UK Take-Home Pay Calculator
Estimate annual and average pay after Income Tax, employee National Insurance, pension salary sacrifice, one undergraduate student-loan plan, a postgraduate loan and other payroll deductions. Choose Scotland or the rest of the UK and model a one-off bonus in one pay period.
Last Updated: July 29, 2026Calculate salary after tax and deductions
Use gross employment pay for the UK tax year from 6 April 2026 to 5 April 2027. The calculation assumes one job and the standard Personal Allowance rules.
£39,520.12 annual take-home from £50,000.00 gross pay.
This annual Income Tax estimate uses a standard Personal Allowance of £12,570. NI uses 12 monthly earnings periods and HMRC exact-percentage rounding.
Annual pay breakdown
| Component | Annual amount | Average per pay period |
|---|
Income Tax bands used
| Band | Taxable slice | Rate and tax |
|---|
Pay-period NI and loan deductions
Income Tax is annualised here and is not assigned to one payslip. Tax-code basis and year-to-date pay can change the timing of PAYE.
| Pay period | Cash earnings | NI and loans |
|---|
Calculation steps
What is take-home pay?
Take-home pay is the cash left from employment income after payroll deductions. It is also called net pay or salary after tax.
Your employer starts with gross cash pay, then deducts PAYE Income Tax, employee National Insurance, pension contributions, student or postgraduate loan repayments and other items shown on the payslip. Employer National Insurance is a business cost and must not be subtracted from your pay.
The result is a planning estimate. Exact PAYE depends on your tax code, pay dates, year-to-date pay and tax, taxable benefits, prior adjustments and the employer's payroll method.
How to use this UK Take-Home Pay Calculator
- Enter annual base salary before tax, pension and payroll deductions.
- Add a one-off bonus if it will be paid during 2026/27. The tool places it in the final selected pay period.
- Select Scotland only if HMRC treats you as a Scottish taxpayer. Your workplace alone does not decide the region.
- Choose the frequency that matches your payslip. NI and loan thresholds apply to each earnings period.
- Enter the regular-salary percentage and bonus amount exchanged through a genuine pension salary-sacrifice agreement.
- Select the NI rate group containing the category letter on your payslip.
- Select one active undergraduate plan and add a Postgraduate Loan separately when both deductions operate.
- Add recurring post-tax deductions once per selected pay period, then calculate and review every result table.
Use figures from your employment contract or payslip. Do not enter the employer's own pension contribution or employer NI. Recalculate after a material pay, pension, loan or tax-code change.
UK take-home pay formula
A genuine pension salary sacrifice reduces contractual cash pay before the supported tax, NI and loan calculations. The tool then estimates annual Income Tax and separately calculates NI and loans for every pay period.
Income Tax is progressive. Each slice is charged at its regional rate. Student and Postgraduate Loan deductions use exact pay-period thresholds and are rounded down to whole pounds. Employee NI uses pay-period bands and HMRC's exact-percentage penny rounding.
Worked example: £50,000 salary
Assume an employee earns £50,000 evenly through the year, lives in England, Wales or Northern Ireland, receives the standard £12,570 Personal Allowance, uses standard employee NI rates and has no pension sacrifice or loan.
| Step | Calculation | Amount |
|---|---|---|
| Taxable income | £50,000 - £12,570 | £37,430.00 |
| Income Tax | £37,430 × 20% | £7,486.00 |
| Employee NI | 12 monthly earnings periods | £2,993.88 |
| Annual take-home | £50,000 - tax - NI | £39,520.12 |
| Average monthly take-home | £39,520.12 ÷ 12 | £3,293.34 |
The monthly NI result differs slightly from an annual-threshold shortcut because £1,048 multiplied by 12 is £12,576, while the published annual reference is £12,570. A Scottish taxpayer on the same salary pays about £8,982.05 of Income Tax before other adjustments.
Income Tax bands for England, Wales and Northern Ireland
The following 2026/27 rates apply to ordinary salary income after the available Personal Allowance.
| Band | Taxable income slice | Rate |
|---|---|---|
| Basic rate | First £37,700 | 20% |
| Higher rate | £37,700.01 to £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
With the full allowance, the 40% rate normally starts once total salary exceeds £50,270. Wales uses the same 2026/27 employment-income percentages and bands, although Welsh tax codes normally start with C.
Scottish Income Tax bands for 2026/27
Scottish taxpayers use separate rates for wages, pensions and most other non-savings, non-dividend income. The gross ranges below assume the full standard Personal Allowance.
| Scottish band | Income range with full allowance | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Above £125,140 | 48% |
Plan 4 identifies a student-loan type. It does not decide whether Scottish Income Tax applies. Scottish taxpayer status follows HMRC residence rules, and Scottish codes normally begin with S.
Personal Allowance and the £100,000 taper
The standard Personal Allowance is £12,570. It stays unchanged through £100,000 of adjusted net income, then falls by £1 for every complete £2 above that limit. It reaches zero at £125,140.
This calculator uses supported cash employment pay after salary sacrifice as adjusted net income. Other taxable benefits, savings, dividends, rent or foreign income can reduce the real allowance sooner. A valid salary sacrifice can preserve part of the allowance, but pension limits and wider tax consequences still need separate review.
Employee National Insurance for 2026/27
Employee Class 1 NI is normally calculated for each earnings period, not as one cumulative annual tax. Most workers use the standard 8% and 2% group.
| Employee NI group | Main-band rate | Rate above upper limit |
|---|---|---|
| A, F, H, M, N or V | 8% | 2% |
| B, E or I | 1.85% | 2% |
| D, J, L or Z | 2% | 2% |
| C, K or S | Nil | Nil |
The weekly Primary Threshold is £242 and the Upper Earnings Limit is £967. Monthly values are £1,048 and £4,189. Two-weekly and four-weekly payroll uses the corresponding weekly multiples. Check the category letter printed on your payslip.
Student and Postgraduate Loan deductions
Loan deductions use earnings subject to employer Class 1 NI and the exact threshold for the pay period. Payroll normally operates one undergraduate plan. A Postgraduate Loan can run alongside it.
| Loan | Annual threshold | Monthly / weekly threshold | Rate |
|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 / £517.30 | 9% |
| Plan 2 | £29,385 | £2,448.75 / £565.09 | 9% |
| Plan 4 | £33,795 | £2,816.25 / £649.90 | 9% |
| Plan 5 | £25,000 | £2,083.33 / £480.76 | 9% |
| Postgraduate Loan | £21,000 | £1,750.00 / £403.84 | 6% |
For each pay period, payroll subtracts the relevant threshold, applies 9% or 6%, then rounds the deduction down to the whole pound. At £2,500 monthly pay, Plan 2 deducts £4 and a Postgraduate Loan deducts £45, for £49 in total.
The tool does not know a remaining loan balance, start or stop notice, refund entitlement or protected deduction. Confirm the active plan and balance through your account and payslip.
How pension salary sacrifice changes take-home pay
Under salary sacrifice, you agree to reduce contractual cash salary and the employer pays the exchanged amount into the pension. For 2026/27, a valid pension sacrifice normally reduces supported Income Tax, employee NI and NI-based loan earnings.
A net-pay arrangement is different. It generally reduces taxable salary for Income Tax but not NI or loan earnings. Relief at source is normally taken from net pay, and the pension provider adds basic-rate relief. Do not enter either method as salary sacrifice.
Salary sacrifice cannot reduce cash earnings below the applicable National Minimum Wage. It can affect statutory pay and contribution-based benefits. The announced £2,000 NI exemption cap begins in April 2029, so this calculator does not apply it to 2026/27.
Bonuses and pay frequency
Income Tax in this tool is an annual liability estimate. NI and loan repayments are period-based, so bonus timing changes them. A large bonus in one month can cross the monthly Upper Earnings Limit or a loan threshold even when regular pay does not.
For example, £48,000 of salary plus a £12,000 bonus in one monthly pay period produces less employee NI than spreading £60,000 evenly, because more of the bonus falls into the 2% upper NI band. A loan deduction can move the other way because a large single period crosses the threshold sharply.
Monthly and weekly result cards are average equivalents. They are not forecasts for the exact bonus payslip. PAYE on a particular irregular payment needs the tax code, year-to-date pay, tax paid and payroll period number.
Common take-home pay mistakes
| Mistake | Why it fails | Better approach |
|---|---|---|
| Using 2025/26 loan thresholds | Plan 1, 2 and 4 thresholds changed for 2026/27. | Use the exact current pay-period figures shown above. |
| Treating every pension as sacrifice | Net-pay and relief-at-source methods affect tax and NI differently. | Confirm the arrangement on the scheme documents. |
| Using annual NI for a bonus | NI is normally non-cumulative and period-based. | Choose the real frequency and enter the bonus separately. |
| Linking Plan 4 to Scottish tax | Loan plan and tax residence answer different questions. | Choose each setting independently. |
| Expecting exact PAYE | Tax codes and year-to-date records are not modeled. | Compare the estimate with the actual payslip. |
What this calculator does not cover
- Emergency, BR, D0, D1, 0T, K, Marriage Allowance or other custom tax-code operation.
- Benefits in kind, savings, dividends, rent, foreign income or the High Income Child Benefit Charge.
- Multiple jobs, partial-year employment, week 53, directors' annual NI method or self-employment.
- Attachment orders, statutory payments, payroll giving or previous-pay adjustments.
- Pension annual allowance, taper, carry forward, money purchase annual allowance or tax charges.
- Student-loan balances, interest, refunds, start notices, stop notices or deductions from another job.
Use the result for budgeting and comparison. Use HMRC records, your employer's payroll and qualified advice for a decision that depends on exact liability.
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Frequently asked questions
How is UK take-home pay calculated?
Start with gross employment pay, subtract supported salary sacrifice, then deduct Income Tax, employee National Insurance, one undergraduate student loan, an optional Postgraduate Loan and other payroll deductions. The amount left is estimated take-home pay.
Will this calculator match my payslip exactly?
Not always. A payslip uses your tax code, year-to-date PAYE data, exact pay period, payroll rounding, taxable benefits and employer-specific deductions. This calculator provides a planning estimate from the inputs shown.
What is the Personal Allowance for 2026/27?
The standard Personal Allowance is £12,570. It falls by £1 for every complete £2 of adjusted net income above £100,000 and reaches zero at £125,140. A tax code or other income can change the actual amount.
Does Scotland use different Income Tax rates?
Yes. Scottish taxpayers use six rates from 19% to 48% for wages, pensions and most other non-savings, non-dividend income. Employee National Insurance rates remain UK-wide.
What are the employee NI rates for 2026/27?
The standard group pays 8% above the Primary Threshold through the Upper Earnings Limit, then 2%. Reduced-rate, deferment and no-employee-NI category groups use the alternative rates shown in the calculator.
What are the 2026/27 student loan thresholds?
Annual thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. Payroll applies 9% above the exact threshold for each pay period.
Can I repay an undergraduate and postgraduate loan together?
Yes. Payroll can deduct one undergraduate plan at 9% and a Postgraduate Loan at 6% in the same pay period. Each calculation uses its own threshold and rounds down separately to whole pounds.
Does pension salary sacrifice always increase take-home pay?
It usually reduces supported Income Tax and employee NI for 2026/27, but cash salary also falls because money goes into the pension. The result depends on salary, tax band, loan deductions and the employer's arrangement.
Why does a bonus change NI and loan deductions?
NI and loans use the earnings period containing the bonus. Higher pay in one period can cross the NI upper limit and loan thresholds. Annual Income Tax can stay unchanged while period-based deductions move.
Does this calculator support custom tax codes or directors?
No. It estimates annual tax from the standard Personal Allowance rules and does not reproduce emergency, K, BR or other custom codes. Company directors can also use a special annual or pro-rata NI method.
Official 2026/27 sources
- HMRC: rates and thresholds for employers, 2026 to 2027
- HMRC: current and previous Income Tax rates and allowances
- Scottish Government: 2026/27 Income Tax technical factsheet
- HMRC: 2026/27 student and postgraduate loan deduction tables
- HMRC: salary sacrifice and PAYE guidance
- HMRC: adjusted net income and Personal Allowance guidance
- HMRC National Insurance Manual: exact-percentage rounding
Disclaimer: This calculator provides an educational estimate for the 2026/27 UK tax year. It is not tax, pension, legal or payroll advice and does not replace an HMRC calculation, payslip, employer record or qualified review. Check current official guidance before changing pension contributions, loan arrangements or financial commitments.