Working in Nottingham: Salary & Taxes
Income Tax in the East Midlands
Employees in Nottingham pay Income Tax based on the standard rates for England. For the 2025/2026 tax year, this means you likely have a tax-free Personal Allowance of £12,570 (Code 1257L).
Living Costs and Net Pay
Nottingham offers a competitive cost of living compared to other major UK cities. Understanding your net salary—what you actually take home after tax and NI—helps you budget effectively for housing, transport, and leisure in the city.
Salary Deductions
Your gross salary is reduced by:
- Income Tax: 20%, 40%, or 45% bands.
- National Insurance: Mandatory contributions for state benefits.
- Student Loans: Repayments for Plan 1, 2, 4 or Postgraduate loans.