Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — figures refreshed at the start of each tax year.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic US planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Gross Salary ($)
$55,000
Pay Frequency
Bi-weekly (26 paychecks/yr)
Filing Status
Single
401(k) Pre-Tax Contribution (%)
$250 per month
After entering these figures, review take-home per paycheck, annual take-home and federal tax/paycheck together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Take-Home per Paycheck
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Annual Take-Home
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Federal Tax/paycheck
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
FICA/paycheck
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Effective Rate
The effective rate lets you compare options on a true like-for-like basis rather than being misled by different compounding periods or fee structures. Use it to cut through headline marketing rates when shortlisting providers or products.
Method & assumptionsAuthoritative sources
This calculator estimates your US take-home pay using 2024 federal income tax brackets, the standard deduction ($14,600 single, $29,200 married filing jointly, $21,900 head of household), and FICA withholding rates of 6.2% for Social Security on wages up to $168,600 and 1.45% for Medicare on all wages. An additional 0.9% Medicare surtax applies to wages above $200,000 for single filers and $250,000 for married filing jointly. Traditional 401(k) contributions and employer-sponsored health insurance premiums are treated as pre-tax deductions that reduce your federal and state taxable income, as is standard for most US employer-sponsored plans.
State income tax is applied as a flat rate against your federal taxable income — this is a simplification since most states use progressive brackets, but it produces a useful estimate when you enter your effective state rate. The result does not include local city or county taxes, which can add 1% to 4% in cities like New York City, Philadelphia, or Columbus, Ohio. Your actual paycheck may differ depending on W-4 withholding elections, additional voluntary deductions, or employer-specific payroll processing. Always cross-reference with your pay stub for an accurate figure.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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End-of-article next steps
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