Salary Guide
How Much Tax Do I Pay on My Salary UK?
Your salary is usually shown as a gross yearly figure, but your actual take-home pay is lower after income tax, National Insurance, and other possible deductions.
What tax comes out of salary?
The main deductions for most employees are income tax and National Insurance. Some people may also have pension contributions, student loan repayments, or other deductions.
This is why a salary offer does not translate directly into the same amount in your bank account.
What affects how much tax you pay?
- Gross salary: higher income can move more earnings into higher tax bands.
- Tax code: this affects how your personal allowance is applied.
- Pension contributions: these can change taxable pay and take-home pay.
- Student loans: repayments may apply above certain income levels.
Why take-home pay matters
For budgeting, rent, mortgage affordability, savings, and bills, your net monthly pay is usually more useful than your headline salary.
It also helps when comparing job offers or understanding a pay rise.
Estimate your salary tax
Use the Salary After Tax Calculator to estimate what you actually keep each month.
Use Salary Calculator →FAQs
Is salary tax based on gross or net pay?
Tax calculations usually start from gross pay, then deductions are applied to estimate net pay.
Why is my monthly pay lower than expected?
Income tax, National Insurance, pensions, student loans, and other deductions can reduce take-home pay.
Does a pay rise mean I keep all the extra money?
No. Tax and other deductions usually mean the net increase is smaller than the gross increase.
Can I estimate salary tax online?
Yes. A salary calculator can give a quick estimate of take-home pay.