UK income tax is calculated using a progressive tax system with different tax bands. For the 2024-2025 tax year, you pay 0% on income up to £12,570 (personal allowance), 20% on income between £12,571 and £50,270 (basic rate), 40% on income between £50,271 and £125,140 (higher rate), and 45% on income above £125,140 (additional rate).

National Insurance (NI) is a tax on earnings that funds state benefits. For the 2024-2025 tax year, employees pay 10% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. This is a reduction from the 2023-2024 rate of 12% on the main rate.

This calculator provides a good estimate of your take-home pay based on the standard tax and National Insurance rates. However, it does not account for all possible deductions such as student loan repayments, pension contributions, or other salary sacrifice schemes.

Gross salary is your total earnings before any deductions are made. Net salary (or take-home pay) is what you actually receive after deductions for income tax, National Insurance, and any other withholdings.

This calculator uses the tax rates and thresholds for England, Wales, and Northern Ireland. Scotland has slightly different income tax rates and bands, so the results may not be accurate for Scottish taxpayers.