Salary after tax, explained
How this UK take-home pay calculator works
Your take-home pay is the cash left from gross employment income after PAYE Income Tax, employee Class 1 National Insurance, pension deductions and any student or postgraduate loan repayment selected. The calculator first applies the rules for the 2026/27 tax year, then shows the same annual result as monthly, weekly, daily and hourly figures.
Income Tax is normally cumulative across the tax year. National Insurance and student-loan deductions are calculated for each pay period, so bonus timing matters. That is why a one-off bonus appears in one payday rather than being silently spread across the year.
UK Income Tax rates for 2026/27
For England, Wales and Northern Ireland, the standard Personal Allowance is £12,570. It falls by £1 for every £2 of adjusted net income over £100,000 and reaches zero at £125,140.
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic | £12,571–£50,270 | 20% |
| Higher | £50,271–£125,140 | 40% |
| Additional | Over £125,140 | 45% |
Scottish Income Tax rates
Scottish Income Tax applies to employment income when your main home is in Scotland. The 2026/27 starter and basic thresholds changed from the previous tax year.
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571–£16,537 | 19% |
| Basic | £16,538–£29,526 | 20% |
| Intermediate | £29,527–£43,662 | 21% |
| Higher | £43,663–£75,000 | 42% |
| Advanced | £75,001–£125,140 | 45% |
| Top | Over £125,140 | 48% |
Employee National Insurance in 2026/27
For a standard category A employee, Class 1 National Insurance is normally 8% between the primary threshold and upper earnings limit, then 2% above it. Payroll uses pay-period thresholds: £1,048 and £4,189 for monthly pay, or £242 and £967 for weekly pay.
The calculator rounds NI for each payday before adding the annual total. Select “Do not deduct employee National Insurance” only when this genuinely applies, such as category C after State Pension age.
How your tax code changes the estimate
The number in a code such as 1257L indicates roughly how much tax-free income the employment receives. An S prefix uses Scottish rates and a C prefix indicates Welsh rates. Codes such as BR, D0 and D1 tax all income from this job at one rate; 0T gives no allowance; NT means no tax; and a K code adds untaxed income or deductions to taxable pay.
Emergency codes ending W1, M1, X or NONCUM calculate tax from that pay period rather than cumulative year-to-date figures. This calculator recognises the suffix but labels its result as an annualised estimate.
Student-loan thresholds for 2026/27
Employees repay 9% of pay above the threshold for Plans 1, 2, 4 or 5. A Postgraduate Loan is 6% above its threshold and can be deducted at the same time as an undergraduate plan.
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Repayments use the same gross-pay basis as employer Class 1 NI and are rounded down to the nearest whole pound for the pay period. A bonus can trigger a deduction even when annual income later ends below the yearly threshold; GOV.UK explains when a refund may be available.
Pension contributions and bonus tax
Salary sacrifice
You contractually give up cash salary and the employer pays the amount into the pension. For 2026/27, a valid pension salary sacrifice normally reduces Income Tax, employee NI and the pay used for student-loan deductions. It can affect statutory payments and benefits.
Net pay arrangement
The gross employee contribution is taken before Income Tax, but after National Insurance is worked out. The full contribution is deducted from cash pay.
Relief at source
The contribution comes from after-tax pay. The calculator treats your entry as the gross amount going into the pension: you pay 80% and the provider claims 20% basic-rate relief. Extra relief for higher Scottish or rest-of-UK rates may need to be claimed and is not added to the displayed payroll take-home pay.
One-off bonus
A cash bonus is employment income. Annual Income Tax usually settles according to total taxable pay, while NI and student loans are payday-based. The calculator assumes the selected pension contribution applies to salary and bonus; use a fixed annual pension amount if your bonus is not pensionable.
Official sources and calculation review
Tax year: 2026/27, from 6 April 2026 to 5 April 2027
Rates checked: 29 July 2026
Calculation tests: standard and tapered allowance boundaries, Scottish comparison, NI periods, all loan plans, bonus timing, tax codes and pension methods.
- HMRC: rates and thresholds for employers 2026 to 2027
- HMRC: current and previous Income Tax rates and allowances
- GOV.UK: Scottish Income Tax current rates
- Scottish Government: 2026/27 technical factsheet
- HMRC: 2026/27 student and postgraduate loan tables
- GOV.UK: what your tax code means
- GOV.UK: pension tax relief
- HMRC: salary sacrifice and PAYE
Read the full Money Harbour salary-calculator methodology. If your result matters for a tax return, dispute or payroll decision, compare it with your payslip and HMRC’s own service.
UK salary calculator questions
How is UK take-home pay calculated?
Gross employment pay is reduced by PAYE Income Tax, employee Class 1 National Insurance, pension deductions and any student or postgraduate loan deductions selected.
Does this salary calculator include Scottish Income Tax?
Yes. Select Scotland or enter an S-prefixed tax code. The calculator then uses the six Scottish non-savings, non-dividend bands for 2026/27.
How is a bonus taxed in the UK?
A cash bonus is employment income. It may increase Income Tax, NI and student-loan deductions. This calculator places it in one selected-frequency payday to expose period-based deductions.
Does salary sacrifice reduce tax and National Insurance?
A valid pension salary-sacrifice arrangement normally reduces the salary subject to Income Tax and employee NI in 2026/27. Net pay and relief at source have different effects.
Why might my payslip differ from the calculator?
Payroll rounding, cumulative year-to-date pay, code changes, emergency treatment, benefits, arrears, statutory pay, multiple jobs and pension-scheme rules can all cause differences.
Can I use this if I am self-employed?
No. It is designed for one employment paid through PAYE. Self-employed profits, Class 4 NI and payments on account require a Self Assessment calculation.