Glossary · UK

What is Take-Home Pay?

The amount of salary you actually receive after Income Tax, National Insurance and other deductions.

Full Definition

Take-home pay (also called net pay) is what is left from your gross salary after all deductions. For an employee in 2026/27 the main deductions are Income Tax (0% up to the £12,570 Personal Allowance, 20% to £50,270, then 40% to £125,140 and 45% above), employee National Insurance at 8% then 2%, plus workplace pension contributions and any student loan. For example, a £35,000 salary leaves roughly £28,000 a year, or about £2,330 a month, before pension. Salary sacrifice arrangements — for pensions or electric cars — reduce gross pay before tax and NI are calculated, which lowers tax but also your take-home figure on paper while boosting savings. Scottish taxpayers have different rates and bands, which changes their take-home pay compared with the rest of the UK.