PAYE Tax Calculator
Demystify your payslip. Enter your exact salary and Tax Code to uncover exactly how much PAYE Income Tax and National Insurance HMRC mandates your employer to deduct.
PAYE Inputs
Enter the numbers straight from your contract or previous payslip.
Payslip Breakdown (Annual)
How HMRC calculates exactly what hits your bank account.
Total Net Take-Home
£27,319.6
Monthly: £2,276.63
Where Does My Salary Go?
Visual breakdown of deductions vs take-home pay.
Understanding UK Tax Codes
Your Tax Code acts as a direct instruction from HMRC to your employer dictating exactly how much of your pay is protected from taxes. Entering the wrong code can drastically change your take-home pay.
Common Tax Codes Explained
What the letters and numbers actually mean.
1257L (Standard)
The most common code. Multiply the number by 10 to get your tax-free personal allowance (£12,570).
BR, D0, D1
Often called "second job" codes. BR taxes everything at 20%, D0 at 40%, and D1 at 45% with £0 personal allowance.
W1 / M1 / X (Emergency)
Temporary non-cumulative codes. Your tax is calculated per week/month in isolation, entirely ignoring any previous tax you've overpaid earlier in the year.
How the PAYE System Functions
The mechanics behind your payslip deductions.
Pay As You Earn
Unlike Self Assessment where you settle a huge bill in January, PAYE splits your tax liability relatively evenly over 12 months, deducting it instantly on payday.
National Insurance vs Income Tax
While your tax code solely dictates your Income Tax, your National Insurance is calculated using a completely separate system (Class 1 Contributions) directly against your gross weekly/monthly salary threshold.
Self Assessment Options
If you have untaxed income exceeding £1,000, dividend payouts, or earn over £100,000, you will likely still need to file a Self Assessment even if you actively pay PAYE tax.
NHS Agenda for Change
Public sector workers like NHS staff have highly bespoke pension schemes (Net Pay arrangement) and 2026/27 pro-rata increments which affect PAYE tax directly. Use our dedicated NHS Salary Calculator to model this.
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