UK PAYE Explained: Tax Bands, National Insurance and Take-Home Pay
PAYE spreads your tax across the year, but the payslip rarely shows the working. This guide walks through the bands so you can check the maths yourself.
What is the Pay As You Earn (PAYE) Calculator?
This calculator uses UK income tax and employee National Insurance for England, Wales and Northern Ireland for the 2025/26 tax year (6 April 2025 to 5 April 2026): a personal allowance of £12,570, basic rate 20% on taxable income up to £50,270, higher rate 40% up to £125,140, and additional rate 45% above that. The personal allowance tapers by £1 for every £2 earned above £100,000, reaching zero at £125,140. Employee National Insurance (Class 1) is 8% on earnings from £12,570 to £50,270 and 2% above £50,270. Scotland sets its own income tax bands, so Scottish taxpayers will get a different income tax figure. Pension contributions, student loan repayments, benefits in kind and tax code adjustments are not included, so treat the result as an estimate. Note on the source: the original tools-en page this tool replaces modelled South African PAYE (SARS tables, rebates and UIF); this hub version follows the brief and uses UK HMRC bands instead, with every rate labelled here so the basis is never hidden.
How to use it
- Enter your gross annual salary before tax.
- Click Calculate PAYE to see income tax, National Insurance and take-home pay.
- Compare the annual and monthly figures when budgeting.
Worked example
On a £40,000 salary in 2025/26, the personal allowance is £12,570, taxable income is £27,430, income tax at 20% is £5,486, National Insurance at 8% on £27,430 is £2,194.40, annual take-home pay is £32,319.60, and monthly take-home pay is £2,693.30.
What is the take-home pay on a £40,000 salary in 2025/26?
Income tax is £5,486 and employee National Insurance is £2,194.40, leaving annual take-home pay of £32,319.60, or £2,693.30 a month. The bands used are the 2025/26 England, Wales and Northern Ireland rates: £12,570 personal allowance, 20% to £50,270, 40% to £125,140, 45% above, with National Insurance at 8% from £12,570 to £50,270 and 2% above. Pension, student loan and tax code adjustments are not included.
Frequently asked questions
What is PAYE?
Pay As You Earn: your employer deducts income tax and National Insurance from your pay each month and sends it to HMRC, so tax is spread across the year instead of paid in one lump sum.
Does this cover Scotland?
No. Scotland sets its own income tax bands, so a Scottish taxpayer will get a different income tax figure. National Insurance is UK-wide.
Why is my take-home pay different from this estimate?
Pension contributions, student loan repayments, benefits in kind and tax code adjustments all change the final figure. This calculator uses salary, the 2025/26 bands and National Insurance only.