Is PAYE calculated on gross or net salary?

Calculate income tax (PAYE) and National Insurance (NI) contributions plus the effects of salary increases

Your final salary is calculated by deducting income tax and national insurance from your gross salary. Income tax and NI rates are set in bands and subject to change each year by HMRC, with everyone entitled to a tax free allowance on their earnings.

Your employer uses your tax code during PAYE to determine how much to take off from your gross salary according to your personal allowance.

This PAYE/NI calculator will determine which bands your gross salary falls in and tell you how much tax you pay.