Net salary in the United Kingdom

Tax system in United Kingdom

The UK uses a progressive income tax system with a personal allowance of £12,570 (2025/26), above which rates of 20%, 40%, and 45% apply. National Insurance contributions (NICs) add an additional layer of deduction for employees, currently at 8% on earnings between £12,570 and £50,270, and 2% above. The personal allowance tapers for income above £100,000, effectively creating a 60% marginal rate band. Scotland has its own income tax rates and bands which differ from the rest of the UK.