Take home pay after tax: UK Income Tax, NI

The tax system in the UK is multifaceted, such as income tax, national insurance contributions, pension and other deductions. This take-home pay calculator helps you calculate your salary in just a few clicks.

You will get your take-home pay as well as hourly, daily, monthly, tax and NI contribution details based on your gross salary. So, you can check all your deductions and plan your budget and other financial decisions.

Take Home Pay

Income Tax Band UK

The UK government applies a progressive income tax system with different tax systems. There are three income tax systems for 2024, these are the basic rate (20%), the higher rate (40%), and the additional rate (45%). The standard personal allowance is £12,570, which is the amount of income on which you do not have to pay tax.

Tax Breakdown:

BandTaxable IncomeTax Rate
Personal AllowanceUp to £12,5700%
Basic Rate£12,571 to £50,27020%
Higher Rate£50,271 to £125,14040%
Additional RateOver £125,14045%

National Insurance (NI) Contributions

The UK employees are required to pay National Insurance (NI) contributions. NI contributions fund state benefits, such as the National Health Service (NHS). NI contribution rates vary for employees and self-employed individuals, there are specific limits that decide the applicable percentage.

Salary (monthly)YearlyCurrent Rate
£123 to £1,048£1476.00 to £12570.000%
£1,048 to £4,189£12570.00 to £50270.0010%
Over £4,189Over £50270.002%

Tax-free Allowances & Deductions

There are tax-free programs that benefit from tax-free allowances which can reduce your taxable income. The personal allowance is £12,570 (per year), on which you don’t have to pay any tax. However, for anything over £12,570, you are liable to pay income tax, and there are also higher and additional rates for higher incomes.

Additionally, certain deductions, such as those related to pension contributions and charitable donations, can further reduce taxable income.

Student Loan Repayment

Repayment of student loans is made through the income tax system and the amount deducted depends on your income level. It is also considered the loan is from a Student Loan Company (SLC) or a first mortgage-style loan.

Plan TypeYearly ThresholdRate
Plan 1£22,0159%
Plan 2£27,2959%
Plan 4£27,6609%
Plan 5£25,0009%
Postgraduate Loan£21,0006%

Scottish Income Tax

If you live in Scotland, you must pay tax, and income tax applies to your salary, pensions and other taxable income. You’ll still have to pay the same rate of tax on dividend income and savings interest as the rest of the UK.

Tax TypeBand (2024-25)Rate
Starter£12,571 – £14,87619%
Basic£14,877 – £26,56120%
Intermediate£26,562 – £43,66221%
Higher£43,663 – £75,00042%
Advanced£75,001 – £125,14045%
TopAbove £1,25,14048%

Note: National Insurance (NI) contribution will remain the same as the UK’s, as mentioned above.

How is Take-home pay Calculated After Tax?

The calculation for after-tax take-home pay is based on income tax, National Insurance contributions, tax-free allowances and deductions. This online take-home pay calculator, HM Revenue & Customs (HMRC) calculator or other reputable sources calculators can help you to calculate your “Take home pay after tax” in just a few clicks.

You can check your hourly, daily, weekly, monthly and yearly take-home pay which is based on 8 hours a day, 5 work days a week and 40 work hours a week. Moreover, income tax breakdown and national insurance contributions (NI) are also included in the calculation.

Conclusion

Take-home pay after tax is a complex calculation and requires income tax data, national insurance contributions, allowances and deductions. You are encouraged to use our accurate take-home pay calculator or other reliable resources. Here, you can make the right financial decisions and tackle the complexities of the UK tax landscape with confidence.

Take-home pay:

Also, check out the following annual salaries for take-home pay after tax:

Note: Take-home pay for other amounts, please – Visit here.