Your gross salary is the number in your job offer. Your take-home pay — or "net salary" — is what actually lands in your bank account. The gap between the two surprises most people, and understanding exactly where it goes helps you budget accurately and find legal ways to keep more.
UK employees pay two main deductions: Income Tax and National Insurance contributions (NICs). Your employer also deducts these via PAYE (Pay As You Earn) before paying you.
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Note: The personal allowance is reduced by £1 for every £2 you earn over £100,000, reaching zero at £125,140.
| Earnings | NIC Rate |
|---|---|
| Up to £12,570/year | 0% |
| £12,571 – £50,270/year | 8% |
| Over £50,270/year | 2% |
US tax is more complex because you pay Federal income tax, FICA (Social Security + Medicare), and potentially state income tax — all of which vary by filing status and location.
| Income Range | Rate |
|---|---|
| $0 – $11,600 | 10% |
| $11,601 – $47,150 | 12% |
| $47,151 – $100,525 | 22% |
| $100,526 – $191,950 | 24% |
| $191,951 – $243,725 | 32% |
| $243,726 – $609,350 | 35% |
| Over $609,350 | 37% |
| Tax | Rate | Wage Cap |
|---|---|---|
| Social Security | 6.2% | $168,600 (2026) |
| Medicare | 1.45% | No cap |
| Additional Medicare | 0.9% | On earnings over $200,000 |
People often confuse these two. Your marginal rate is the tax rate on your last pound/dollar of income. Your effective rate is the total tax you pay divided by your total income.
A UK earner on £80,000 is a 40% higher-rate taxpayer (marginal rate), but their effective income tax rate is closer to 23% — because only the portion above £50,270 is taxed at 40%.
Enter your salary, pension contribution, and student loan plan to get an instant breakdown of your take-home pay, income tax, and National Insurance.
Calculate My Take-Home →On £30,000 in 2026/27, you'd pay approximately £3,486 in income tax and £1,394 in National Insurance, giving a take-home of around £25,120/year or £2,093/month.
On £50,000 you'd pay approximately £7,486 in income tax and £3,002 in National Insurance, giving a take-home of around £39,512/year or £3,293/month.
At £100,000, you begin losing your personal allowance. Expect to pay approximately £27,432 in income tax and £5,338 in National Insurance, giving a take-home of approximately £67,230/year — an effective rate of about 33%.
Yes — unlike employee pension contributions, salary sacrifice reduces your gross pay before NIC is calculated. This means you save both income tax and National Insurance on the sacrificed amount, making it more tax-efficient than standard pension contributions.