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.
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.
What deductions come out of my salary each month?
The main deductions are Income Tax, National Insurance, pension, and student loan. Some employers also deduct childcare vouchers, cycle-to-work scheme payments, or salary sacrifice arrangements for other benefits. These additional deductions reduce your taxable pay further.
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 →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. NI is 8% on £12,570–£50,270 and 2% above that.
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. Some employers also deduct childcare vouchers, cycle-to-work scheme payments, or salary sacrifice arrangements.
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. PAYE is calculated cumulatively, so if you were overtaxed in one month, your employer will automatically reduce tax in later months to compensate.
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. On a £35,000 salary, you pay approximately £1,794 NI per year (£149.50/month).
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. If your income exceeds £100,000, your personal allowance reduces by £1 for every £2 above £100,000, reaching zero at £125,140.
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. Plan 4 (Scotland): 9% above £31,395. Plan 5 (from 2023): 9% above £25,000. Postgraduate loan: 6% above £21,000.
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%. At a £50,000 salary, a Scottish worker pays approximately £1,542 more income tax per year than an equivalent English worker.