How UK Take-Home Pay Works in 2025/26 (Income Tax, NI, the 100k Trap)

In the UK the gap between your gross salary and the money that actually lands in your account comes down to three deductions: income tax, employee National Insurance, and, if you have one, a student loan repayment. This guide walks through the 2025/26 income tax bands for England, Wales and Northern Ireland, the separate Scottish bands, the Personal Allowance and its 100k taper, National Insurance, and the student loan plans, with a full worked example at 35,000 GBP gross.

Gross vs net: what comes out of your pay

Your gross salary is the headline figure in your contract. Your take-home pay (net pay) is what is left after deductions. For most employees the deductions through PAYE are income tax, Class 1 National Insurance, and any student loan repayment. This guide covers that core calculation. It assumes a standard tax code with the full Personal Allowance and does not include pension salary sacrifice, benefits in kind, or other income, all of which can move your final figure up or down.

The 2025/26 income tax bands (England, Wales, Northern Ireland)

Income tax is progressive: only the slice of income inside each band is taxed at that band's rate. The first 12,570 GBP is your Personal Allowance, taxed at 0%. For 2025/26 the bands for England, Wales and Northern Ireland are as follows.

Scotland sets its own income tax bands

If you live in Scotland, your earned income is taxed on the Scottish bands instead. For 2025/26 there are six rates: a 19% starter rate, a 20% basic rate, a 21% intermediate rate, a 42% higher rate, a 45% advanced rate, and a 48% top rate. The Personal Allowance and the 100k taper still apply, and National Insurance is the same across the whole UK. Choose Scotland in the calculator to switch to these bands.

Employee National Insurance

Class 1 National Insurance is charged on earnings, not on taxable income, so the Personal Allowance does not apply to it. For 2025/26 you pay 8% on earnings between 12,570 GBP and 50,270 GBP, and 2% on everything above 50,270 GBP. National Insurance is UK-wide and does not change between England and Scotland.

Student loan repayments

If you are repaying a student loan, the repayment is 9% of income above the plan threshold (6% for the Postgraduate Loan). For 2025/26 the annual thresholds are:

• Plan 1: 9% above 26,065 GBP
• Plan 2: 9% above 28,470 GBP
• Plan 4 (Scotland): 9% above 32,745 GBP
• Plan 5: 9% above 25,000 GBP
• Postgraduate Loan: 6% above 21,000 GBP

Worked example: 35,000 GBP gross in England

Take a gross salary of 35,000 GBP in England, with no student loan. The full Personal Allowance of 12,570 GBP leaves taxable income of 22,430 GBP, all inside the basic rate, so income tax is 22,430 GBP at 20% = 4,486 GBP. National Insurance is 8% of the gap between 35,000 and 12,570 GBP: 22,430 GBP at 8% = 1,794.40 GBP. Total deductions are 6,280.40 GBP, leaving a take-home of 28,719.60 GBP per year, or about 2,393.30 GBP per month. The effective rate is 17.94%.