HMRC 2025/26 rates · incl. NI & student loansYour salary details
Your take-home pay
Quick salary reference — 2025/26
Annual take-home pay, England/Wales, no student loan, no pension.
| Gross/year | Tax | NI | Take-home | Monthly | Eff. rate |
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Understanding your UK salary (2025/26)
The UK tax system is relatively straightforward compared to most European countries: income tax plus National Insurance, and potentially student loan repayments. However, it contains some traps — particularly the "60% tax trap" between £100,000 and £125,140 where your personal allowance is withdrawn.
Income tax rates — 2025/26
Everyone gets a personal allowance of £12,570 — income up to this amount is tax-free. After that, the basic rate of 20% applies up to £50,270, the higher rate of 40% applies from £50,271 to £125,140, and the additional rate of 45% applies to everything above £125,140. These thresholds have been frozen since 2021 and will remain frozen until April 2028, meaning more people are being dragged into higher tax bands each year as wages rise.
The 60% tax trap
If you earn between £100,000 and £125,140, your personal allowance is reduced by £1 for every £2 over £100,000. By £125,140, your allowance is completely gone. This creates an effective marginal tax rate of 60% in this band (40% tax + 20% from lost allowance). The most effective way to avoid this is through pension contributions, which reduce your taxable income.
National Insurance — 2025/26
Employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. This rate was reduced from 12% to 10% in January 2024, then to 8% in April 2024. Note that employer NI increased to 15% from April 2025 (from 13.8%), with the threshold dropping from £9,100 to £5,000 — making employment significantly more expensive for businesses.
Student loan repayments
If you have a student loan, repayments are deducted from your salary: Plan 1 (pre-2012): 9% on income above £24,990. Plan 2 (post-2012 England/Wales): 9% above £27,295. Plan 4 (Scotland): 9% above £31,395. Plan 5 (post-2023): 9% above £25,000. Postgraduate loan: 6% above £21,000. You can have both a Plan loan and Postgraduate loan deducted simultaneously.
Scottish income tax
Scotland has its own income tax rates with six bands in 2025/26: Starter 19% (£12,571–£15,397), Basic 20% (£15,398–£27,491), Intermediate 21% (£27,492–£43,662), Higher 42% (£43,663–£75,000), Advanced 45% (£75,001–£125,140), and Top 48% (above £125,140). Scottish taxpayers generally pay more tax on income above about £28,000.