Calculate Your Take-Home Pay Instantly
Free UK PAYE calculator for 2024/25 tax year. Calculate your net salary, income tax, and National Insurance deductions in seconds.
Simply enter your annual gross salary below, and we'll instantly show you how much income tax and National Insurance you'll pay, plus your exact take-home pay (net salary) for the year and each month. Perfect for understanding your payslip or negotiating a new job offer!
Enter your gross annual salary to see a complete breakdown of your PAYE tax, National Insurance contributions, and net take-home pay for the 2024/25 tax year.
Enter your total annual salary before tax
Current UK tax year rates
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PAYE (Pay As You Earn) is the system used by HMRC to collect income tax and National Insurance contributions from employees in the United Kingdom. Instead of paying tax at the end of the year, your employer automatically deducts the correct amount from each paycheck and sends it directly to HMRC.
When you start a new job, your employer will ask for your P45 (from your previous employer) or have you fill out a starter checklist. This information, along with your tax code from HMRC, tells your employer how much tax to deduct from your pay. The deductions happen automatically before you receive your wages, which is why it's called "Pay As You Earn."
Over 30 million people in the UK are paid through the PAYE system. It's one of the most efficient tax collection methods in the world, ensuring that most employees never need to file a tax return.
The UK uses a progressive tax system, meaning you pay higher rates on higher portions of your income:
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Above £125,140 | 45% |
National Insurance (NI) is separate from income tax and goes toward your State Pension and other benefits. For the 2024/25 tax year, employees pay:
National Insurance rates were reduced in 2024 from 12% to 8% (main rate) as part of government efforts to reduce the tax burden on workers. This means more take-home pay compared to previous years!
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PAYE (Pay As You Earn) is the UK's system for collecting income tax and National Insurance contributions directly from employees' salaries before they receive their pay. Employers deduct these amounts and send them to HMRC on behalf of their employees. This means most employees don't need to file a tax return. The system ensures that tax is collected throughout the year rather than in a lump sum.
To calculate take-home pay, subtract income tax and National Insurance from your gross salary. For 2024/25: Income tax is 0% on the first £12,570, 20% on £12,571-£50,270, 40% on £50,271-£125,140, and 45% above £125,140. National Insurance is 8% on £12,571-£50,270 and 2% above that. Simply enter your gross salary in our calculator above for instant results including monthly breakdowns.
UK income tax rates for 2024/25 are: Personal Allowance (0%) up to £12,570 - you pay no tax on this; Basic rate (20%) on earnings from £12,571 to £50,270; Higher rate (40%) on earnings from £50,271 to £125,140; Additional rate (45%) on earnings above £125,140. These are progressive rates, meaning you only pay the higher rate on the portion of income that falls into each band.
Employees pay 8% National Insurance on earnings between £12,571 and £50,270 annually, and 2% on earnings above £50,270. You don't pay National Insurance on the first £12,570 you earn. These rates were reduced in 2024 - previously the main rate was 12%, so workers now keep more of their earnings. National Insurance contributions count toward your State Pension and certain benefits.
This basic PAYE calculator focuses on income tax and National Insurance contributions. Student loan repayments, pension contributions, and other deductions vary significantly by individual circumstances and are not included in this calculation. Student loan repayments depend on which plan you're on (Plan 1, 2, 4, or Postgraduate Loan) and have different thresholds and rates.
This calculator is specifically designed for PAYE employees. Self-employed individuals pay different rates of National Insurance (Class 2 at £3.45/week and Class 4 at 6% on profits £12,570-£50,270, then 2% above) and should use a self-assessment tax calculator instead. Self-employed people also need to file a Self Assessment tax return each year and pay tax in different ways.
Gross salary is your total pay before any deductions - it's what your employer advertises when offering you a job. Net salary (also called take-home pay) is what you actually receive in your bank account after income tax, National Insurance, and any other deductions (like pension contributions or student loans) have been subtracted. The difference between gross and net can be substantial, especially at higher salaries.
This calculator uses official HMRC rates for 2024/25 and provides accurate estimates for standard PAYE calculations with tax code 1257L (the most common code). However, individual circumstances like different tax codes, benefits in kind, company cars, multiple jobs, or being a Scottish taxpayer may affect your actual deductions. Always check your payslip and contact HMRC if something doesn't look right.
Your tax code tells your employer how much tax-free income you're entitled to in a tax year. The standard code for 2024/25 is 1257L, which gives you the full £12,570 personal allowance. Different codes apply if you have multiple jobs, receive benefits, owe tax from previous years, or have other circumstances. An incorrect tax code means you could pay too much or too little tax.
If you believe you're paying incorrect tax: 1) Check your tax code on your payslip is correct, 2) Review your P45 from previous employment, 3) Use HMRC's online services or call them on 0300 200 3300, 4) Keep all payslips as evidence. If you've overpaid, HMRC will refund you, usually automatically through your wages or by cheque. Underpayments may be collected through adjusted tax codes or payment requests.
See how much you'd actually take home at different salary levels
Use the calculator above to see exact figures for your salary
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