PAYE Tax Calculator
Understanding exactly how much of your salary will reach your bank account after tax is essential for budgeting. The PAYE (Pay As You Earn) system applies to most employees in the UK, with income tax and National Insurance contributions (NICs) deducted automatically by your employer. A reliable PAYE tax calculator helps you forecast your take‑home pay within seconds, giving you a clear picture of your monthly or weekly income.
Use the calculator to see your net salary after all deductions for the current tax year. Customise it with your exact tax code, pension contributions, or student loan plan for a precise result.
What are the PAYE tax rates for 2025/26?
The 2025/26 tax year runs from 6 April 2025 to 5 April 2026. Below are the income tax bands and National Insurance thresholds that apply for most employees in England, Wales, and Northern Ireland. Scotland uses different income tax rates (see HMRC for details).
Income Tax
- Personal Allowance – Up to £12,570 tax‑free.
- Basic rate – 20% on income from £12,571 to £50,270.
- Higher rate – 40% on income from £50,271 to £125,140.
- Additional rate – 45% on income above £125,140.
If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 over the threshold. Once earnings reach £125,140, you lose the full allowance.
Class 1 Employee National Insurance
- Up to £12,570 – 0% (below the primary threshold).
- £12,571 to £50,270 – 8%.
- Above £50,270 – 2%.
Employers also pay secondary NICs, but employee NICs are the ones that affect your take‑home pay.
Rates are correct for the 2025/26 tax year. Tax rules can change in April 2026 following the Budget.
How to calculate your PAYE tax manually
You can work out your net salary without a calculator by following this step‑by‑step method. Assume an annual salary of £35,000 with a standard 1257L tax code (meaning a Personal Allowance of £12,570).
1. Calculate taxable income £35,000 – £12,570 = £22,430 subject to income tax.
2. Apply the income tax rate All £22,430 falls into the basic‑rate band. Tax = £22,430 × 20% = £4,486.
3. Compute National Insurance Earnings above the primary threshold: £35,000 – £12,570 = £22,430. NICs = £22,430 × 8% = £1,794.40.
4. Find take‑home pay Total deductions = £4,486 + £1,794.40 = £6,280.40. Annual net pay = £35,000 – £6,280.40 = £28,719.60. Monthly net pay = £28,719.60 ÷ 12 ≈ £2,393.30.
Using the PAYE tax calculator instantly gives you the same breakdown, even for more complex situations like bonuses, pension salary sacrifice, or student loan repayments.
How can I check my PAYE deductions are correct?
Every payslip must show your gross pay, deductions for income tax and NICs, and your tax code. If any of these look suspicious, compare them to the figures the calculator produces.
- Check your tax code. The most common code for the 2025/26 year is 1257L, which denotes the standard £12,570 allowance. If yours is different, it could indicate a second job, under‑paid tax from an earlier year, or taxable benefits. HMRC explains the meaning of each letter and number on your code.
- Look at cumulative earnings. Sometimes a change in pay period or a bonus can spike deductions in one month, but the PAYE system should even out over the year. The calculator lets you model different pay frequencies to see if the annual tax bill matches your payslip.
- Review your payslip for student loan or postgraduate loan deductions. These are separate from income tax and NICs and will appear as extra line items. You can add them in the calculator to verify the correct amounts.
If you believe you have overpaid, contact HMRC – they often issue refunds automatically via a P800 tax calculation letter, but you can also claim directly.
What else affects PAYE deductions?
Beyond income tax and NICs, several elements can alter your net pay:
- Pension contributions – If you make workplace pension contributions through a net‑pay or salary sacrifice arrangement, your taxable salary is reduced, lowering both income tax and NICs. Enter your contribution percentage in the calculator to see the full effect.
- Student loan repayments – Plan 1, Plan 2, Plan 4, and Postgraduate loans have different repayment thresholds. Deductions are taken after tax but before you receive your net wage.
- Marriage Allowance – If you or your spouse/partner earns less than the Personal Allowance, you may transfer 10% of the allowance, adjusting both tax codes.
- Benefits in kind – A company car, medical insurance, or other taxable benefits reduce your tax‑free pay through an adjusted tax code.
Whenever your circumstances change, running the numbers through a PAYE tax calculator ensures you aren’t caught off guard by a smaller‑than‑expected payslip.