PAYE Tax Calculator
Enter your gross pay and tax code to estimate income tax, National Insurance, and take-home pay. Useful for understanding payslips and budgeting.
Tax = (gross × tax_rate) - allowances. NI = calculated via earnings thresholds. Net = gross - tax - NI.
⚠️ Double-check important results. This is an educational estimate, not professional advice — and where it uses a rate, bracket or fee, those change over time. Verify anything you'll rely on, especially in legal, financial, tax or medical matters, and read our full disclaimer. Think a result is wrong? Tell us so we can fix it.
How PAYE Tax Is Calculated
PAYE (Pay As You Earn) is the system used in the UK to deduct income tax from your wages or pension. The calculator uses simplified 2024/25 tax year rates:
**Income Tax (2024/25):** - Personal Allowance: £12,570 per year (tax code 1257L gives you this full allowance) - Basic Rate: 20% on income between £12,571-£50,270 - Higher Rate: 40% on income between £50,271-£125,140 - Additional Rate: 45% on income over £125,140
**National Insurance (2024/25):** - Class 1 NI applies to employee earnings - Primary Threshold: £242 per week (£1,048 per month) - Employee Rate: 8% on earnings between £242-£967 per week - 2% on earnings above £967 per week
**Example Calculation:** Gross pay: £3,000 per month (£36,000 per year) Tax code: 1257L (full personal allowance)
Taxable income = £36,000 - £12,570 = £23,430 Income tax = (£23,430 × 20%) = £4,686 per year NI = approximately £2,800 per year (estimated based on thresholds)
Net pay ≈ £36,000 - £4,686 - £2,800 = £28,514 per year, or £2,376 per month
Important Limitations
1. This calculator uses simplified rates and assumptions. Actual deductions depend on your specific circumstances. 2. Student loan repayments, pension contributions, and other deductions are not included. 3. Tax codes change annually - always verify your current code with HMRC. 4. The calculator assumes you have one job and no other significant income sources. 5. For official tax calculations, always use HMRC's tools or consult a tax professional.
Understanding Your Payslip
Key terms on a typical UK payslip: - Gross Pay: Your pay before any deductions - Deductions: Tax, NI, pension, student loan, etc. - Net Pay: Your take-home pay after all deductions - Tax Code: Determines your personal allowance - Pay Period: Weekly, fortnightly, or monthly - Year-to-Date (YTD): Total earnings and deductions from the start of the tax year (6 April to 5 April)
📊 Source & data. Formula and default values reference GOV.UK Income Tax Rates and Allowances. Last verified 2026-10-29. Rates, brackets and fees change over time — all editable fields accept your own current values.
Related Calculators
Tip Calculator
Calculate tip amount and split among multiple people.
Open calculator →Age Calculator
Calculate exact age in years, months, and days between two dates.
Open calculator →30-Minute Lunch Break Calculator
Determine optimal lunch break duration for maximum afternoon productivity.
Open calculator →Gas Mileage Calculator
Calculate MPG (miles per gallon) and fuel cost per mile from distance, fuel used and gas price.
Open calculator →Frequently Asked Questions
What if I have the wrong tax code?
Contact HMRC to update your tax code. The wrong code can mean you pay too much or too little tax, which will be adjusted later.
Does this calculator work for Scotland, Wales, or Northern Ireland?
Yes. PAYE is the same across the UK. However, Scotland has slightly different income tax rates (Scottish Rate bands), which this simplified calculator does not account for.
Can I use this if I have multiple jobs?
The calculator assumes one job. If you have multiple jobs, your tax codes may be split (e.g., 1257L for your main job and BR for others). Consult HMRC or use their online service for multiple-job scenarios.
Looking for a different calculator?
CalculatorPlus has free tools across finance, construction, math, health and more — each one showing the formula and a worked example.