CalcAI
Home/Take-Home Pay Calculator

Take-Home Pay Calculator — UK 2026/27

Income Tax, National Insurance, pension, and student loan — monthly & annual, AI-explained.

£
0%£1,750/yr30%

✦ AI Insights

Get a plain-English explanation of your result — what's driving the numbers and what to consider next.

AI-generated explanation · Not regulated financial advice

UK take-home pay explained — 2026/27 tax rates

Your take-home pay (net pay) is what remains after HMRC deducts Income Tax, National Insurance, and any other deductions from your gross salary. Understanding how these are calculated helps you plan salary negotiations, pension contributions, and year-end tax efficiency. This guide covers the 2026/27 rates for England, Wales, and Northern Ireland.

Income Tax bands 2026/27

Income Tax uses a progressive marginal system. The personal allowance (£12,570) is taxed at 0%. Earnings between £12,570 and £50,270 attract the basic rate of 20% — giving a maximum basic rate bill of £7,540. Between £50,270 and £125,140, the higher rate of 40% applies. Above £125,140, the additional rate of 45% applies and the personal allowance has been fully tapered away. Importantly, the rates only apply to the income within each band — not the whole salary.

National Insurance 2026/27

Employee National Insurance (Class 1) is calculated separately from Income Tax. The primary threshold is £12,570 (aligned with the personal allowance for 2026/27). Between the primary threshold and the upper earnings limit (£50,270), you pay 8%. Above the UEL, the rate drops to 2%. NI is not affected by pension contributions under relief-at-source, but salary sacrifice reduces NI for both employee and employer.

This content is reviewed by Richard Walsh (FCA IFA).

Frequently Asked Questions

How is take-home pay calculated in 2026/27?

Your take-home pay is your gross salary minus Income Tax, National Insurance (Class 1 employee), pension contributions, and student loan repayments. Income Tax uses marginal bands: 0% on the first £12,570 (personal allowance), 20% on £12,570–£50,270 (basic rate), 40% on £50,270–£125,140 (higher rate), and 45% above £125,140 (additional rate). National Insurance: 8% on earnings between £12,570 and £50,270, then 2% above.

What is the personal allowance for 2026/27?

The personal allowance — the amount you can earn before paying Income Tax — is £12,570 for 2026/27, frozen since 2021/22. For incomes above £100,000, the personal allowance reduces by £1 for every £2 of income over the threshold, reaching £0 at £125,140. This creates an effective marginal rate of 60% on earnings between £100,000 and £125,140.

Why is there a 60% effective marginal rate between £100k and £125k?

Between £100,000 and £125,140, every extra £2 you earn costs you £1 of personal allowance. This means you're effectively being taxed on £2 of income for every £1 of additional gross pay — the personal allowance reduction adds the equivalent of a 20% surcharge on top of the 40% higher rate. Salary sacrifice pension contributions between these points are particularly tax-efficient.

How do pension contributions affect take-home pay?

Pension contributions made through relief-at-source reduce your taxable income by the contribution amount, saving income tax at your marginal rate. Salary sacrifice pension contributions also save National Insurance contributions (8% at main rate). For a 20% taxpayer, every £100 of pension contribution costs ~£80 take-home pay. For a 40% taxpayer, it costs ~£60. The pension receives the full £100.

What student loan plan should I select?

Plan 1: Most students who started before September 2012 in England/Wales, or any time in Northern Ireland. Plan 2: English/Welsh students who started after August 2012. Plan 4: Scottish students (any start date). Plan 5: English/Welsh students starting from August 2023 (new plan with updated terms). Postgraduate Loan: separate to undergraduate plans, charged at 6% above £21,000. Check your loan statements or Student Loans Company if unsure.

Does the calculator cover Scotland?

This calculator covers England, Wales, and Northern Ireland income tax rates. Scotland has different income tax bands set by the Scottish Parliament. Scottish taxpayers pay the same UK National Insurance but different income tax rates — the Scottish basic rate is 19% on income £14,877–£26,561, 20% basic rate thereafter, with additional bands. A separate Scottish income tax calculator will be available on CalcAI.

What about employer pension contributions?

This calculator shows your take-home pay after employee pension contributions only. Employer pension contributions don't affect your take-home pay — they go directly into your pension. The combined employee + employer contributions count towards the £60,000 annual allowance. Check your pension scheme documents or payslip for your employer's contribution rate.