UK Take Home Pay Calculator 2026/27
Calculate your net salary after Income Tax, National Insurance, and Student Loan repayments.
Monthly Take Home
Take Home Pay Breakdown
Detailed analysis of your Income Tax, National Insurance, and Student Loan repayments based on 2026/27 HMRC rates.
| Component | Annual Amount | Details |
|---|---|---|
| 1 Salary | £35,000 | 100% |
| 2 Pension | -£1,750 | 5% |
| 3 calculators.uk_salary_tax.rows.personal_allowance | £12,570 | Details |
| 4 Taxable Income | £20,680 | - |
| 5 Income Tax | -£4,136 | 11.8% |
| 6 National Insurance | -£1,794 | 5.1% |
| 7 Net Pay (Take Home) | £27,320 | 78.1% |
| 8 Monthly Net Pay | £2,277 | - |
Understanding Your UK Payslip
In the UK, your take-home pay is what reaches your bank account after HMRC deducts tax and National Insurance via PAYE (Pay As You Earn). Most employees never need to file a self-assessment return—PAYE handles everything automatically through your employer.
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📝 2026/27 Income Tax Rates (England, Wales & Northern Ireland)
| Band | Income | Rate | |---|---|---| | Personal Allowance | Up to £12,570 | 0% | | Basic Rate | £12,571 – £50,270 | 20% | | Higher Rate | £50,271 – £125,140 | 40% | | Additional Rate | Over £125,140 | 45% |
Important:** The Personal Allowance is reduced by £1 for every £2 of income over £100,000. At £125,140, it is completely withdrawn—creating an effective **60% marginal rate between £100,000–£125,140 (a notorious "trap" for higher earners).
Scotland: Different income tax rates and bands apply in Scotland. Scottish Basic Rate is 20% on income from £14,877 to £26,561, with an Intermediate Rate of 21%, Higher Rate of 42%, and Top Rate of 48% above £125,140.
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🛡️ National Insurance (NI) Contributions 2026/27
National Insurance funds the NHS, State Pension, and other benefits. For most employees (Class 1):
| Earnings | Employee NI Rate | |---|---| | Up to £12,570/year | 0% | | £12,570 – £50,270/year | 8% | | Over £50,270/year | 2% |
Your employer also pays employer NI at 13.8% on earnings above £9,100—this is a cost to the business, not deducted from your payslip, but factors into your total employment cost.
Auto-Enrolment Pension (Workplace Pension): By law, employers must automatically enrol eligible workers into a workplace pension. The minimum total contribution is 8% of qualifying earnings—5% from you (often taken pre-tax via salary sacrifice) and 3% from your employer.
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📚 Student Loan Repayments 2026/27
Student loans are repaid automatically through PAYE once your income exceeds your plan's threshold:
| Plan | Threshold | Repayment Rate | |---|---|---| | Plan 1 (before Sept 2012, England/Wales) | £24,990/year | 9% above threshold | | Plan 2 (Sept 2012–July 2023, England/Wales) | £27,295/year | 9% above threshold | | Plan 4 (Scotland) | £31,395/year | 9% above threshold | | Plan 5 (Aug 2023+, England) | £25,000/year | 9% above threshold | | Postgraduate Loan | £21,000/year | 6% above threshold |
Example – Plan 2 threshold, £35,000 salary:
- Income above threshold: £35,000 − £27,295 = £7,705
- Annual repayment: 9% × £7,705 = £693/year (£57.75/month)
💡 Key Tax-Saving Strategies
Salary Sacrifice Pension Contributions made via salary sacrifice reduce your *gross salary* before tax and NI are calculated. This means you save income tax AND employee NI on every pound contributed. For a 40% taxpayer contributing £5,000/year:
- Income tax saved: £2,000 (40%)
- NI saved: £100 (2% above upper earnings limit) or £400 (8% below it)
- Total saving: £2,100–£2,400
Marriage Allowance If one partner earns below the Personal Allowance (£12,570) and the other is a Basic Rate taxpayer, the lower earner can transfer £1,260 of their allowance. Tax saving: £252/year. Apply via HMRC online.
HMRC PAYE Code Your tax code (shown on payslips, typically something like 1257L) determines your tax-free amount. Check it carefully—errors are common, especially after a job change, benefit-in-kind addition, or starting self-employment alongside employment.
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📊 Take-Home Pay Examples (England, 2026/27)
| Gross Annual Salary | Monthly Gross | Monthly Take-Home (approx.) | Effective Rate | |---|---|---|---| | £20,000 | £1,667 | £1,473 | 11.6% | | £30,000 | £2,500 | £2,065 | 17.4% | | £40,000 | £3,333 | £2,643 | 20.7% | | £50,000 | £4,167 | £3,177 | 23.7% | | £60,000 | £5,000 | £3,641 | 27.2% | | £80,000 | £6,667 | £4,567 | 31.5% | | £100,000 | £8,333 | £5,507 | 33.9% |
*Estimates assume standard Personal Allowance, no Student Loan, no pension deduction.*
Frequently Asked Questions
Q: What is the income tax rate in the UK for 2026/27?
A: For England, Wales and Northern Ireland: 0% on the first £12,570 (Personal Allowance), 20% on £12,571–£50,270 (Basic Rate), 40% on £50,271–£125,140 (Higher Rate), and 45% above £125,140 (Additional Rate). The Personal Allowance is gradually withdrawn between £100,000–£125,140, creating an effective 60% marginal rate in that band. Scotland has different rates ranging from 19% to 48%.
Q: How is National Insurance calculated in 2026/27?
A: Employees pay 8% National Insurance on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. NI is calculated on gross earnings before pension contributions (unless salary sacrifice is used). There is no NI-free "Personal Allowance" deduction for NI—the 0% band only applies to the first £12,570. Employers separately pay 13.8% employer NI, which does not appear on your payslip.
Q: When do I start repaying my student loan in the UK?
A: Repayments start automatically through PAYE when your income exceeds your plan's threshold: Plan 2 (most English graduates post-2012): £27,295/year; Plan 5 (English graduates from August 2023): £25,000/year; Scotland Plan 4: £31,395/year. You repay 9% of income above the threshold. Student loan interest is separate from repayments and does not appear on your payslip. Postgraduate loans use a 6% rate above a £21,000 threshold.
Q: How does salary sacrifice pension reduce my tax?
A: With salary sacrifice, your employer reduces your gross salary by the pension contribution amount before calculating tax and National Insurance. This means you save income tax AND employee NI. A Basic Rate taxpayer (20%) contributing £100/month via salary sacrifice saves £20 income tax + £8 NI = £28/month in tax—making the net cost just £72 for a £100 pension contribution. For Higher Rate taxpayers, savings are even greater.
Q: What is a PAYE tax code and how do I check mine?
A: Your PAYE tax code tells your employer how much tax-free income you're entitled to each year. The most common code is 1257L, meaning a £12,570 Personal Allowance. Adjustments are made for benefits in kind (e.g., a company car), unpaid tax from previous years, or other income sources. Check your code on your payslip, P60, or via HMRC Personal Tax Account (gov.uk). Incorrect tax codes are common—especially after job changes—and can result in underpayment or overpayment of tax.
Official Sources & Authority References
Important Disclaimer
This calculator provides estimates for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws change annually — verify figures with HMRC or IRS guidance, or consult a qualified tax professional before making financial decisions.
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