🇬🇧 UK · 2026/27 Tax Year · Free

Take-Home Pay Calculator UK 2026/27

Convert your annual salary into exact monthly or weekly take-home pay. See exactly where every penny goes — including pension, student loan, and all tax codes.

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How is take-home pay calculated in the UK?

Your take-home pay (net pay) is your gross salary minus all mandatory deductions. For 2026/27, the main deductions are Income Tax, National Insurance, pension contributions, and student loan repayments.

1. Income Tax (PAYE) 2026/27

Personal Allowance £12,570 (0% tax). Basic Rate 20% on £12,570–£50,270. Higher Rate 40% on £50,270–£125,140. Additional Rate 45% above £125,140.

2. National Insurance 2026/27

0% on earnings up to £12,570. 8% on £12,570–£50,270. 2% on earnings above £50,270.

3. Pension Contributions

Under auto-enrolment, a minimum of 8% of qualifying earnings goes into a pension (5% employee + 3% employer minimum). Salary sacrifice pension saves you both income tax AND National Insurance.

4. Student Loan Repayments

Plan 2 (most graduates 2012–2023): 9% of earnings above £28,470. Plan 1: 9% above £24,990. Plan 4 (Scotland): 9% above £31,395. Plan 5: 9% above £25,000. Postgraduate: 6% above £21,000.

Why does my take-home pay change each month?

PAYE is calculated cumulatively across the tax year. If you were overtaxed in one month (e.g. due to a bonus), your employer automatically reduces tax in later months to compensate. Other reasons for monthly changes: overtime, a tax code update from HMRC, crossing a student loan threshold, or a pension rate change.

Why do Scottish workers take home less than English workers?

Scotland has 6 income tax bands set by the Scottish Parliament. The Higher Rate (42%) starts at £43,662 in Scotland vs £50,270 in England. At a £50,000 salary, a Scottish worker pays approximately £1,542 more income tax per year.

See the full Scotland vs England comparison →

Is your tax code correct?

Millions of workers are overpaying tax because they are on the wrong tax code. Check yours today and make sure you're not giving HMRC too much of your hard-earned cash.

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Frequently asked questions

How is take-home pay calculated in the UK?
Your take-home pay is your gross salary minus Income Tax (PAYE), National Insurance, pension contributions, and student loan repayments. For 2026/27: you pay 0% tax on the first £12,570 (personal allowance), 20% on £12,570–£50,270, and 40% on £50,270–£125,140.
What deductions come out of my salary each month?
The main deductions are: Income Tax (PAYE), National Insurance (Class 1), pension contributions (usually 5% employee minimum under auto-enrolment), and student loan repayments if applicable.
Why does my take-home pay change each month?
Your take-home can change due to: overtime or bonus payments, a change in your tax code, crossing a student loan threshold, a pension contribution rate change, or a mid-year pay rise.
How much NI do I pay in 2026/27?
For a standard Category A employee in 2026/27: 0% on earnings up to £12,570 per year, 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
What is the personal allowance for 2026/27?
The standard Personal Allowance for 2026/27 is £12,570. This is the amount you can earn before paying any income tax.
How does student loan repayment affect my take-home pay?
Student loan repayments are deducted automatically via PAYE. Plan 2 (most graduates from 2012–2023): 9% of earnings above £28,470/year. Plan 1: 9% above £24,990.
Why do Scottish workers take home less than English workers?
Scotland has 6 income tax bands set by the Scottish Parliament. The Higher Rate starts at £43,662 in Scotland vs £50,270 in England, and the rate is 42% vs 40%.
How do pension contributions reduce my tax?
Pension contributions are usually taken before tax is calculated (under Net Pay or Salary Sacrifice arrangements), meaning you don’t pay income tax on the money you put into your pension. This lowers your taxable income.