Salary After Tax UK 2025/2026

A £40,000 annual salary equals approximately £19.23 per hour before tax if you work 40 hours per week for 52 weeks. After tax and National Insurance, this would be around £15.23 per hour for the 2025/26 tax year.

What is the UK tax rate for 2025/26?

For 2025/26, UK Income Tax rates are:

• 0% on income up to £12,570 (Personal Allowance)

• 20% on income from £12,571 to £50,270 (Basic Rate)

• 40% on income from £50,271 to £125,140 (Higher Rate)

• 45% on income over £125,140 (Additional Rate)

Plus National Insurance at 12% (basic rate) and 2% (higher rate).

How do I calculate my take-home pay in the UK?

To calculate take-home pay: Start with gross salary, subtract Income Tax, National Insurance, pension contributions, and student loan repayments. Use our UK Tax Calculator above for accurate calculations with current 2025/26 rates.

What's a good hourly rate in the UK?

The UK National Minimum Wage (2025) is £11.44 per hour for adults. A good hourly rate depends on your industry and experience:

• Entry level: £12-18 per hour

• Skilled/Professional: £20-35 per hour

• Senior/Specialist: £35+ per hour

How much should I budget for expenses in the UK?

A typical UK budget breakdown:

• Housing: 25-35% of income

• Food: 10-15% of income

• Transport: 10-15% of income

• Utilities: 5-10% of income

• Savings: 10-20% of income

Use our Budget Planner above to track your specific expenses.

Do I need to pay National Insurance if I'm over state pension age?

No, if you're over state pension age (currently 66), you don't pay National Insurance contributions, even if you continue working. However, you still pay Income Tax on earnings above the personal allowance.

How are student loan repayments calculated?

Student loan repayments are calculated as a percentage of income above a threshold:

• Plan 1: 9% of income over £22,015

• Plan 2: 9% of income over £27,295

• Postgraduate: 6% of income over £21,000

Our calculator includes all current thresholds and rates.

What's the difference between gross and net salary?

Gross salary is your total pay before any deductions. Net salary (take-home pay) is what you receive after Income Tax, National Insurance, pension contributions, and other deductions are removed.

How accurate are these calculators?

Our calculators use the official UK tax rates and thresholds for 2025/26. They provide accurate estimates for most situations. However, they don't account for every possible circumstance (like complex pension schemes or additional benefits). For complex situations, consult a qualified accountant.