£125,000 After Tax

Here's a detailed tax calculation for a £125,000 salary. Adjust the values below to match your circumstances.

Here's the breakdown

For Estimation Only

This calculator provides a detailed estimate based on the standard tax rules for United Kingdom (2025/2026). It may not account for all personal circumstances, such as specific tax code variations, some salary sacrifice nuances, or other benefits-in-kind. Always refer to your official payslip or consult a financial advisor for definitive figures.

United Kingdom Income Tax at a Glance

Here are the income tax rates and bands for England, Wales, and Northern Ireland for the 2025/2026 tax year.

Personal Allowance

Up to £12,570

Basic Rate

£12,571 to £50,270

20%

Higher Rate

£50,271 to £125,140

40%

Additional Rate

Over £125,140

45%

Note: Your Personal Allowance may be reduced if your income is over £100,000. Tax bands in Scotland are different.

For official information, please refer to the official government website.

Understanding The Calculator

The values in this calculator can be adjusted to get the most accurate picture of your earnings.

Gross Annual Salary

This is your total yearly salary before any deductions are made. Don't include your bonus here – there's a separate field for that! Just enter the main salary figure your employer pays you.

Tax Code

Your tax code is used by your employer to calculate how much Income Tax to take from your pay. The standard code for most people is 1257L. The numbers tell you how much tax-free income you get (£12,570), and the letter gives more information. Here are the most common letters:

L: You're entitled to the standard tax-free Personal Allowance.
BR, D0, D1: All your income is taxed at a specific rate (Basic, Higher, or Additional). This is common for a second job.
K: You have income that isn't being taxed another way which is worth more than your tax-free allowance (e.g., from a company benefit).
M or N: You're using the Marriage Allowance (one partner transfers 10% of their allowance to the other).
T: Your tax code needs to be reviewed by HMRC.
0T: Your Personal Allowance has been used up, or you've started a new job without a P45.
W1/M1: An emergency tax code where tax is calculated on your pay in the current period only.

If you're unsure, leaving it as 1257L is the best estimate for most people.

Bonus / Commission

If you receive any one-off payments on top of your regular salary, like an annual bonus or sales commission, enter the total amount here. We'll add it to your salary to work out the correct tax and National Insurance.

Student Loan Plan

If you're paying back a student loan, select the right plan to get an accurate calculation. You can find your plan type on your loan statement from the Student Loans Company or by logging into your online account. Here's a quick guide:

Plan 1: Usually if you're from England or Wales and started your course before 1 September 2012.
Plan 2: Usually if you're from England or Wales and started your course between 1 September 2012 and 31 July 2023.
Plan 4: For students from Scotland.
Plan 5: Usually if you're from England and started your course on or after 1 August 2023.
Postgraduate Loan: If you took out a separate loan for a Master's or Doctoral degree.

Pension Contributions

This is how much you're putting into your workplace pension. You can enter it as a percentage (%) of your salary or a fixed amount (£).

Standard vs. Sacrifice:

Standard: Your contribution is taken from your pay after it's been calculated for National Insurance, but before Income Tax. This saves you money on tax.
Sacrifice: You agree to get a lower salary, and in return, your employer pays that "sacrificed" amount into your pension. This is great because it lowers your official salary, so you save on both Income Tax AND National Insurance. It's a win-win if your company offers it!