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    UK Take-Home Pay Calculator

    Calculate your UK take-home pay with income tax, National Insurance, student loans, and pension. Supports England, Wales, Northern Ireland, and Scotland tax bands for 2026/27.

    Free to use. Runs in your browser.

    Enter your gross salary to see take-home pay after UK income tax, National Insurance, pension contributions, and student loan deductions for the 2026/27 tax year. Switch between rest-of-UK and Scottish bands; covers Plan 1, 2, 4, 5 and Postgraduate Loan.

    £

    Include workplace pension

    🇬🇧 UK Tax Year 2026/27
    UK-only payroll calculation. This tool applies UK PAYE rules: HMRC income tax bands, employee National Insurance, and UK student loan thresholds. The currency selector above is display-only and converts symbols, not tax rules. If you are paid abroad or under a foreign payroll system, use your own country's rules (IRS, CRA, ATO, or local tax authority) and not this calculator.

    General information only. This calculator and the guidance below are not tax, legal, financial, accounting, payroll, or investment advice. Income tax bands, the personal allowance, National Insurance rates and thresholds, student loan repayment thresholds, pension allowances and tapers, tax codes, and salary-sacrifice scheme rules change. Verify your specific situation with HMRC, GOV.UK, Revenue Scotland, GOV.WALES, the Student Loans Company, or a qualified accountant or tax adviser before relying on any figure for filing, payroll, or planning decisions.

    UK Take-Home Pay at a Glance

    Pre-calculated take-home pay for common UK salaries. Rest-of-UK rates (England, Wales, Northern Ireland) for 2026/27, with no pension or student loan deductions applied. Figures use the calculator's own constants for personal allowance, income tax bands, and employee National Insurance.

    Gross SalaryIncome TaxNITake-Home (Year)Take-Home (Month)Effective Rate
    £20,000£1,486£594£17,920£1,49310.4%
    £25,000£2,486£994£21,520£1,79313.9%
    £30,000£3,486£1,394£25,120£2,09316.3%
    £35,000UK Median£4,486£1,794£28,720£2,39317.9%
    £40,000£5,486£2,194£32,320£2,69319.2%
    £45,000£6,486£2,594£35,920£2,99320.2%
    £50,000£7,486£2,994£39,520£3,29321.0%
    £55,000£9,432£3,111£42,457£3,53822.8%
    £60,000£11,432£3,211£45,357£3,78024.4%
    £70,000£15,432£3,411£51,157£4,26326.9%
    £80,000£19,432£3,611£56,957£4,74628.8%
    £90,000£23,432£3,811£62,757£5,23030.3%
    £100,000£27,432£4,011£68,557£5,71331.4%
    £125,140£37,488£4,513£83,139£6,92833.6%
    £150,000£48,675£5,011£96,314£8,02635.8%

    Rest-of-UK rates only. Scotland uses different income tax bands; use the calculator above with the Scotland region selected for Scottish figures. NI is the same across the UK.

    UK Tax Rates and Thresholds 2026/27

    Headline figures sourced from GOV.UK, gov.scot, GOV.WALES, HMRC, and the Student Loans Company. All rates effective 6 April 2026 to 5 April 2027.

    BandTaxable IncomeRate
    Personal AllowanceUp to £12,5700%
    Basic Rate£12,571 to £50,27020%
    Higher Rate£50,271 to £125,14040%
    Additional RateOver £125,14045%

    Welsh Rates of Income Tax (WRIT) currently mirror these rest-of-UK rates in practice; WRIT is set annually by the Senedd and should be checked for the relevant tax year on GOV.WALES. Northern Ireland uses these same rates and bands.

    BandTaxable IncomeRate
    Personal AllowanceUp to £12,5700%
    Starter Rate£12,571 to £16,53719%
    Basic Rate£16,538 to £29,52620%
    Intermediate Rate£29,527 to £43,66221%
    Higher Rate£43,663 to £75,00042%
    Advanced Rate£75,001 to £125,14045%
    Top RateOver £125,14048%

    Scottish bands and thresholds are devolved and set by the Scottish Parliament; verify the latest figures on gov.scot (Scottish Budget). Personal Allowance and the £100,000 taper are set UK-wide. NI is reserved to Westminster and is the same for Scottish taxpayers.

    Earnings (per year)Rate
    Up to £12,5700%
    £12,571 to £50,2708%
    Over £50,2702%

    Employer (secondary) Class 1 NI is 15% above a £5,000 secondary threshold from 6 April 2025 (Autumn 2024 Budget); employer NI does not appear on your payslip but is part of your employer's payroll cost and can affect what salary sacrifice schemes pass back to employees.

    PlanThresholdRateWritten Off
    Plan 1 (pre-2012, England, Wales, NI)£26,9009%25 years (or age 65 on older Plan 1 sub-cohorts)
    Plan 2 (post-2012 England, Wales)£29,3859%30 years after first April due
    Plan 4 (Scotland, SAAS)£33,7959%30 years after first April due
    Plan 5 (post-2023 England)£25,0009%40 years after first April due
    Postgraduate Loan£21,0006%30 years

    Thresholds shown are the 2026/27 figures published by GOV.UK and the Student Loans Company, which the calculator above uses. Thresholds are reviewed annually each April; check the current GOV.UK student loan repayment page if you need to verify a deduction on a specific payslip. Plan 5 and Postgraduate Loan thresholds remain frozen for 2026/27.

    Age GroupHourly Rate
    21 and over (National Living Wage)£12.71
    18 to 20£10.85
    Under 18£8.00
    Apprentice£8.00

    Hourly rates shown are the National Living Wage and National Minimum Wage rates effective from 1 April 2026, as published by GOV.UK. Verify against the current GOV.UK page before relying on them for payroll, contracts, or compliance.

    AllowanceAmount
    Personal Allowance£12,570
    Marriage Allowance transfer£1,260 (saves up to £252 per year)
    Blind Person's Allowance£3,250
    Personal Savings Allowance (basic rate)£1,000
    Personal Savings Allowance (higher rate)£500
    Dividend Allowance£500
    Capital Gains Tax Annual Exempt Amount£3,000
    ISA Annual Allowance£20,000
    Pension Annual Allowance£60,000 (tapered for high earners)
    Pension Lifetime AllowanceAbolished (April 2024)
    HMRC Mileage (first 10,000 business miles)45p per mile
    HMRC Mileage (over 10,000 business miles)25p per mile
    Working from Home tax relief (employee)Not available to employees for 2026/27 under current GOV.UK rules; check GOV.UK if rules change

    Rates shown are the calculator's working values for the 2026/27 tax year (6 April 2026 to 5 April 2027). HMRC, gov.scot, GOV.WALES, and the Student Loans Company update these annually; verify current figures with the relevant authority before relying on them.

    Rest-of-UK vs Scotland: Take-Home Comparison

    Scotland uses six income tax bands instead of three. Below about £33,500 Scottish taxpayers usually pay slightly less than rest-of-UK taxpayers thanks to the 19% starter rate; above the crossover Scotland pays more, with the gap widening once the Scottish higher rate (42%) kicks in at £43,663, well below the rest-of-UK higher-rate threshold of £50,270. NI is the same UK-wide.

    Gross SalaryRest-of-UK Take-HomeScotland Take-HomeDifference
    £30,000£25,120£25,155Scotland keeps £35 more
    £40,000£32,320£32,255Scotland keeps £65 less
    £50,000£39,520£38,024Scotland keeps £1496 less
    £75,000£54,057£52,007Scotland keeps £2050 less
    £100,000£68,557£65,257Scotland keeps £3300 less

    Take-home figures use the calculator's own constants (2026/27 personal allowance £12,570, rest-of-UK and Scottish bands as updated on this page, employee NI 8% / 2% with thresholds £12,570 and £50,270). No pension or student loan assumed. Verify against your specific situation; payslip differences can come from tax codes, benefits in kind, or salary sacrifice.

    The £100,000 Tax Trap

    Between £100,000 and £125,140, you lose £1 of personal allowance for every £2 earned above £100,000. For rest-of-UK taxpayers this creates a 60% income-tax marginal rate in this strip (often discussed as 62% when employee NI at 2% applies). It is one of the most widely discussed marginal-rate traps in the UK system; Scottish bands and other interactions (student loan, the High Income Child Benefit Charge) can produce different combined rates depending on circumstances.

    A rest-of-UK earner on £100,000 takes home about £68,557 in this calculator. At £125,140 the calculator returns about £83,139. The personal-allowance taper between £100,000 and £125,140 still creates a 60% income-tax marginal effect (about 62% with employee NI) under HMRC's strict treatment, which is why pension contributions and salary sacrifice are commonly used to bring adjusted net income below £100,000. Scottish taxpayers face the same structural taper but with different underlying income-tax rates; cross-check on the Income Tax Calculator with the Scotland region selected.

    Effective Marginal Rate by Salary Band (rest-of-UK)

    28%
    42%
    60%
    42%
    47%

    Worked Example: Pension Contribution at £110,000

    A rest-of-UK earner on £110,000 pays roughly £33,432 in income tax and £4,211 in employee NI under PAYE; their personal allowance has tapered to £7,570. A £10,000 salary-sacrifice pension contribution brings the taxable salary to £100,000, restoring the full £12,570 personal allowance. Income tax falls to approximately £27,432 (a saving of about £6,000) and employee NI falls to about £4,011 (a saving of about £200). The total saving of around £6,200, plus £10,000 in the pension pot, means the £10,000 contribution costs roughly £3,800 in cash terms. Exact figures depend on the salary-sacrifice scheme rules and any employer NI rebate; check with payroll or a qualified adviser before changing your salary.

    Strategies to Manage the Trap

    Pension contributions, contribute enough to bring adjusted net income below £100,000
    Salary sacrifice, reduces gross pay before tax and NI; usually combined with the pension route
    Gift Aid donations, extends the basic-rate band and effectively reduces adjusted net income
    Non-cash benefits, some non-cash benefits and pension contributions paid by the employer do not count toward adjusted net income; verify scheme details

    Worked Example: Anya Earns £55,000 PAYE in England for 2026/27

    Anya is a UK employee on a £55,000 gross salary in 2026/27, paid through PAYE in England. She has the standard 1257L tax code, no other taxable income, no pension contribution, and no student loan deduction. The calculation below tracks the income tax and employee NI steps that produce her take-home pay.

    StepAmount
    Personal Allowance (no taper at £55,000)£12,570
    Taxable income (£55,000 minus £12,570)£42,430
    Basic rate slice: £37,700 at 20% (£12,571 to £50,270)£7,540.00
    Higher rate slice: £4,730 at 40% (£50,271 to £55,000)£1,892.00
    Total income tax£9,432.00
    Employee NI: 8% on £37,700 (£12,571 to £50,270)£3,016.00
    Employee NI: 2% on £4,730 (above £50,270)£94.60
    Total employee NI£3,110.60
    Total deductions (income tax + NI)£12,542.60
    Take-home pay (annual)£42,457.40
    Approximate monthly take-home£3,538.12
    Effective deduction rate (income tax + NI)about 22.8%

    This is a simplified PAYE example using the 2026/27 rest-of-UK constants the calculator implements. It excludes student loan repayments, workplace pension contributions, salary sacrifice arrangements, taxable benefits in kind, non-standard tax-code adjustments, the High Income Child Benefit Charge, and any Scottish or Welsh devolved differences. Add a student loan plan or a pension contribution in the calculator above to see how those interact with Anya's figures.

    8 Ways to Reduce Your Tax Bill Legally

    Practical strategies available to most UK PAYE taxpayers in 2026/27. All are legal and HMRC-recognised; specific decisions should be checked with your payroll team or a qualified accountant or financial adviser.

    1. Check your tax code

    The standard PAYE personal allowance code for 2026/27 is 1257L. Check your payslip; if it looks wrong, contact HMRC via your Personal Tax Account or call 0300 200 3300.

    Est. saving: potentially up to thousands per year if a wrong code is corrected

    2. Claim Marriage Allowance if eligible

    If your partner earns under £12,570 and you are a basic-rate taxpayer, they can transfer £1,260 of unused allowance to you. The claim can usually be backdated up to 4 tax years.

    Est. saving: up to £252 per year, plus backdated years where eligible

    3. Use salary sacrifice for pension contributions

    Salary sacrifice reduces your gross pay before income tax and employee NI are calculated, so you save both. Check whether your employer passes back any of their employer NI saving and how the scheme affects mortgage affordability and statutory pay.

    Est. saving: depends on your marginal rate and NI band

    4. Use your full ISA allowance

    Up to £20,000 per tax year across cash, stocks and shares, innovative finance, and Lifetime ISAs combined. Interest, dividends, and gains inside the wrapper are tax-free.

    Est. saving: depends on returns and how much you would otherwise pay in tax

    5. Working from home tax relief is not available for 2026/27

    Under current GOV.UK guidance, employees cannot claim working from home tax relief for the period 6 April 2026 to 5 April 2027. Do not rely on older WFH relief guidance shared on personal-finance sites; check GOV.UK directly if rules change in a future tax year.

    Est. saving: not available to employees in 2026/27

    6. Cycle to Work scheme

    Salary sacrifice for a bike and accessories. The percentage saving depends on your marginal income tax rate and employee NI rate (about 32% for basic-rate, about 42% for higher-rate). Some employers cap the eligible amount.

    Est. saving: varies with marginal rate and employer scheme

    7. Claim tax relief on professional subscriptions

    If you pay for a subscription on HMRC's approved professional bodies list (for example ACCA, BMA, RIBA, IET), you can claim tax relief through your tax code or Self Assessment.

    Est. saving: annual subscription multiplied by your marginal rate

    8. Check before overpaying student loans

    Plan 2 borrowers in particular often do not repay in full before the 30-year write-off; voluntary overpayments can be wasted in those cases. Run the numbers against your projected balance and earnings before adding extra payments.

    Est. saving: potentially significant if overpayment would have been wasted

    Practical Take-Home Pay Strategy

    General considerations for managing UK PAYE take-home pay in 2026/27. Specific decisions need a qualified accountant, payroll specialist, or financial adviser; this is general information only.

    • Check your tax code at the start of each tax year. The standard PAYE code in 2026/27 is 1257L. BR, D0, D1, K, and emergency codes behave very differently and can leave you over- or under-paid for months. HMRC's Personal Tax Account or the latest payslip is the easiest place to verify it.
    • Understand marginal versus effective rate. Marginal rate is the rate on the next £1 you earn; effective rate is the average across your whole salary. A 40% taxpayer can have an effective rate around 25%. Both matter, for different decisions.
    • Pension contributions and salary sacrifice. Pension contributions reduce taxable income at your marginal rate. Salary sacrifice also saves employee NI on the sacrificed amount. Check the scheme's specific rules, including any employer NI rebate, the impact on mortgage affordability, statutory pay, and pension reference earnings.
    • Pick the right student loan plan. The wrong plan in payroll over- or under-collects repayments. Plan 1 (pre-2012 England, Wales, NI), Plan 2 (post-2012 England, Wales), Plan 4 (Scotland), Plan 5 (post-2023 England), and Postgraduate Loan all have different thresholds and rules. Confirm against your Student Loans Company online account.
    • Scotland, Wales, and Northern Ireland differ. Scotland has its own income tax bands (devolved). Welsh Rates of Income Tax currently mirror rest-of-UK rates in practice but are set annually by the Senedd. Northern Ireland uses rest-of-UK rates and bands. NI is reserved to Westminster and is the same across the UK.
    • Benefits in kind affect take-home pay. Company car, private medical insurance, gym membership, and other taxable benefits show up through your tax code and reduce your effective take-home. They are not modelled in this calculator.
    • High Income Child Benefit Charge. Where one partner has adjusted net income above the current threshold and either partner receives Child Benefit, HICBC claws some or all of the Child Benefit back through Self Assessment. Check current GOV.UK guidance for the threshold, rate, and reporting rules.
    • Working from home tax relief is not available to employees for 2026/27. Under current GOV.UK guidance, employees cannot claim working from home tax relief for the period 6 April 2026 to 5 April 2027. Older personal-finance write-ups still describe a flat-rate £6 per week claim; do not rely on that guidance. Check GOV.UK directly before claiming if the rules change in a future tax year.
    • Get advice before structural changes. Salary sacrifice, share-based remuneration, becoming self-employed, incorporating a limited company, or moving abroad all interact with income tax, NI, pensions, statutory benefits, and HMRC reporting in non-obvious ways. A qualified accountant or financial adviser is usually the most cost-effective route before making the change, not after.

    Limitations of This Calculator

    This is a simplified estimate, not a payslip or a full Self Assessment return. The calculator covers PAYE income tax, employee National Insurance, salary-sacrifice or relief-at-source pension contributions (at a percentage), and student loan repayments at 2026/27 rates only. Specifically:

    • Standard tax code assumed. The calculator assumes the full personal allowance applies via a 1257L-style code with the standard £100,000 taper. It does not model Marriage Allowance transfers, Blind Person's Allowance, or non-standard tax codes such as BR, D0, D1, K, or emergency codes.
    • No benefits in kind (BIK). Company cars, private medical insurance, gym membership, and other taxable benefits are out of scope.
    • No High Income Child Benefit Charge (HICBC). HICBC can substantially raise the effective marginal rate around the relevant threshold; verify with GOV.UK if your household receives Child Benefit.
    • No Marriage Allowance modelling. If a transfer is in place, your effective tax bill can differ from this calculator's output by up to about £252 per year.
    • No dividends, savings, foreign, rental, or trust income. Dividend and savings allowances and foreign tax credits are not included; use the Dividend Tax Calculator or Capital Gains Tax Calculator separately.
    • Employer NI not displayed as a deduction. Employer (secondary) Class 1 NI is paid by your employer (15% above £5,000 from 6 April 2025) and does not appear on your payslip; the calculator does not break it out as a separate line.
    • Salary sacrifice is generic. Specific schemes vary in what they sacrifice, how employer NI rebates are treated, and how reference earnings for pension or statutory pay are calculated. Check your scheme's rules with payroll.
    • Student loan plan rules depend on country, course, and start date. The wrong plan in payroll over- or under-collects repayments; thresholds and rates also change. Verify your plan and current threshold with the Student Loans Company.
    • Welsh rates and Scottish bands. Welsh Rates of Income Tax currently mirror the rest-of-UK rates in practice but are set annually by the Senedd. Scottish bands are devolved and differ; the calculator models the Scottish bands separately when you select the Scotland region.
    • Currency selector is display-only. The pound, dollar, and euro toggles change the symbol shown, not the underlying tax rules. UK PAYE rules apply throughout.

    For decisions that turn on more than a few hundred pounds, get a personal calculation from a qualified accountant, tax adviser, or payroll specialist using your full income and circumstances.

    Different Populations: How Take-Home Pay Differs

    Take-home pay varies a lot depending on where you live, how you earn, and what other deductions or income types you have.

    SituationTypical take-home position
    England, Wales, or Northern Ireland PAYE employeeStandard rest-of-UK income tax bands (0% / 20% / 40% / 45%) plus employee NI (8% / 2%). Tax collected via PAYE through the tax code; most employees never file Self Assessment unless other income or HICBC applies.
    Scottish taxpayerSix Scottish bands apply to non-savings, non-dividend income (19% / 20% / 21% / 42% / 45% / 48%). NI is the same UK-wide. Below about £33,500 Scotland is slightly cheaper; above the crossover Scotland is more expensive than rest-of-UK.
    Student loan borrowerPlan 1, Plan 2, Plan 4, Plan 5, or Postgraduate Loan, each with its own threshold and rate. Employer collects on top of income tax and NI under PAYE. The wrong plan in payroll over- or under-collects; check with the Student Loans Company.
    Pension contributor or salary-sacrifice userSalary sacrifice reduces gross pay before tax and NI; relief at source gives basic-rate relief at source and higher-rate or additional-rate relief via Self Assessment. Annual allowance is £60,000 (2026/27) but tapers for high earners with threshold income above £200,000 and adjusted income above £260,000, falling to a £10,000 floor; the Money Purchase Annual Allowance (£10,000) restricts further DC contributions for those who have flexibly accessed pensions.
    Limited-company directorTypically a small salary plus dividends. The salary side is closer to this calculator's PAYE logic; dividends are taxed separately at the dividend rates (10.75% / 35.75% / 39.35% in 2026/27 above the £500 dividend allowance). Use the Dividend Tax Calculator for the dividend side.
    Self-employed sole traderProfits taxed under Self Assessment at the same income tax bands; Class 4 NI applies on profits above the lower profits limit; Class 2 NI rules have changed in recent years. This calculator does not model Self Assessment; use the Income Tax Calculator and check current GOV.UK guidance for self-employed NI.
    Person with benefits in kind or a second jobBenefits in kind (company car, private medical) and second jobs flow through your tax code and your employer's payroll. A second-job code such as BR or D0 taxes that job at basic or higher rate from the first pound. Take-home from this calculator does not capture either; verify on your payslip and tax code.

    For non-UK comparisons, the position changes year to year and the precise figures should be verified with the relevant authority (HMRC, IRS, CRA, ATO).

    Common Take-Home Pay Mistakes

    Confusing gross salary with take-home pay

    Gross salary is what you earn before deductions; take-home pay is what lands in your bank account after income tax, employee NI, student loan, and pension contributions. The headline gross-salary figure on a job ad is not what you receive each month.

    Forgetting student loan deductions

    Plan 1, Plan 2, Plan 4, and Plan 5 all repay 9% above their respective thresholds; Postgraduate Loan repays 6% above £21,000. If you have multiple loans (for example Plan 2 plus a Postgraduate Loan) both can apply at the same time. The wrong plan in payroll over- or under-collects.

    Using the wrong region (rest-of-UK vs Scotland)

    Your income tax region is set by where you live, not by where you work or where your employer is registered. Scottish residents pay Scottish income tax (devolved bands) on non-savings, non-dividend income. NI is the same UK-wide.

    Ignoring the £100,000 personal allowance taper

    Between £100,000 and £125,140 the personal allowance is tapered away, creating a 60% income-tax marginal effect (about 62% with employee NI) for rest-of-UK taxpayers. A pay rise into this strip can deliver less than half of its gross to take-home; salary sacrifice is the most common mitigation.

    Assuming salary sacrifice is always best

    Salary sacrifice usually saves income tax and employee NI, but it also lowers the gross figure mortgage lenders and statutory pay schemes use, can affect pension reference earnings, and is not allowed below the National Living Wage. Check your scheme's specific rules and your wider financial situation before signing up.

    Trusting an old or incorrect tax code

    Codes like BR, D0, D1, K, or emergency codes behave very differently from the standard 1257L. A wrong code can leave you over- or under-paid for months. Check it on every payslip and at the start of each tax year via your HMRC Personal Tax Account.

    UK Salary Benchmarks

    Approximate medians from recent ONS Annual Survey of Hours and Earnings (ASHE) data. ASHE figures are released by ONS each autumn for the previous tax year; verify against the latest ASHE release before quoting precise figures.

    £35,000

    UK Median

    +27%

    London Premium

    £60,000+

    Top 10%

    Average Salary by Region

    RegionMedian Salaryvs UK Median
    London£44,370+27%
    South East£36,800+5%
    East of England£35,200+1%
    Scotland£34,700-1%
    South West£33,600-4%
    West Midlands£33,200-5%
    North West£33,100-5%
    East Midlands£32,600-7%
    Yorkshire and Humber£32,200-8%
    Wales£31,800-9%
    North East£31,200-11%
    Northern Ireland£30,800-12%
    UK Median£35,0000%

    UK Salary Percentiles

    PercentileSalaryWhat It Means
    Top 1%£180,000+Senior executives, partners, specialists
    Top 5%£80,000+Senior management, tech leads, medical consultants
    Top 10%£60,000+Experienced professionals, mid-level management
    Top 25%£45,000+Established professionals
    Median (50%)£35,000Half earn more, half earn less
    Bottom 25%£25,000Entry-level, part-time, lower-skilled roles

    Average Salary by Age Group

    Age GroupMedian Salary
    18 to 21£18,000
    22 to 29£28,500
    30 to 39£36,000
    40 to 49£39,500
    50 to 59£37,000
    60 and over£32,000

    Source: ONS Annual Survey of Hours and Earnings (ASHE), most recent published release. Figures are approximate median full-time earnings and should be checked against the current ONS publication before relying on them.

    Sources

    • GOV.UK: Income Tax rates and Personal Allowances (2026/27)
    • gov.scot: Scottish Income Tax rates and bands (Scottish Budget)
    • GOV.WALES: Welsh Rates of Income Tax
    • HMRC: National Insurance rates and categories (employee Class 1 PT, UEL)
    • HMRC: Rates and thresholds for employers (employer Class 1, Secondary Threshold, Employment Allowance)
    • GOV.UK: Repaying your student loan (current Plan 1, 2, 4, 5, and Postgraduate thresholds)
    • Student Loans Company: published threshold updates
    • GOV.UK: Tax codes (1257L and other codes)
    • GOV.UK: Tax on your private pension contributions (annual allowance, taper, MPAA)
    • GOV.UK: High Income Child Benefit Charge
    • GOV.UK: Working from home tax relief (current eligibility)
    • ONS: Annual Survey of Hours and Earnings (latest available release)

    How to use this tool

    1

    Enter your gross annual salary

    2

    Select your region (England, Wales, and Northern Ireland use the rest-of-UK bands; Scotland uses its own)

    3

    Set your pension contribution percentage and choose salary sacrifice if applicable

    Common uses

    • Calculating your monthly take-home pay from a gross salary
    • Comparing England, Wales, Northern Ireland and Scotland on the same salary
    • Understanding student loan repayment deductions across Plans 1, 2, 4, 5, and Postgraduate
    • Modelling pension contributions and salary sacrifice on net pay
    • Estimating the impact of a pay rise or new job offer after tax

    Share this tool

    Frequently Asked Questions

    How is take-home pay calculated in the UK?
    Your employer deducts income tax and National Insurance from your gross salary, plus any student loan repayment and workplace pension contribution. What remains is your take-home (net) pay. Income tax is calculated using HMRC bands: you only pay each rate on the portion of income within that band, not your whole salary.
    What is the personal allowance for 2026/27?
    The personal allowance is £12,570 for 2026/27. This is the amount you can earn before paying any income tax. It has been frozen at this level since 2021/22 and is currently scheduled to remain frozen until at least April 2028.
    How much tax do I pay on a £50,000 salary?
    On a £50,000 salary (rest-of-UK), 2026/27, you pay £7,486 in income tax and approximately £2,994 in employee National Insurance, leaving roughly £39,520 take-home (about £3,293 per month). Your effective deduction rate is around 21.0%.
    What is the difference between rest-of-UK and Scottish tax rates?
    England, Wales, and Northern Ireland have three main income tax bands (20%, 40%, 45%) above the personal allowance. Scotland has six bands (19%, 20%, 21%, 42%, 45%, 48%). Below about £33,500 Scottish taxpayers usually pay slightly less than rest-of-UK taxpayers; above that crossover Scotland pays more, with the gap widening once Scottish higher rate (42%) kicks in at £43,663. Employee National Insurance is the same across the UK because NI is reserved to Westminster, not devolved.
    Do I pay National Insurance on pension contributions?
    It depends on the method. With salary sacrifice, your gross pay is reduced before NI is calculated, so you save employee NI on the sacrificed amount (8% within the £12,570 to £50,270 main band, 2% above). With relief at source (the more common workplace pension default), you still pay employee NI on the full salary; you receive 20% basic-rate income tax relief at source and can claim higher-rate or additional-rate relief via Self Assessment. Employer NI is also affected: from 6 April 2025 the employer (secondary) Class 1 rate is 15% above a £5,000 secondary threshold (Autumn 2024 Budget), and many salary sacrifice schemes pass some of this saving back to the employee.
    Which student loan plan am I on?
    Plan 1: undergraduate loan started before September 2012 (England, Wales) or in Northern Ireland at any time. Plan 2: started September 2012 onwards in England or Wales. Plan 4: studied in Scotland (administered through SAAS). Plan 5: started September 2023 onwards in England. Postgraduate Loan: covers postgraduate Master's and Doctoral loans. If unsure, check your Student Loans Company online account; the wrong plan in payroll can over- or under-collect repayments.
    What is salary sacrifice and is it worth it?
    Salary sacrifice is an agreement to reduce your gross salary in exchange for a non-cash benefit, most commonly a workplace pension contribution. You save income tax (at your marginal rate) and employee National Insurance on the sacrificed amount. The exact saving depends on your marginal tax rate, your NI band, and any employer NI rebate the scheme passes back. Schemes vary: some cap the sacrificeable amount, some affect mortgage affordability, statutory pay, or pension reference earnings. Get the scheme's specific rules from your payroll team before agreeing.
    Why is my effective tax rate different from my tax band?
    Your tax band (e.g. 40%) applies only to income within that band. Your effective rate is the blended average across all bands plus NI. Someone in the 40% band typically has an effective rate of about 20% to 30% because the first £12,570 is tax-free and the next £37,700 is taxed at only 20%. Marginal and effective rates are different concepts; both matter for different decisions.
    How does the £100,000 tax trap work?
    Between £100,000 and £125,140, you lose £1 of personal allowance for every £2 earned above £100,000. For rest-of-UK taxpayers this creates a 60% marginal income-tax effect in this strip (often discussed as 62% when employee NI at 2% applies). Pension contributions or salary sacrifice can bring adjusted net income below £100,000 and restore the full allowance. Scotland and other interactions (student loan, the High Income Child Benefit Charge) can produce different combined rates depending on circumstances.
    Can I reduce my tax bill legally?
    Yes. Common methods: pension contributions or salary sacrifice (especially helpful for the £100,000 taper), claiming higher-rate or additional-rate pension relief via Self Assessment, using your full £20,000 ISA allowance for savings and investment income, claiming Marriage Allowance if eligible (up to £252 per year), checking your tax code is correct (should be 1257L for the standard PAYE personal allowance in 2026/27), and (for self-employed taxpayers) using allowable business expenses. Note that under current GOV.UK guidance, employees cannot claim working from home tax relief for 6 April 2026 to 5 April 2027; do not rely on older WFH guidance, and check GOV.UK before claiming if rules change. Decisions that move material money are best run past a qualified accountant or financial adviser.

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