Tax
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Note: The Personal Allowance decreases by £1 for every £2 earned over £100,000, reaching £0 at £125,140.
National Insurance
| Band | Earnings | Rate |
|---|---|---|
| Lower Earnings Limit | Up to £12,570 | 0% |
| Main Rate | £12,571 to £50,270 | 12% |
| Upper Earnings Rate | Over £50,270 | 2% |
Student Loan Repayment Thresholds
| Plan | Annual Threshold | Rate |
|---|---|---|
| Plan 1 | £22,015 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 4 (Scotland) | £27,660 | 9% |
| Plan 5 (Scotland) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Tax Planning Tips
Understanding how your salary is taxed can help you make informed decisions about your finances. Here are some tax planning tips:
- Maximize Pension Contributions: Contributions to your pension reduce your taxable income, potentially lowering your income tax and National Insurance.
- Use Salary Sacrifice: Arrangements like salary sacrifice for pension contributions or cycle-to-work schemes can reduce your taxable income.
- Utilize ISAs: Individual Savings Accounts (ISAs) allow you to save or invest up to £20,000 per year tax-free.
- Marriage Allowance: If you're married or in a civil partnership, you may be able to transfer £1,260 of your Personal Allowance to your partner, reducing their tax by up to £252.
- Tax-Free Childcare: You can get up to £2,000 per child per year towards childcare costs if you're eligible.
For personalized tax planning advice tailored to your specific circumstances, consider consulting with a professional tax advisor or accountant.
Need Help with Tax Planning?
Our team of expert accountants can provide personalized guidance for your tax planning, helping you maximize your take-home pay legally and efficiently.