Illustrative estimates only
PayPrecision provides indicative results for information purposes. It may not include all deductions (e.g. student loans, benefits-in-kind, adjustments).
Always verify using official payslip/tax information.
UK tax bands explained (2025/26)
The UK uses a progressive income tax system. That means you only pay a higher rate on the portion of your income
above each threshold — not on your entire salary.
Use the calculator above to estimate your take-home pay, then switch to True Wage to include commute time,
costs and unpaid overtime.
Income Tax bands (England, Wales & Northern Ireland)
- Personal Allowance: most people can earn up to £12,570 before paying income tax.
- Basic rate: income above the allowance is typically taxed at 20% up to the basic-rate limit.
- Higher rate: the slice above the higher-rate threshold is typically taxed at 40%.
- Additional rate: income above the additional-rate threshold is taxed at 45%.
Scotland is different
Scottish taxpayers use different income tax bands. In PayPrecision, choose Scotland in the Region selector for a better estimate.
Example: why you don’t pay 40% on your whole salary
If your salary crosses into a higher band, only the income above that threshold is taxed at the higher rate.
Your earlier income is still taxed at the lower rates.
What happens over £100,000?
Over £100,000, the Personal Allowance is reduced (tapered). This can create a much higher effective marginal rate across that range.
If you’re near this level, use the calculator above and compare scenarios using the Compare tab.
Tax isn’t the whole story
Take-home pay is affected by Income Tax and National Insurance — and your real disposable pay can fall further once you include:
commuting, lunches/coffee, tools/clothing, and unpaid overtime. That’s what True Wage is designed to show.
Quick links
Compare take-home pay by salary