UK Take-Home Pay Calculator
Find out exactly how much of your UK salary you keep after PAYE income tax, National Insurance (NI), and pension contributions are deducted. This calculator uses current 2026-27 England, Wales, and Northern Ireland bands including the £12,570 Personal Allowance.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
UK Take-Home Pay Calculator
PAYE, National Insurance & Pension (2026-27)
📐 Formula & Method
PAYE Income Tax (2026-27)
The Personal Allowance reduces by £1 for every £2 earned above £100,000, disappearing entirely at £125,140. Scotland has separate income tax bands.
National Insurance (Class 1 Employee, 2026-27)
The Primary Threshold (PT) is £12,570 and the Upper Earnings Limit (UEL) is £50,270. Employee main rate remains 8%, with 2% above the UEL.
Pension Contribution
Relief at Source pension contributions reduce your take-home pay. The minimum auto-enrolment contribution is 5% employee + 3% employer (total 8% of qualifying earnings).
📋 How to Use
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1
Enter your annual gross salary (your salary before any tax or deductions).
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2
Enter your pension contribution percentage (typically 5% for auto-enrolment minimum).
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3
Select the tax year — use 2026-27 for the current year.
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4
Click Calculate to see your monthly take-home pay, income tax, NI, and full annual breakdown.
💡 Key Insights
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The "60% effective tax trap": between £100,000 and £125,140 every £2 earned removes £1 of personal allowance, creating a 60% marginal rate plus 2% NI = 62%.
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Salary sacrifice pension contributions reduce both Income Tax and NI — typically saving 32% (basic), 42% (higher), or 47% (additional rate) per £1 sacrificed.
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Scottish income tax is separate and has more bands (19%, 20%, 21%, 42%, 47%) — our standard calculation reflects England/Wales/NI.
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NI is capped per pay period in real PAYE, but our annualised view gives an accurate full-year net.
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A £100,000 salary nets roughly £67,803/yr in England — but only £64,600 in Scotland due to higher Scottish bands.
🧮 Worked Examples
Basic-rate earner, £35,000
England/Wales/NI taxpayer, no pension contribution.
Higher-rate earner, £75,000, 5% pension
Higher-rate band with 5% salary sacrifice pension contribution.
📊 How to Interpret Your Result
Effective tax + NI under 25%
Mostly basic-rate income. Top up pension to claim full 20% tax relief and grow ISA savings.
Effective rate 25–35%
Higher-rate band. Maximise pension salary sacrifice — your marginal saving is 42%.
Effective rate over 35%
Likely in the £100k–£125k trap or above. Bigger pension contributions reduce your marginal tax dramatically.
⚠️ Common Mistakes to Avoid
Forgetting the personal allowance taper above £100k.
Fix: For every £2 over £100k, you lose £1 of allowance. Above £125,140 the allowance is zero — that's the 60% effective trap.
Confusing employee NI with employer NI.
Fix: You only pay employee NI (8% / 2%). Employer NI of 13.8% is a separate cost paid by the employer.
Applying Scottish bands to UK take-home (or vice versa).
Fix: Scotland has different income tax bands. This calculator uses England/Wales/NI rates.
Forgetting Student Loan plans.
Fix: Plan 2 deducts 9% above £27,295/yr; Plan 5 above £25,000/yr. Add this separately if applicable.
🎯 Who This Calculator Is For
UK employees comparing jobs
Convert different salary offers to comparable net take-home.
Mortgage applicants
Lenders look at net + pension to size affordability.
Inbound expats
See your real UK net pay before relocation decisions.
UK Income Tax and National Insurance Explained
In the UK, income tax is collected via PAYE (Pay As You Earn) — your employer deducts tax directly from each payslip before paying you. The amount deducted depends on your tax code and income. Most people have the standard tax code 1257L, which reflects the £12,570 Personal Allowance for 2026-27.
On a £40,000 salary in 2026-27, you would pay approximately £5,086 in income tax after a 5% pension contribution and about £2,034 in National Insurance, leaving around £30,880 per year or £2,573 per month.
The Personal Allowance, higher-rate threshold, National Insurance Primary Threshold, and Upper Earnings Limit remain frozen for 2026-27, so the main calculation is similar to 2025-26.
Scotland has its own income tax rates set by the Scottish Parliament, which differ from the rest of the UK. Scottish taxpayers pay the Scottish rates on their non-savings income. This calculator uses England, Wales, and Northern Ireland rates.
🔬 Methodology & Accuracy
Formula: Applies the UK 2026-27 personal allowance (£12,570, tapered above £100k), England/Wales/NI Income Tax bands (20/40/45%), and Class 1 employee NI (8% main rate, 2% additional rate above £50,270). Pension contributions are deducted before income tax in this model.
Data sources: GOV.UK income tax rates and allowances: https://www.gov.uk/income-tax-rates; GOV.UK employer rates and thresholds 2026-27: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
Last reviewed: June 2026 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.
Accuracy & Feedback
❓ Frequently Asked Questions
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