UK pay guide · Last reviewed 25 July 2026
How UK take-home pay is calculated
Your take-home pay is the amount left after deductions from gross pay. For an employee, the main deductions can be Income Tax, National Insurance, workplace-pension contributions and student-loan repayments.
Start with gross pay
Gross pay is your pay before deductions. Payroll normally applies the rules for your tax code and pay frequency, so the amount on an individual payslip can differ from a simple annual estimate. Bonuses, benefits, irregular pay and changes during the tax year can also affect it.
Income Tax uses bands
Income Tax is not normally one rate on all of your earnings. The Personal Allowance and tax bands determine which parts of taxable income are taxed at each rate. Rules and bands can differ for Scottish taxpayers, and the Personal Allowance can reduce at higher incomes.
National Insurance is separate
Employee National Insurance is calculated separately from Income Tax. It depends on earnings, pay period and National Insurance category. It is therefore possible for a change in pay to affect Income Tax and National Insurance differently.
Other common deductions
Workplace pension contributions may be taken before tax, after tax with relief added by a provider, or through salary sacrifice. Student-loan deductions depend on the applicable plan and earnings. These rules mean two people with the same gross pay can receive different net pay.
Use an estimate, then check your payslip
Use the calculator to explore a yearly scenario, then compare it with current payroll information. It is not a payslip, tax calculation or advice for your personal circumstances.