PAYE Tax Calculator
See your income tax, National Insurance, and take-home pay — 2025/26 tax year
Common Questions
What is PAYE?
PAYE (Pay As You Earn) is HMRC's system for collecting income tax and National Insurance directly from your wages before you receive them. Your employer calculates the deductions each pay period based on your tax code and pays the amounts straight to HMRC.
What are the 2025/26 income tax bands?
The 2025/26 tax bands are:
- Personal Allowance: 0% on the first £12,570
- Basic Rate: 20% on £12,571 to £50,270
- Higher Rate: 40% on £50,271 to £125,140
- Additional Rate: 45% on income above £125,140
Note: the personal allowance is tapered away at £2 for every £1 earned above £100,000, creating an effective 60% marginal rate between £100,000 and £125,140.
How does my tax code affect my deductions?
Your tax code tells your employer how much tax-free income you can earn. The standard code 1257L means a £12,570 personal allowance. Codes like BR mean all income is taxed at basic rate (no allowance). K codes mean you owe extra tax (common if you have unpaid tax from a previous year). Check your payslip or HMRC's online service if you're unsure about your code.
Can I reduce my tax bill?
Yes. Salary sacrifice pension contributions and workplace benefits like cycle-to-work or childcare vouchers reduce your taxable pay, lowering both income tax and NI. Making pension contributions directly (not via salary sacrifice) qualifies for tax relief but doesn't reduce NI. Gift Aid donations also extend your basic rate band, which can keep you out of the 40% bracket.
What's the difference between gross and net pay?
Gross pay is your salary before any deductions. Net pay (take-home pay) is what lands in your bank account after income tax, National Insurance, pension contributions, and any other deductions (student loan, etc.) have been removed. This calculator shows the tax and NI deductions; other deductions like student loan repayments are not included.
Enter your salary and click calculate to see your full pay breakdown.
2025/26 Tax Rates
- Personal Allowance: £12,570
- Basic Rate (20%): up to £50,270
- Higher Rate (40%): £50,271–£125,140
- Additional Rate (45%): above £125,140
- Employee NI (8%): £12,570–£50,270
- Employee NI (2%): above £50,270
Related Calculators
What's included in this calculator
Fully updated with confirmed April 2026 tax bands, NI thresholds, and Scottish income tax rates.
See exactly how your take-home pay has changed versus the previous tax year.
Model net pay, relief at source, and salary sacrifice pension schemes with employer contributions.
Accurate calculations for England, Wales, Scotland, and Northern Ireland income tax rates.
Supports Plans 1, 2, 4, and Postgraduate loans — including multiple concurrent plans.
Calculate from annual, monthly, weekly, daily, or hourly pay figures with automatic conversion.
Supports marriage allowance transfer between spouses and civil partners.
Model childcare vouchers, cycle to work, and electric car schemes alongside pension sacrifice.
How PAYE Works in the UK
PAYE (Pay As You Earn) is the mechanism through which HMRC collects income tax and National Insurance contributions from employees. Rather than paying a lump sum at the end of the tax year, your employer deducts the estimated tax from each pay packet and forwards it directly to HMRC. The system is designed so that most employees pay exactly the right amount of tax throughout the year, with no further bill or refund needed.
Your tax code is the key to the system — it tells your employer how much tax-free income you can earn before deductions kick in. The standard code for 2025/26 is 1257L, reflecting the personal allowance of £12,570. HMRC sends your employer your tax code; if yours looks unusual, you can check and update it via your Personal Tax Account on HMRC's website.
National Insurance is a separate deduction collected alongside income tax. Employee NI for 2025/26 is 8% on earnings between £12,570 and £50,270, and 2% on anything above that. Unlike income tax, NI is calculated purely on earnings — it doesn't benefit from the same range of reliefs and allowances.