Salary and Tax Deductions Calculator

In the UK, your salary is subject to income tax and national insurance contributions. Our Calculator is a quick and easy tool to help you calculate your payroll, including income tax payments and NI contributions.

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  • YearlyMonthlyWeekly
  • National Insurance
  • Income Tax
  • Takehome pay

On a £50,000 salary, your take home pay will be £37,198 after tax and National Insurance. This equates to £3,100 per month and £715 per week. If you work 5 days per week, this is £143 per day, or £18 per hour at 40 hours per week.

This figure is for guidance only, and does not in any way constitute financial advice. We advise you to consult a specialist regarding any major financial decisions.

Income Tax

From April 2016, tax payers of all ages have the same default tax-free personal allowance of £12,570.

From April 2010, those earning over £100,000 have their personal allowance reduced - by £1 for every £2 they earn over £100,000 until their allowance reaches zero, regardless of age. In the case of this reduction of personal allowance, the reduction is calculated using your adjusted net income, which is your gross income reduced by deductions such as pension contributions or charitable donations.

Your personal allowance may be different from the default, as described in the "Tax Codes" section below.

Blind people get an extra £2,600 on their tax allowance. Married people over the age of 87 receive a tax rebate, after other deductions have been made, of £941.50 - although this rebate can be reduced if your income is sufficient, to a minimum of £364.

From April 2016 the Scottish Parliament have been able to set different tax bands from the rest of the UK. If you are resident in Scotland, you will pay 19% on the first £2,163 of income over the personal allowance. From £2,163 to £13,118 the tax rate is 20%. From £13,118 to £31,092 the tax rate is 21%. From £31,092 to £150,000 the tax rate is 41%. Anything earned over £150,000 is taxed at the maximum 46%.

Any taxable income (i.e. that income above the personal allowance) up to £37,700 is taxed at 20%, from £37,701 to £150,000 is taxed at 40% and taxable income over £150,000 is taxed at the rate of 45%.

UK Income Tax
Personal Allowance£12,570
Income Limit£100,000
Blindness Allowance£2,600
Income Limit£941,50
Tax above personal allowance
£0 – £37,70020%
£37,701 – £150,00040%
over £150,00045%
Scottish tax rates
£0 – £2,16319%
£2,164 – £13,11820%
£13,119 – £31,09221%
£31,093 – £150,00041%
over £150,00046%

Tax Codes

The table above right shows the default personal allowance as described in the previous section. However, in some circumstances HMRC may adjust your personal allowance, often because of benefits like a company car or private healthcare. They do this by providing your employer with a tax code which indicates what your personal allowance should be. You can enter this tax code into The Salary Calculator to get a more accurate calculation of your take-home pay.

The usual effect of such an adjustment would be to lower your personal allowance, meaning that you pay tax on more of your income. If you receive benefits such as private healthcare or a company car through your employer, you pay more tax on your salary so that the value of these benefits is also taxed.

Tax codes usually indicate the personal allowance by including a number which is the personal allowance divided by ten. The standard code 1257L indicates a personal allowance of £12,570.

  • L, P, Y, M, N and T codes indicate the personal allowance to be assigned as described above
  • K codes indicate the amount by which the taxable income should be increased, if you owe more tax
  • A BR code indicates you pay 20% basic rate tax on all income
  • A D0 code indicates you pay 40% tax on all income
  • A D1 code indicates you pay 45% tax on all income
  • An NT code indicates you pay no tax

From April 2016, tax codes can start with the letter S, which indicates that you pay the Scottish Rate of income tax. These rates are described in the "Income Tax" section above.

National Insurance

National Insurance code A is applied to most employees who are not paying into a pension, or if your pension is not "contracted-out".If your gross income(ie before tax) is less than £242 per week, you will make no National Insurance contributions.Gross earnings between £242 and £967 per week are charged at 13.25 %. Any earnings over £967 per week are charged at 3.25 %.

If you are receiving the State Pension, you do not have to pay National Insurance.

From April 2016 it is no longer possible to "contract out" of the second state pension - meaning that the reduced NI code D is no longer applied.If you previously paid band D NI you will pay band A NI from April 2016.

NI code A
Below – £242/week0%
£242 – £967/week12%
Abowe £967/week2%

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