On a £45,000 salary with a 5% pension, UK take-home pay is £34,119.60 a year, or £2,843.30 a month. That is £656.15 a week, after £6,036 income tax, £2,594.40 National Insurance and the £2,250 pension.
What this calculates
Enter your salary, where you pay tax, your tax code, your pension share and any student loan. This works out the income tax and National Insurance on your pay, the loan repayments and the pension, and what is left by the year, month and week, with a table of the tax in each band. The rates are for the 2026-27 tax year, from GOV.UK, with the Scottish bands from the Scottish Government and the loan thresholds from GOV.UK. They are reviewed each April.
The formula
Income tax
tax = (salary − pension − allowance) through the bandsNational Insurance
NI = 8% × pay between £12,570 and £50,270 + 2% × pay above £50,270Take-home
take-home = salary − pension − tax − NI − student loanIn England, Wales and Northern Ireland the bands are 20% on the first £37,700 of taxable pay, 40% up to £125,140 and 45% above. The allowance comes from your tax code and, on the standard code, is reduced by £1 for every £2 over £100,000.
Worked example
Divide by 12 for £2,843.30 a month and by 52 for £656.15 a week. The same pay in Scotland pays £6,128.57 income tax, which is £92.57 more.
When to use it, and the mistakes to avoid
Use it to check a job offer, compare a pay rise with its tax, see what a bigger pension contribution costs you in take-home pay, or find out what a student loan takes.
The mistakes that cost the most:
- Treating the gross salary as what you take home. Tax, NI and loans can take a quarter or more.
- Forgetting that NI is charged on the salary before your pension. A pension through a net pay scheme cuts your tax, not your NI.
- Using the wrong tax code. A code other than 1257L changes your allowance, so use the one on your payslip.
- Ignoring the allowance cut above £100,000. It creates a 60% band.
- Using a Scottish salary on English bands. Choose Scotland if that is where you pay tax.
FAQ
How is UK take-home pay worked out?
Start with your salary, take off your pension, then income tax on what is left above your tax-free allowance, National Insurance on your whole salary above £12,570, and any student loan repayments. On £45,000 with a 5% pension that leaves £34,119.60 a year, or £2,843.30 a month.
What does the tax code 1257L mean?
The number is a tenth of your tax-free allowance, so 1257 means £12,570 a year. The letter L means you get the standard allowance. Other codes change it: 0T gives no allowance, BR taxes everything at 20%, and a K code adds an amount to your taxable pay. Your code is on your payslip and from HMRC.
Why does my pay seem to drop between £100,000 and £125,140?
The personal allowance falls by £1 for every £2 you earn over £100,000 and is gone at £125,140. The lost allowance is taxed at 40%, so each extra £1,000 of pay in that range is taxed like £1,500, an effective rate of 60%. A pension contribution before tax brings your pay back down and can restore some allowance.
How are Scottish rates different?
Scotland sets its own income tax bands and rates, with six bands from 19% to 48%, so a Scottish taxpayer pays more than the rest of the UK on higher pay and a little less on lower pay. National Insurance and student loan rules are the same across the UK. Choose Scotland above to use the Scottish bands.
How are student loans repaid, and are the figures exact?
You repay 9% of what you earn over your plan's threshold (6% over £21,000 for a postgraduate loan), taken from your pay with your tax. This calculator works on the year; your employer works it each pay period and rounds down, so a payslip can differ by a few pounds. Check the thresholds on GOV.UK.