How to Calculate UK Take-Home Pay 2026/27
Your gross salary and your take-home pay are very different numbers. Between income tax, National Insurance, pension contributions, and potentially student loan repayments, a typical UK employee pays 20–40% of their salary in deductions before anything reaches their bank account. This guide explains exactly how the calculation works.
Rates for 2026/27 tax year (6 April 2026 – 5 April 2027) · Source: GOV.UK, HMRC
Get your exact take-home figure
Enter your salary, pension contribution, and student loan plan to see your monthly and annual take-home pay with a full tax breakdown.
Open take-home pay calculator →Step 1 — Income tax bands 2026/27
Income tax in England, Wales and Northern Ireland operates in bands. You pay a different rate on each portion of your income — not a flat rate on all of it.
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scottish taxpayers pay different rates. Scotland has five income tax bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), and Top (48%). The thresholds also differ.
Step 2 — National Insurance 2026/27
Employees pay Class 1 National Insurance on their gross earnings. The 2024 cuts reduced the main rate from 12% to 8%:
| Earnings band (annual) | Employee NIC rate |
|---|---|
| Up to £12,570 (Primary Threshold) | 0% |
| £12,571 – £50,270 (Upper Earnings Limit) | 8% |
| Over £50,270 | 2% |
Step 3 — Worked examples
£30,000 salary
£50,000 salary
£80,000 salary
Examples assume England/Wales, standard personal allowance, no pension contributions, and no student loan repayments. Use the calculator above for your exact figures.
Student loan repayments
Student loan repayments are calculated on your income above the repayment threshold for your plan type. They are collected through PAYE in the same way as tax and NIC:
| Plan | Threshold (2026/27) | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate (PGL) | £21,000 | 6% |
Frequently asked questions
What is the personal allowance for 2026/27?
The personal allowance is £12,570 — the amount you can earn before paying any income tax. It has been frozen at this level since 2021/22 and is set to remain frozen until at least 2027/28 under current government policy.
How much National Insurance do I pay as an employee in 2026/27?
You pay Class 1 employee NIC at 8% on earnings between the Primary Threshold (£12,570/year) and the Upper Earnings Limit (£50,270/year), and 2% on earnings above £50,270. The employee NIC rate dropped from 12% to 10% in January 2024 and then to 8% in April 2024.
What is the higher rate income tax threshold?
The higher rate (40%) applies to taxable income between £50,271 and £125,140. Above £125,140, the additional rate of 45% applies. Scottish residents pay different rates — the Scottish Income Tax has five bands ranging from 19% to 48%.
When does the personal allowance start to reduce?
The personal allowance reduces by £1 for every £2 you earn above £100,000. At £125,140 it is zero. This creates an effective 60% marginal tax rate on earnings between £100,000 and £125,140 — a well-known quirk of the UK tax system.
How much do student loan repayments reduce take-home pay?
Plan 1 loans: 9% on income above £24,990/year. Plan 2 loans: 9% on income above £27,295/year. Plan 5 loans (from 2023): 9% on income above £25,000/year. Postgraduate loans: 6% on income above £21,000/year.
Does my employer's pension contribution affect my tax?
Employer contributions to your pension do not count as your taxable income. Your own contributions to a workplace pension (salary sacrifice scheme) reduce your gross pay before tax and NIC are calculated, saving you both income tax and National Insurance on the amount contributed.