UK Take-Home Pay Calculator (2026/27)
Understanding exactly how much of your gross salary arrives in your bank account is essential for personal budgeting and negotiating job offers. In the United Kingdom, your take-home pay is determined by HM Revenue & Customs (HMRC) progressive Income Tax bands, Class 1 employee National Insurance contributions (NICs) at the 8% statutory main rate, auto-enrolment workplace pensions, and student loan repayments. This calculator provides an exact, itemized projection of your annual, monthly, weekly, and daily net take-home pay across England, Wales, Northern Ireland, and Scotland.
UK Take-Home Pay Calculator (2025 / 2026 Tax Year)
Calculate your exact take-home pay after HMRC Income Tax, employee Class 1 National Insurance (8%), workplace pension contributions, and student loan deductions across England, Wales, Northern Ireland, and Scotland.
How this calculator works
How it works
- 01Gross Earnings Input: Enter your salary annually, monthly, as a contractor daily rate, or as an hourly wage with scheduled weekly hours.
- 02Workplace Pension Deduction: Applies your employee pension contribution percentage. If set to 'Salary Sacrifice', pension savings reduce both your taxable income and National Insurance liability.
- 03Personal Allowance Tapering: Standard tax code 1257L grants £12,570 tax-free. If your adjusted net income exceeds £100,000, your allowance tapers down by £1 for every £2 of income until it reaches £0 at £125,140.
- 04HMRC Income Tax: Calculates progressive income tax under standard UK rates (20% basic, 40% higher, 45% additional) or Scottish 6-band rates (19% starter to 48% top rate).
- 05Class 1 National Insurance: Withholds 8% on earnings between £12,570 and £50,270 per year (£242 to £967 per week) and 2% on earnings above £50,270.
- 06Student Loan Repayments: Computes exact deductions for Plan 1, Plan 2, Plan 4 (Scotland), Plan 5, and Postgraduate Loans on earnings exceeding statutory annual plan thresholds.
Tax rules that apply
- •The 60% Marginal Tax Trap: Earnings between £100,000 and £125,140 face an effective marginal tax rate of 60% (62% including 2% National Insurance). For every £2 earned in this band, £1 of personal allowance is lost, creating an extra 20% tax charge on top of the 40% higher rate.
- •Salary Sacrifice Efficiency: A salary sacrifice pension agreement lowers your contractual gross wage before tax and NI are calculated, saving you up to 40% or 45% in income tax and 2% to 8% in National Insurance.
- •Scottish Devolution Differences: Scottish taxpayers pay Scottish Income Tax (SIT), which features different bands: 19% (Starter), 20% (Basic), 21% (Intermediate), 42% (Higher), 45% (Advanced), and 48% (Top). However, National Insurance thresholds remain UK-wide.
- •State Pension Age NIC Exemption: Workers who continue in employment beyond the UK State Pension age are legally exempt from employee Class 1 National Insurance contributions (using category C).
Current Tax Rates
| Tax / Deduction | Rate | Notes |
|---|---|---|
| Tax-Free Personal Allowance | £12,570 | Code 1257L; tapers by £1 per £2 over £100k |
| Basic Rate Income Tax (20%) | 20.0% | Taxable pay £12,571 to £50,270 (England/Wales/NI) |
| Higher Rate Income Tax (40%) | 40.0% | Taxable pay £50,271 to £125,140 |
| Additional Rate Income Tax (45%) | 45.0% | Taxable pay over £125,140 |
| Class 1 National Insurance (Main) | 8.0% | Earnings £12,570 to £50,270 (£242–£967/wk) |
| Class 1 National Insurance (Upper) | 2.0% | Earnings above £50,270/yr (£967/wk) |
What this calculator assumes
- Calculated in accordance with HMRC 2026/27 tax schedules and statutory National Insurance rates.
- Assumes standard tax code 1257L unless customized by the user.
- Workdays per year modeled at 260 days (52 weeks × 5 days) for daily contractor conversions.
- Does not model marriage allowance transfer or blind person's relief unless reflected in a custom tax code.
Where our numbers come from
These calculators are based on official government tax rates and rules. We link directly to the source so you can verify everything yourself.
HMRC — Employer Tax Rates & Thresholds 2025–2026
HM Revenue & Customs, United Kingdom
HMRC — Income Tax & National Insurance Rates 2026/27
HM Revenue & Customs (HMRC)
Scottish Government — Scottish Income Tax Rates and Bands 2026/27
The Scottish Government (Riaghaltas na h-Alba)
Frequently Asked Questions
How is take-home pay calculated in the UK?
Your UK take-home pay is calculated by taking your gross salary and deducting: (1) Workplace pension contributions; (2) PAYE Income Tax (calculated on earnings above your £12,570 Personal Allowance at 20%, 40%, or 45%); (3) Class 1 National Insurance contributions (8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270); and (4) Student loan repayments if your income exceeds your plan threshold. The remaining figure is paid directly into your bank account.
What is the 60% tax trap for earners over £100,000?
In the UK, when your adjusted net income exceeds £100,000, you lose £1 of your £12,570 Personal Allowance for every £2 of income above £100,000 until it reaches zero at £125,140. This means for every £100 earned in this band, you pay £40 in Higher Rate income tax plus £20 from the loss of £50 of tax-free allowance taxed at 40%, plus 2% in National Insurance. This results in an effective marginal tax rate of 62%. Many professionals use salary sacrifice pension contributions to keep their adjusted net income at or below £100,000.
How does salary sacrifice increase my take-home efficiency?
Under a salary sacrifice pension arrangement, you agree to reduce your contractual salary by the amount of your pension contribution. Because your official gross salary is lower, you pay less Income Tax AND less National Insurance. For a basic rate taxpayer, £100 in pension only costs £72 in lost take-home pay (saving 20% income tax + 8% NI), compared to relief-at-source where NI is not saved.
Why is take-home pay lower in Scotland for middle and high earners?
Scotland has devolved income tax powers. For 2026/27, the Scottish Parliament uses six tax bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42% on £31,093–£62,430), Advanced (45% on £62,431–£125,140), and Top (48% over £125,140). Anyone earning over approximately £29,000 pays slightly more income tax in Scotland than in the rest of the UK, while those earning under £29,000 pay slightly less due to the 19% starter band.
When do student loan repayments stop coming out of my paycheck?
Student loan deductions automatically stop when: (1) Your total loan balance is fully paid off (HMRC will notify your employer to change your tax code or stop deductions); (2) You reach the statutory write-off age or cancellation period (e.g. 25–30 years depending on your plan, or 40 years for Plan 5); or (3) Your earnings in a specific pay period fall below the weekly or monthly threshold for your plan.
What does tax code 1257L mean on my payslip?
Tax code 1257L is the standard tax code for most UK employees with one job. The '1257' indicates that you are entitled to £12,570 of tax-free personal allowance for the tax year (multiply the number by 10). The letter 'L' means you are entitled to the standard basic personal allowance. If your code ends in 'M' (marriage allowance received), 'N' (marriage allowance transferred), 'BR' (all taxed at 20%), or starts with 'K' (taxable benefits exceed allowance), your withholding will differ.
