PAYE Calculator UK 2025-2026 - Calculate Your Take-Home Pay
Calculate your exact take-home pay with our comprehensive PAYE (Pay As You Earn) calculator for the 2025-2026 tax year. This free tool helps UK employees and employers instantly compute Income Tax, National Insurance contributions, and net salary based on official HMRC rates. Whether you're in England, Scotland, Wales, or Northern Ireland, our calculator provides accurate results for weekly, monthly, and annual pay calculations.
PAYE (Pay As You Earn) is the UK's system for collecting Income Tax and National Insurance contributions directly from employees' wages before they receive their pay. Employers deduct these amounts from gross salary and remit them to HMRC on behalf of their employees. The PAYE system ensures that tax obligations are met throughout the year rather than in a lump sum, making it easier for workers to manage their finances.
The amount deducted through PAYE depends on several factors including your gross salary, tax code, personal allowance, and region of residence. For the 2025-2026 tax year, the standard personal allowance is £12,570 annually, meaning you can earn this amount tax-free before Income Tax applies.
## PAYE Calculator ToolYour PAYE Calculation Results
PAYE tax calculations follow a progressive tax system where different portions of your income are taxed at different rates. The mathematical formula for calculating PAYE tax involves applying the appropriate tax rate to each band of taxable income above the personal allowance.
Basic PAYE Calculation Formula:
\[ \text{Taxable Income} = \text{Gross Salary} - \text{Personal Allowance} \]
\[ \text{Income Tax} = \sum_{i=1}^{n} (\text{Band}_i \times \text{Rate}_i) \]
\[ \text{Net Pay} = \text{Gross Salary} - \text{Income Tax} - \text{National Insurance} \]
The personal allowance is the amount you can earn before paying Income Tax. For the 2025-2026 tax year:
- Annual Personal Allowance: £12,570
- Monthly Personal Allowance: £1,048
- Weekly Personal Allowance: £242
Note that your personal allowance decreases by £1 for every £2 earned above £100,000. The formula for adjusted personal allowance is:
\[ \text{Adjusted PA} = \max\left(0, 12570 - \frac{\max(0, \text{Income} - 100000)}{2}\right) \]
| Tax Band | Taxable Income Range | Tax 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% |
Example Calculation for £35,000 salary in England:
Taxable Income = £35,000 - £12,570 = £22,430
\[ \text{Income Tax} = 22430 \times 0.20 = £4,486 \]
Scotland operates a more progressive tax system with additional bands:
| Tax Band | Taxable Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Starter Rate | £12,571 - £15,397 | 19% |
| Basic Rate | £15,398 - £27,491 | 20% |
| Intermediate Rate | £27,492 - £43,662 | 21% |
| Higher Rate | £43,663 - £75,000 | 42% |
| Advanced Rate | £75,001 - £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Wales uses the same tax bands and rates as England and Northern Ireland for the 2025-2026 tax year.
## National Insurance ContributionsNational Insurance (NI) is a separate deduction from your salary that contributes to state benefits including the State Pension, unemployment benefits, and healthcare. Employee NI contributions are calculated based on earnings above the primary threshold.
### National Insurance Rates 2025-2026| Earnings Range | Employee NI Rate | Annual Threshold |
|---|---|---|
| £0 - £12,570 | 0% | Below Primary Threshold |
| £12,571 - £50,270 | 8% | Primary Threshold to Upper Earnings Limit |
| Over £50,270 | 2% | Above Upper Earnings Limit |
National Insurance Calculation Formula:
\[ \text{NI} = (\text{Band}_1 \times 0.08) + (\text{Band}_2 \times 0.02) \]
Where:
- \(\text{Band}_1\) = Earnings between £12,570 and £50,270
- \(\text{Band}_2\) = Earnings above £50,270
- Enter Your Gross Salary: Input your annual gross salary before any deductions in pounds sterling
- Select Pay Period: Choose whether you want to see results calculated annually, monthly, or weekly
- Choose Your Region: Select England & Northern Ireland, Scotland, or Wales to apply the correct tax rates
- Select NI Category: Most employees use Category A (Standard), but select your specific category if different
- Calculate: Click the "Calculate Take-Home Pay" button to see your detailed breakdown
- Review Results: Examine your Income Tax, National Insurance, total deductions, and net take-home pay
Your tax code tells your employer how much tax-free income you're entitled to in that tax year. The most common tax code for 2025-2026 is 1257L, which represents the standard personal allowance of £12,570. The calculation works as follows:
\[ \text{Tax Code Number} = \frac{\text{Personal Allowance}}{10} \]
Example: \( \frac{12570}{10} = 1257 \) (giving tax code 1257L)
Understanding the difference between gross and net salary is crucial for financial planning:
- Gross Salary: Your total earnings before any deductions (Income Tax, National Insurance, pension contributions, etc.)
- Net Salary (Take-Home Pay): The amount you actually receive in your bank account after all deductions
Taxable income is calculated by subtracting your personal allowance from your gross salary. This is the amount on which Income Tax is calculated:
\[ \text{Taxable Income} = \max(0, \text{Gross Salary} - \text{Personal Allowance}) \]
Income Tax Calculation:
Taxable Income = £30,000 - £12,570 = £17,430
\[ \text{Income Tax} = 17430 \times 0.20 = £3,486 \]
National Insurance Calculation:
NI on earnings from £12,570 to £30,000 = £17,430
\[ \text{National Insurance} = 17430 \times 0.08 = £1,394.40 \]
Take-Home Pay:
\[ \text{Net Pay} = 30000 - 3486 - 1394.40 = £25,119.60 \text{ annually} \]
Income Tax Calculation (Multi-Band):
Starter Rate (£12,571-£15,397): \( 2827 \times 0.19 = £537.13 \)
Basic Rate (£15,398-£27,491): \( 12094 \times 0.20 = £2,418.80 \)
Intermediate Rate (£27,492-£43,662): \( 16171 \times 0.21 = £3,395.91 \)
Higher Rate (£43,663-£60,000): \( 16338 \times 0.42 = £6,861.96 \)
\[ \text{Total Income Tax} = £13,213.80 \]
National Insurance Calculation:
Band 1 (£12,571-£50,270): \( 37700 \times 0.08 = £3,016 \)
Band 2 (£50,271-£60,000): \( 9730 \times 0.02 = £194.60 \)
\[ \text{Total NI} = £3,210.60 \]
Take-Home Pay:
\[ \text{Net Pay} = 60000 - 13213.80 - 3210.60 = £43,575.60 \]
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2025-to-2026
Official HMRC guidance containing all PAYE tax rates, National Insurance thresholds, and employer information for the 2025-2026 tax year.
https://www.gov.uk/estimate-income-tax
Official government tool to estimate your Income Tax and National Insurance for the current tax year (6 April 2025 to 5 April 2026).
Understanding your PAYE calculations is essential for effective financial planning and budgeting. Knowing exactly how much Income Tax and National Insurance you pay helps you make informed decisions about salary negotiations, career changes, and financial commitments like mortgages or loans. Our PAYE calculator provides transparency into your tax obligations, helping you verify that your employer is deducting the correct amounts and enabling you to plan for changes in your income.
Regularly checking your PAYE calculations can also help you identify errors in your tax code or deductions early, potentially saving you money and avoiding complications at the end of the tax year. Whether you're considering a job offer, planning a salary increase negotiation, or simply want to understand your payslip better, this calculator provides the clarity you need.
## Additional Considerations### Student Loan RepaymentsIf you have a student loan, additional deductions will apply through PAYE once your income exceeds certain thresholds. For the 2025-2026 tax year, repayment thresholds are £26,065 for Plan 1, £28,470 for Plan 2, and £32,745 for Plan 4, with repayments calculated at 9% of income above these thresholds.
### Pension ContributionsWorkplace pension contributions reduce your taxable income, potentially lowering both your Income Tax and National Insurance. If you contribute £100 to your pension from your gross salary, you save £20 in basic rate tax (or £40 at higher rate), making pension contributions a tax-efficient way to save for retirement.
### Emergency Tax CodesIf you start a new job without a P45 from your previous employer, you may temporarily be placed on an emergency tax code (1257L W1, 1257L M1, or 1257L X). This can result in paying more tax initially, but you can reclaim overpaid tax once HMRC updates your tax code or at the end of the tax year.
Need help with other financial calculations? Visit OmniCalculator.space for a comprehensive range of free calculators covering taxes, loans, mortgages, investments, and more.