How do I work out my take-home pay in the UK?
- 1Enter your yearly salary and choose where you live.
- 2Add a pension contribution if you pay one, and how it is paid.
- 3Pick your student loan plan and postgraduate loan, if any.
- 4Read your take-home pay per year, month and week, with the tax, NI and band-by-band breakdown.
UK income tax and NI rates for 2026-27
- 01Personal allowance £12,570, reduced by £1 for every £2 over £100,000 (nil from £125,140)
- 02England, Wales, NI: 20% on the first £37,700 of taxable income · 40% up to £125,140 · 45% above
- 03Scotland: 19% on £3,967 · 20% to £16,956 · 21% to £31,092 · 42% to £62,430 · 45% to £125,140 · 48% above (taxable income)
- 04Employee NI: 8% on pay between £12,570 and £50,270, 2% above
- 05Student loans: 9% above £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5); postgraduate 6% above £21,000
- 06Take-home = salary − pension sacrifice − income tax − NI − student loans − relief-at-source contribution (80%)
Income tax is charged band by band on your taxable income — your pay minus the personal allowance. Only the part of your income inside each band pays that band's rate, so moving into the higher-rate band never makes your whole salary taxed at 40%.
Above £100,000 the personal allowance shrinks by £1 for every £2, which creates an effective 60% rate up to £125,140. Paying more into a pension lowers your adjusted net income and can bring the allowance back.
National Insurance is separate from income tax: 8% on earnings between £12,570 and £50,270 and 2% above that. Student loans take 9% (6% for postgraduate loans) of what you earn above your plan's threshold. All the 2026-27 figures come from HMRC's rates and thresholds for employers.
UK take-home pay example for 2026-27
On a salary of 35,000 in England, income tax is 4,486 and National Insurance 1,794.4 for 2026-27.
That leaves a take-home pay of 28,719.6 a year, or 2,393.3 a month.
Good to know
- Earning just over £100,000? Extra pension contributions can save 60% tax and win back your personal allowance.
- Check your tax code on your payslip — 1257L is the usual one; a different code changes your tax.
- Salary sacrifice saves National Insurance as well as income tax, if your employer offers it.
- Scottish taxpayers pay a little less than the rest of the UK below about £30,000 and more above it.
UK income tax — common questions
How much tax do I pay on £30,000 in the UK?
In 2026-27 in England, Wales or Northern Ireland: income tax 20% of (£30,000 − £12,570) = £3,486, and National Insurance 8% of £17,430 = £1,394.40. Take-home pay is £25,119.60 a year, about £2,093 a month.
What are the income tax bands for 2026-27?
Personal allowance £12,570; basic rate 20% to £50,270; higher rate 40% to £125,140; additional rate 45% above. The thresholds are frozen until April 2031. Scotland has six bands, from 19% to 48%.
What is the 60% tax trap?
Between £100,000 and £125,140 you lose £1 of personal allowance for every £2 earned, so each extra £100 costs £40 tax plus £20 from the lost allowance — 60%. Pension contributions or salary sacrifice can avoid it.
How much National Insurance do employees pay in 2026-27?
8% on earnings between £12,570 and £50,270 a year (£1,048 to £4,189 a month), and 2% on everything above £50,270.
When do I start repaying my student loan?
When your income is above your plan's threshold: £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 for a postgraduate loan. You repay 9% (6% postgraduate) of the income above it.
Sources
- GOV.UK – Rates and thresholds for employers 2026 to 2027
- GOV.UK – Income Tax rates and Personal Allowances
- mygov.scot – Scottish Income Tax 2026 to 2027
- GOV.UK – Repaying your student loan: what you pay
- GOV.UK – Tax on your private pension contributions
Formulas last reviewed: September 30, 2026 ·How we check our formulas