If you’re earning a £60,000 annual salary and want to know exactly what you take home after tax, National Insurance (NI), and pension deductions — this guide is for you.
Using the 1257L tax code (the UK default for 2025/26), let’s break it all down.
UK Salary & Tax Breakdown Calculator
If you live in Scotland, income tax is calculated differently.
Rates and thresholds set by Scottish Government.
A common tax code is “1257L” meaning £12,570 tax-free allowance. Check your payslip, P60, or HMRC letter for your correct code.
• Plan 1: Started before September 2012 in England/Wales
• Plan 2: Started after September 2012 in England/Wales
• Plan 4: Scottish students
• Postgraduate Loan: For master’s/PhD courses
Your payslip or SLC account will confirm your plan.
Gross Salary vs Net Salary
- Gross salary: £60,000
- Tax code: 1257L (which gives you a tax-free allowance of £12,570)
This means you only start paying Income Tax on the amount above £12,570.
Tax Breakdown for 2025/26
| Band | Tax Rate | Range | Tax Owed |
|---|---|---|---|
| Personal Allowance | 0% | Up to £12,570 | £0 |
| Basic Rate | 20% | £12,571 – £50,270 | £7,540 |
| Higher Rate | 40% | £50,271 – £60,000 | £3,892 |
Total Income Tax: £11,432
National Insurance (NI)
- You pay 8% on earnings between £12,570 and £50,270
- You pay 2% on earnings over £50,270
NI Total: £3,632
Your Take-Home Pay
| Description | Amount |
| Gross Salary | £60,000 |
| Income Tax | -£11,432 |
| National Insurance | -£3,632 |
| Net Pay | £44,936 |
That works out to:
- Monthly: ~£3,744
- Weekly: ~£866
- Daily (5-day week): ~£173
Optional Pension Contributions
If you contribute to a workplace pension, your taxable income and NI will be reduced further.
Example (5% contribution):
- Pension contribution: £3,000
- New taxable income: £57,000
- New net pay: ~£44,168
Pension contributions lower your take-home pay slightly, but they boost your long-term savings and reduce taxes.
Try Our Calculator
Want to test this out with your own pension rate, bonus, or student loan plan? Use our Take Home Pay Calculator to get a personalised breakdown instantly.
With a £60,000 salary and tax code 1257L, your take-home pay in the UK is roughly £44,936 per year. Use salary sacrifice or pension contributions to increase your tax efficiency.