How UK take-home pay is worked out
Your employer takes income tax, National Insurance and any student loan repayment through PAYE before your pay reaches you. The calculator follows the same steps for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027.
- Pension first. Salary sacrifice lowers your salary itself. A net pay arrangement takes your contribution before income tax but not before National Insurance. Relief at source takes it from your pay after tax, and the pension scheme adds basic rate relief.
- Income tax on your pay above your tax-free allowance, £12,570 with the usual code 1257L, at the bands for England, Wales and Northern Ireland or the Scottish bands.
- National Insurance at 8% on pay between £1,048 and £4,189 a month and 2% above, worked out on each payday's pay.
- Student and postgraduate loans at 9% and 6% of the pay above your plan's threshold, also per payday and rounded down to the pound.
Worked example: £35,000 in England
Take a salary of £35,000, tax code 1257L, paid monthly, with a Plan 2 student loan and no pension.
- Income tax: £35,000 − £12,570 allowance = £22,430 taxable, all in the 20% basic rate band, so £4,486.00 a year.
- National Insurance: monthly pay of £2,916.67 is £1,868.67 above the £1,048 primary threshold. 8% of that is £149.49 a month, £1,793.92 a year.
- Plan 2 loan: the monthly threshold is £2,448.75. 9% of the £467.92 above it is £42.11, rounded down to £42 a month, £504 a year.
- Take-home pay: £28,216.08 a year, £2,351.34 a month.
On the next £100 of salary this person keeps £63: 20% goes to income tax, 8% to National Insurance and 9% to the student loan, a marginal rate of 37%. To compare this with an hourly wage or a raise, use the salary converter and the raise calculator.
2026/27 income tax bands
England, Wales and Northern Ireland share the same bands for 2026/27. Wales sets its own rates, but they match for this year. Scotland has six bands of its own. The ranges below assume the standard £12,570 personal allowance, as on GOV.UK.
| England, Wales, Northern Ireland | Rate | Pay per year |
|---|---|---|
| Personal allowance | 0% | Up to £12,570 |
| Basic rate | 20% | £12,571 to £50,270 |
| Higher rate | 40% | £50,271 to £125,140 |
| Additional rate | 45% | Over £125,140 |
| Scotland | Rate | Pay per year |
|---|---|---|
| Personal allowance | 0% | Up to £12,570 |
| Starter rate | 19% | £12,571 to £16,537 |
| Basic rate | 20% | £16,538 to £29,526 |
| Intermediate rate | 21% | £29,527 to £43,662 |
| Higher rate | 42% | £43,663 to £75,000 |
| Advanced rate | 45% | £75,001 to £125,140 |
| Top rate | 48% | Over £125,140 |
You pay Scottish income tax if you live in Scotland, and an S at the start of your tax code means Scottish rates. The personal allowance, National Insurance and the student loan thresholds are the same everywhere in the UK.
Scotland and the rest of the UK compared
Take-home pay per year with tax code 1257L, paid monthly, without pension or student loan.
| Salary | England, Wales, NI | Scotland | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £17,960 | +£40 |
| £30,000 | £25,120 | £25,155 | +£35 |
| £40,000 | £32,320 | £32,255 | −£65 |
| £50,000 | £39,520 | £38,024 | −£1,496 |
| £75,000 | £54,058 | £52,008 | −£2,050 |
| £100,000 | £68,558 | £65,258 | −£3,300 |
| £150,000 | £91,287 | £85,356 | −£5,931 |
The Scottish starter rate of 19% makes low salaries a little better off in Scotland. Above that the 21% intermediate rate and the 42% higher rate, which starts at £43,663, take more. Between £43,663 and £50,270 a Scottish taxpayer pays 42% income tax and still 8% National Insurance, 50% on each extra pound.
National Insurance 2026/27
Employees pay Class 1 National Insurance on each payday's earnings. These are the category A rates, which apply to most employees.
| Earnings | Week | Month | Year | Rate |
|---|---|---|---|---|
| Up to the primary threshold | £242 | £1,048 | £12,570 | 0% |
| Primary threshold to upper earnings limit | £967 | £4,189 | £50,270 | 8% |
| Above the upper earnings limit | - | - | - | 2% |
Because National Insurance is worked out per payday, the part of a bonus month's pay above £4,189 is charged at 2%, even if your yearly pay stays under £50,270. The calculator puts a bonus into one payday the same way. Most people stop paying National Insurance once they reach State Pension age; pick that under other options.
Student loan thresholds 2026/27
| Loan | Year | Month | Week | Rate |
|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 | £517.30 | 9% |
| Plan 2 | £29,385 | £2,448.75 | £565.09 | 9% |
| Plan 4 | £33,795 | £2,816.25 | £649.90 | 9% |
| Plan 5 | £25,000 | £2,083.33 | £480.76 | 9% |
| Postgraduate loan | £21,000 | £1,750.00 | £403.84 | 6% |
Repayments come from pay that National Insurance is charged on, so a net pay pension does not lower them but salary sacrifice does. Your employer runs one undergraduate plan at a time. If you have two, pick the one with the lowest threshold. A postgraduate loan is taken on top of it.
Earning over £100,000
Your personal allowance goes down by £1 for every £2 of adjusted net income above £100,000, so at £125,140 it is gone. At £110,000 the allowance is £7,570, income tax is £33,432 and take-home pay is £72,358 a year. The marginal rate on the next £100 is 62%: 40% income tax, 20% for the allowance you lose and 2% National Insurance.
Pension contributions lower adjusted net income. Paying £10,000 into a relief at source pension at £110,000 brings it back to £100,000, restores the full allowance and lets you claim £4,000 back on top of the £2,000 the scheme adds. A net pay or salary sacrifice pension does it straight through your pay.
Relief at source, net pay or salary sacrifice
The pension type decides when the contribution leaves your pay. Here is £2,000 a year, 5% of a £40,000 salary, three ways:
| Pension type | Income tax | National Insurance | Take-home | Cost to you |
|---|---|---|---|---|
| No pension | £5,486.00 | £2,193.92 | £32,320.08 | - |
| Relief at source | £5,486.00 | £2,193.92 | £30,720.08 | £1,600.00 |
| Net pay arrangement | £5,086.00 | £2,193.92 | £30,720.08 | £1,600.00 |
| Salary sacrifice | £5,086.00 | £2,033.92 | £30,880.08 | £1,440.00 |
- Relief at source: you pay 80% of the contribution from taxed pay and the scheme claims the other 20% from HMRC. If you pay tax above 20%, you claim the rest, for example through Self Assessment. On £60,000 with £3,000, that is £600, which makes it equal to the net pay result of £43,558. Scottish starter rate taxpayers still get the full 20%.
- Net pay arrangement: the contribution comes off before income tax, so you get relief at your top rate right away, but National Insurance is still charged on the full pay.
- Salary sacrifice: you give up part of your salary and your employer pays it into the pension. Tax and National Insurance apply only to the cash pay that is left, which saves the 8% or 2% as well. It may not take your pay below the National Minimum Wage. GOV.UK has announced that from April 2029 only the first £2,000 a year of pension salary sacrifice will stay free of National Insurance.
With automatic enrolment the minimum is 5% from you, including tax relief, and 3% from your employer, for most schemes on qualifying earnings between £6,240 and £50,270 a year. Pick that under "Pension based on" if your scheme works that way. The calculator counts only your own contribution; your employer's share is extra and does not change your take-home pay.
Tax codes the calculator reads
| Code | What it does here |
|---|---|
| 1257L | £12,570 tax-free, then the normal bands. Above £100,000 the allowance is tapered. |
| Other numbers with L, M, N or T | The number times ten is tax-free, used as it is. M and N codes come from the Marriage Allowance. |
| 0T | No tax-free pay, then the normal bands. |
| K codes, like K475 | Adds the number times ten to your taxable pay. Tax is capped at half of your pay. |
| BR, D0, D1 | All pay at 20%, 40% or 45%. Scottish codes: SBR 20%, SD0 21%, SD1 42%, SD2 45%, SD3 48%. |
| NT | No income tax. |
| S or C in front | Scottish or Welsh rates, whatever you picked as your region. |
| W1, M1 or X at the end | Emergency codes. The calculator works out a full year, as if the code were cumulative. |
How to use the UK take-home pay calculator
- 1Enter your salary and whether it is per year, month, week or hour. For an hourly wage, add your hours per week.
- 2Pick where you live, your pension percentage and type, and your student loan plan. Add a bonus if you expect one.
- 3Open "Tax code and other options" to enter the code from your payslip, switch to weekly pay or set the pension to qualifying earnings.
- 4Read your take-home pay per month, year and week, the breakdown and your marginal rate, then copy the result or a link.
Once you know your monthly take-home pay, the 50/30/20 budget planner splits it into needs, wants and savings.
What the calculator does not cover
- Income outside this job: a second job, self-employment, savings interest, dividends, rental income and taxable benefits such as a company car. If HMRC collects tax on them through your pay, enter the code from your payslip.
- The High Income Child Benefit Charge, the Marriage Allowance as a tax reduction, Gift Aid and tax relief for work expenses.
- National Insurance categories other than A, such as the reduced rate for married women with an election.
- Payroll rounding. Your employer works out each payslip on its own, so your payslip can differ by small amounts.
Tax year and sources
All rates and thresholds are for the 2026/27 tax year, 6 April 2026 to 5 April 2027, and were checked on GOV.UK in October 2026.
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Income Tax if you earn more than £100,000
- GOV.UK: Scottish Income Tax
- GOV.UK: Welsh Income Tax
- GOV.UK: National Insurance rates and category letters
- GOV.UK: Tax and National Insurance after State Pension age
- GOV.UK: Repaying your student loan, what you pay
- GOV.UK: Collection of student loans from 6 April 2026 (payroll specification)
- GOV.UK: Tax on your private pension, pension tax relief
- GOV.UK: Adjusted net income
- GOV.UK: 2026 to 2027 employer further guide to PAYE and National Insurance (CWG2)
- GOV.UK: Salary sacrifice for employers
- GOV.UK: Changes to salary sacrifice for pensions from April 2029
- GOV.UK: Workplace pensions, what you, your employer and the government pay
- GOV.UK: What your tax code means
- GOV.UK: If you have a K in your tax code
Frequently asked questions
How much is the personal allowance in 2026/27?
£12,570, which is what the usual tax code 1257L gives you. It shrinks by £1 for every £2 of adjusted net income above £100,000, so it is gone at £125,140. The amount is the same in England, Wales, Northern Ireland and Scotland.
Why do I pay 62% on income between £100,000 and £125,140?
In that range every extra £2 of income also removes £1 of your personal allowance, and that pound is then taxed at 40%. So £100 more pay costs £40 in income tax plus £20 for the lost allowance, and 2% National Insurance on top. The calculator shows a marginal rate of 62% at £110,000. Paying into a pension lowers your adjusted net income and can restore the allowance.
Do Scottish taxpayers pay National Insurance at different rates?
No. National Insurance is the same across the UK: 8% between £242 and £967 a week and 2% above. Only income tax has Scottish bands. Because the Scottish 42% higher rate starts at £43,663, well below the £50,270 upper earnings limit, a Scottish taxpayer earning £46,000 pays 50% on the next £100 of salary.
How is my student loan repayment worked out?
Your employer takes 9% of your pay above your plan's threshold, or 6% above £21,000 a year for a postgraduate loan, on each payday. The threshold is split into weekly or monthly amounts and each deduction is rounded down to the pound. A bonus month can bring a larger deduction, because only that month's pay counts.
Which pension type gives me the most take-home pay?
For the same contribution, salary sacrifice usually leaves the most, because the pay you give up is free of both income tax and National Insurance. With £2,000 a year on a £40,000 salary, salary sacrifice leaves £30,880.08 against £30,720.08 under a net pay arrangement or relief at source. Relief at source and net pay come out the same for a basic rate taxpayer; a higher rate taxpayer with relief at source claims the extra relief back.
What does my tax code mean?
The number times ten is the pay you get tax-free in that job, so 1257L means £12,570. BR taxes all pay at the basic rate, D0 and D1 at the higher and additional rates, 0T gives no allowance, NT means no tax, and K means extra income is collected through your pay. An S in front means Scottish rates, a C Welsh rates.
Is my salary sent anywhere?
No. The tax rates are part of the page and the calculation runs in your browser. Nothing you type is stored or sent to a server.