Redundancy pay tax calculator

Reviewed: September 2026

Find out how much of your redundancy package may be tax-free and how much could be taxed as earnings. Our calculator separates qualifying termination payments from PILON, holiday pay and wages.

How redundancy pay is taxed

The first £30,000 of qualifying termination payments may be exempt from income tax and employee NI. This includes statutory redundancy, enhanced redundancy, and genuine compensation for losing your job. PILON, holiday pay, unpaid wages and bonuses are always taxed as earnings.

Source:GOV.UK — Termination payments and tax

What our calculator shows

• Potentially tax-free qualifying payments
• Taxable earnings breakdown
• Estimated income tax and National Insurance
• Your estimated take-home amount