Take-Home Pay Calculator

How UK take-home pay is calculated

Your gross salary is reduced by three main deductions: income tax, National Insurance (NI), and, where applicable, a student loan repayment or pension contribution. Income tax uses a series of bands: the first £12,570 is tax-free (Personal Allowance), the next £37,700 is taxed at 20% (basic rate), income between £50,271 and £125,140 at 40% (higher rate), and anything above at 45% (additional rate). Scotland uses its own six-band Scottish Rate of Income Tax (SRIT), which is different and often results in a higher liability for mid-to-high earners.

National Insurance is charged at 8% on earnings between £12,570 and £50,270 per year, and 2% above the Upper Earnings Limit. Salary-sacrifice pension contributions reduce your taxable pay before both income tax and NI are applied, this makes them the most tax-efficient contribution method available. The calculator on this page uses the verified 2026/27 rates sourced from HMRC and Revenue Scotland.

Frequently asked questions

What is the personal allowance for 2026/27?

The standard Personal Allowance is £12,570 for 2026/27, frozen until April 2031. It is tapered away by £1 for every £2 of income above £100,000, disappearing entirely at £125,140.

How is income tax calculated in Scotland for 2026/27?

Scotland uses the Scottish Rate of Income Tax (SRIT) with six bands: Starter (19%) on taxable income £0 to £3,967; Basic (20%) £3,967 to £16,956; Intermediate (21%) £16,956 to £31,092; Higher (42%) £31,092 to £62,430; Advanced (45%) up to taxable £112,570; and Top (48%) above that. NI contributions use the same UK-wide rates as England, Wales and Northern Ireland.

What are the 2026/27 National Insurance rates for employees?

For the 2026/27 tax year employees pay 8% NI on weekly earnings between the Primary Threshold (£242/week, £12,570/year) and the Upper Earnings Limit (£967/week, £50,270/year), and 2% on any earnings above the UEL. The first £12,570 is NI-free.

Does Wales use different income tax rates?

Wales has a Welsh Rate of Income Tax (WRIT), but for 2026/27 the Senedd has set WRIT at the same effective rates as England, basic 20%, higher 40%, additional 45%. In practice your take-home pay is identical to an equivalent English salary.

How does salary sacrifice pension reduce my tax?

A salary-sacrifice pension contribution reduces your gross salary before income tax and National Insurance are calculated. This means you save tax AND NI on the contribution, unlike relief-at-source or net-pay arrangements which only save you income tax. The exact saving depends on your marginal rate: a higher-rate taxpayer saves 40% income tax plus 2% NI on a salary-sacrifice contribution.

Note: Wales mirrors England for income tax in 2026/27 (same effective rates); Northern Ireland also uses the rUK bands. Only Scotland has materially different income tax rates.