UK Take-Home Pay Calculator
2026-27 tax year · England, Wales & Northern Ireland
Reduces taxable pay — saves income tax and NI
How your take-home pay is calculated
Your take-home pay is your gross salary minus income tax, National Insurance contributions (NICs), any pension contributions, and student loan repayments where applicable. For the 2026-27 tax year (6 April 2026 to 5 April 2027), all major thresholds for England, Wales and Northern Ireland are unchanged from last year.
Personal Allowance and income tax bands
The first £12,570 of your income is tax-free — this is your Personal Allowance. Income above £12,570 up to £50,270 is taxed at 20% (basic rate). Income from £50,271 to £125,140 is taxed at 40% (higher rate). Income above £125,140 is taxed at 45% (additional rate).
If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 earned above £100,000, and disappears entirely at £125,140. This creates an effective 60% marginal rate on income between £100,000 and £125,140 — making pension contributions especially valuable in this band.
National Insurance contributions
Employees pay National Insurance at 8% on earnings between £12,570 and £50,270 per year. Above £50,270, the rate drops to 2%. There is no NI on earnings below £12,570. If you contribute to your pension via salary sacrifice, your taxable pay is reduced before NI is calculated, saving NI on what you put in.
Pension contributions
This calculator assumes pension contributions are made via salary sacrifice, the most common arrangement. Your gross salary is reduced by your pension percentage before tax and NI are applied, so you save both income tax and National Insurance on contributions. A basic rate taxpayer putting in 5% of a £40,000 salary saves around £360 in NI alone, on top of 20% income tax relief.
Student loan repayments
Student loan repayments are deducted automatically through PAYE alongside tax and NI. The amount depends on your plan and earnings above your plan threshold. For 2026-27 the thresholds are Plan 1 (£26,900), Plan 2 (£29,385), Plan 4 (£33,795), Plan 5 (£25,000), and Postgraduate (£21,000). Plans 1-5 charge 9% above threshold; Postgraduate charges 6%.
Frequently asked questions
What tax code does this calculator use?
This calculator uses the standard tax code 1257L, giving you the full Personal Allowance of £12,570. If you have a different tax code — due to multiple jobs, unpaid tax, or a company benefit — your actual take-home will differ. You can find your tax code on your payslip or in your HMRC Personal Tax Account.
Why is my actual take-home different from the result?
This calculator covers the four most common deductions: income tax, National Insurance, pension, and student loan. Your payslip may also include cycle to work payments, SAYE contributions, private health insurance, or childcare scheme deductions. Overtime, bonuses, and commission can also cause monthly variation.
Does this work for Scotland?
No — Scotland uses different income tax bands with six rates from 19% to 48%. A Scotland-specific calculator is coming soon. Scottish taxpayers can use this to estimate NI and student loan deductions only — the income tax figure will not be accurate for Scottish rates.
What is the effective 60% tax rate between £100,000 and £125,140?
As your income rises above £100,000, you lose £1 of Personal Allowance for every £2 earned. This means you pay tax on the lost allowance as well as the extra income, creating a marginal rate of 60% (40% income tax + 20% tax on lost allowance). Making pension contributions via salary sacrifice is the most effective way to reduce income back below £100,000.
What is the Marriage Allowance?
If one partner earns less than £12,570 and the other is a basic rate taxpayer, up to £1,260 of unused Personal Allowance can be transferred, saving up to £252 per year. This calculator does not account for Marriage Allowance. You can claim it directly through HMRC.