What is the income tax personal allowance for 2026/27?

The standard personal allowance for 2026/27 is £12,570. You pay no income tax on earnings up to this amount. The allowance tapers to zero for earnings above £100,000 — at £125,140 the entire allowance is lost, creating a 60% effective marginal rate on income between £100,000 and £125,140.

How much National Insurance do I pay as an employee?

In 2026/27, employees pay 8% NI on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. NI is calculated on a weekly or monthly basis by payroll — the annual figures are used for estimation only. NI applies separately to income tax, meaning both deductions run simultaneously from your gross pay.

How does the 40% higher rate income tax work?

The higher rate of 40% applies to taxable income between £37,700 and £125,140 (taxable income = gross salary minus the personal allowance of £12,570). So higher-rate tax starts when your gross salary exceeds £50,270. Between £100,000 and £125,140, the personal allowance is withdrawn at a rate of £1 per £2 of income, creating an effective 60% marginal rate in that band.

What is take-home pay on a £50,000 salary?

On a £50,000 gross salary in 2026/27 in England, take-home pay is approximately £37,198 per year (£3,100/month). This includes income tax of £7,486, employee NI of £4,232, with no student loan. Pension contributions are not included unless you enter a percentage in the calculator. Scottish residents pay slightly less take-home due to higher tax rates above £43,662.

UK Take-Home Pay Calculator 2026/27 | Salary After Tax, PAYE & NI

After Tax Salary CalculatorAfter Tax Salary

Adjust inputs below — results update instantly.

Tax year 2026/27

Gross annual salary

Hours per week

Tax region

More options

Student loan

Pension contribution

Advanced options

Tax code

NI category

Salary sacrifice (reduces taxable pay)

Monthly net

£2,393.30

Weekly net

£552.30

Daily net

£110.46

Take-home £28,719.60

Income Tax £4,486

NI £1,794.40

Student Loan £0

Pension £0

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HMRC 2026/27 · Methodology

Quick answer: for 2026/27, income tax is 20% / 40% / 45% with a £12,570 personal allowance and employee NI of 8% then 2% above £50,270.

How it works

Three steps to accurate take-home pay

Set your inputs

Choose salary, region, tax code, loan plan and pension.

Compare like-for-like

Keep assumptions fixed to compare net-pay differences properly.

Verify on payslip

Use results for planning, then confirm with payroll output.

Methodology Detailed guides Planning tool, not financial advice

About this tool

HMRC-based salary estimate for quick planning

Uses 2026/27 PAYE income tax bands, employee NI, student loan thresholds and pension assumptions for England, Scotland, Wales and Northern Ireland.

Planning estimate only. See the methodology page for assumptions and sources.

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About your pay

What affects your take-home pay

Your net salary is not a single calculation — it is the result of several deductions applied in a specific order. Understanding each one helps you plan more accurately and spot errors on payslips.

Income tax and Personal Allowance

Everyone gets a tax-free Personal Allowance — £12,570 for 2026/27 in England, Wales and Northern Ireland. Income above that is taxed at 20% (basic), 40% (higher) or 45% (additional). Scotland uses five separate bands. Your tax code adjusts the effective allowance, so a non-standard code can significantly change your monthly net.

National Insurance contributions

Employee NI is charged at 8% on earnings between £12,570 and £50,270, then 2% above that. Unlike income tax, NI has no personal allowance-equivalent deduction for Scotland — it applies UK-wide. For most people on salaries between £20k and £50k, NI is the second-largest deduction after income tax.

Pension contributions and salary sacrifice

Workplace pension contributions reduce gross pay. With salary sacrifice, the pension deduction happens before tax and NI are calculated, which can meaningfully increase take-home versus a standard net-pay arrangement. The auto-enrolment minimum is 5% from the employee and 3% from the employer on qualifying earnings.

Student loan repayments

Student loan repayments are income-contingent, not debt-based. Plan 1 repayments start when earnings exceed £26,900; Plan 2 at £29,385; Plan 4 (Scotland) at £33,795; Plan 5 at £25,000. Repayments are 9% of income above the threshold (15% for postgraduate). The plan type materially changes the monthly deduction, especially for salaries between £25k and £50k.

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Quick reference

UK take-home pay 2026/27 — common salaries

Estimated monthly and annual net pay for England using default PAYE assumptions (tax code 1257L, no student loan, no pension). Income tax rates: 20% basic, 40% higher, 45% additional.

Gross salary	Monthly net	Annual net	Effective rate
£20,000	£1,493	£17,920	10.4%
£25,000	£1,793	£21,520	13.9%
£30,000	£2,093	£25,120	16.3%
£35,000	£2,393	£28,720	17.9%
£40,000	£2,693	£32,320	19.2%
£50,000	£3,293	£39,520	21.0%
£60,000	£3,780	£45,357	24.4%
£75,000	£4,505	£54,057	27.9%
£100,000	£5,713	£68,557	31.4%
£125,000	£6,453	£77,439	38.1%

England only. 2026/27 HMRC rates. No pension, student loan or benefit-in-kind adjustments. Use the calculator to tailor to your situation.

FAQ

Frequently asked questions

How is take-home pay calculated?

Take-home pay starts with gross salary, then PAYE income tax is applied by tax band after your Personal Allowance and tax code settings. National Insurance is calculated separately using NI thresholds and rates. Student loan repayments are then added based on your selected plan threshold and rate, and pension deductions are applied according to your contribution setting and salary sacrifice choice. The final net figure is what remains after all deductions. This calculator uses 2026/27 rules as an estimate and is best used with assumptions that match your own payslip setup.

Does this calculator support Scottish tax rates?

Yes. Scottish income tax uses different bands and rates from England, Wales and Northern Ireland, so region selection materially changes the estimate for many salaries. Scotland currently has five income tax bands: starter (19%), basic (20%), intermediate (21%), higher (42%) and top (48%). National Insurance remains largely UK-wide for employees, which means the main regional difference comes from income tax. If comparing offers across regions, run both versions with identical loan and pension settings.

What is salary sacrifice and does it affect my take-home?

Salary sacrifice is an arrangement where you agree to receive a lower gross salary in exchange for a non-cash benefit — most commonly pension contributions. Because the sacrifice reduces your gross pay before tax and NI are applied, you pay less income tax and NI than you would with a standard employee pension contribution. For a basic-rate taxpayer contributing 5% of a £40,000 salary, salary sacrifice typically saves £200–£400 per year in NI alone compared to a net pay arrangement.

How accurate are these calculations?

These calculations are designed for planning and use official thresholds and rates for the stated tax year. Real payroll can still differ due to non-standard tax codes, taxable benefits, irregular bonuses, prior-period adjustments, or multiple employments. The best way to improve accuracy is to match your tax code, region, loan plan and pension settings to your real payroll profile. Use this tool for structured comparison and budgeting, then validate final figures against your employer payslip.

Why is my monthly pay different from what the calculator shows?

Common reasons include: a non-standard tax code (your employer may have applied a cumulative adjustment or emergency code), pension treatment that differs from the setting you chose, a bonus or irregular payment in the relevant month, benefits-in-kind such as private health or company car that add to your taxable pay, or an attachment of earnings order. If the difference is consistent month-to-month, check your tax code on the HMRC app or a recent P60.

What is the 60% tax trap and does it affect me?

When gross salary falls between £100,000 and £125,140, the Personal Allowance tapers at £1 for every £2 earned above £100,000. This effectively creates a 60% marginal income tax rate in that band (40% tax + 20% extra because allowance is lost). If your salary is in this range, pension salary sacrifice contributions can be used to bring adjusted net income below £100,000 and recover the full allowance. Use the full calculator at the £100k–£125k range to model this.

Is this financial advice?

No. This site provides informational estimates to help with salary planning and scenario comparison. It does not provide personal tax advice, investment advice or regulated financial guidance. For decisions that depend on your full personal circumstances, rely on official HMRC resources and, where appropriate, qualified professional advice.

Sources and methodology

Built on published UK tax-year rates and thresholds

Not financial advice or payroll processing. Use as a planning tool, then confirm against employer payroll for exact treatment.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

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UK take-home pay calculator 2026/27

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