UK Income Tax and National Insurance 2026/27: How Your Take-Home Pay Is Worked Out
The 2026/27 Personal Allowance, tax bands and employee National Insurance rates, with a step-by-step take-home pay example and the £100,000 trap.
Read the guideUK Salary Calculator
Estimate annual, monthly, and weekly take-home pay using 2026/27 UK income tax and employee NI thresholds (England, Wales and Northern Ireland).
Annual Net Pay£0
Monthly Net Pay£0
Weekly Net Pay£0
Income Tax£0
National Insurance£0
Pension£0
How your UK take-home pay is worked out
This calculator estimates take-home pay for employees in England, Wales and Northern Ireland using 2026/27 Income Tax bands and employee National Insurance. It deducts your pension contribution first, as it would be under salary sacrifice, so the pension reduces both tax and National Insurance.
It assumes the standard 1257L tax code and does not include student loan repayments, benefits in kind or Scottish tax rates.
Worked example with the default values
A salary of £42,000 with a 5% pension contribution:
- Pension: 5% × £42,000 = £2,100, leaving £39,900 of taxable pay
- Income Tax: 20% × (£39,900 − £12,570) = £5,466
- National Insurance: 8% × (£39,900 − £12,570) = £2,186.40
- Take-home pay: £32,247.60 a year, about £2,687 a month
Without the pension, take-home pay would be £33,759.60. So the £2,100 that went into the pension reduced take-home pay by only £1,512, because tax and National Insurance relief covered the rest.
2026/27 rates used
- Personal Allowance £12,570, reduced by £1 for every £2 of income above £100,000.
- Income Tax: 20% basic rate, 40% higher rate from £50,271, 45% additional rate above £125,140.
- Employee National Insurance: 8% between £12,570 and £50,270, then 2%.
- Scotland has its own Income Tax bands; National Insurance is the same across the UK.
Want the full explanation? Read our guide: UK Income Tax and National Insurance 2026/27: How Your Take-Home Pay Is Worked Out.
How to use the UK Salary Calculator
- Enter annual salary, pension contribution assumptions, and other deductions if relevant.
- Review income tax, National Insurance, and net salary together.
- Use the monthly net amount to test housing, savings, and lifestyle decisions.
UK take-home pay formula
Net pay = gross salary − income tax − National Insurance − pension deductions
- Gross salary: Annual earnings before deductions
- Income tax: Estimated tax at current bands
- NI: National Insurance contributions
The result is helpful for understanding real monthly affordability rather than relying on gross salary alone.
Quick planning notes for the UK Salary Calculator
Estimate annual and monthly take-home pay after tax and NI. Start with a realistic baseline, then change one input at a time to see how the result moves. That makes it easier to compare scenarios and spot the trade-offs that matter most.
Salary planning notes
- Test your budget with conservative assumptions so the result still works after variable expenses.
- Compare gross pay, deductions, and savings side by side before committing to a new expense or target.
- Review the output together with tax and retirement pages to get a more realistic monthly plan.
Keep in mind
These results are designed for educational planning. Real-world figures can change based on official rates, lender fees, tax treatment, insurance, and personal circumstances.
People also calculate next
More pages related to this topic
Frequently asked questions
My pension is not salary sacrifice. Does that change the result?
Slightly. Under net pay or relief at source, pension contributions reduce Income Tax but not National Insurance, so your take-home pay would be a little lower than shown.
Does this include student loan repayments?
No. Student loans are repaid at a percentage of earnings above your plan’s threshold, which reduces take-home pay further.
What happens if I earn over £100,000?
Your Personal Allowance is withdrawn gradually until it disappears at £125,140, creating an effective 60% Income Tax rate in that band. Pension contributions can bring income back below £100,000.
Why is my monthly payslip slightly different?
PAYE and National Insurance are calculated pay period by pay period, so rounding, bonuses and changes during the year make each payslip differ a little from an annual estimate.
Guides on this topic
Plain-English explanations to help you read the result above.
Related calculators
Continue with the next tools people often use after this calculation.
Salary Savings Planner
Plan monthly savings from income and expenses.
OpenIncome Tax / NI Calculator
Estimate UK income tax, National Insurance, and net pay.
OpenPension / Retirement Calculator
Project pension pot growth and target retirement balance.
OpenSalary / Paycheck Calculator
Estimate net pay after federal, state, and FICA deductions.
OpenUK Loan Repayment Calculator
Estimate loan repayments, overpayments, and total interest.
OpenFreelancer Income
Estimate freelance revenue after costs and taxes.
Open