UK Take-Home Pay Calculator 2026-27
Last reviewed: July 30, 2026Estimate your UK take-home pay for 2026-27. Covers income tax (England, Wales, and Northern Ireland), National Insurance Class 1, student loan repayments, and pension contributions across all three scheme types. Based on confirmed HMRC rates.
Scotland: this calculator uses income tax rates for England, Wales, and Northern Ireland. Scotland has different income tax bands and rates set by the Scottish Parliament — results will not be accurate for Scottish taxpayers.
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How UK take-home pay is calculated
Based on HMRC rules for the 2026-27 tax year (6 April 2026 – 5 April 2027). England, Wales, and Northern Ireland only.
UK employees pay income tax and National Insurance on their earnings each pay period through PAYE (Pay As You Earn). Both taxes are progressive — the rate you pay on additional income rises as you earn more — but they follow different rules and thresholds.
Personal Allowance
Every taxpayer in the UK can earn up to the Personal Allowance (£12,570) tax-free. This threshold is frozen until 5 April 2028, confirmed by HMRC policy in March 2025. You only pay income tax on earnings above this amount.
However, if your adjusted net income exceeds £100,000, the Personal Allowance is reduced by £1 for every £2 above that threshold. It reaches zero at £125,140 (£100,000 + 2 × £12,570 = £125,140). This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140 — the standard 40% higher rate plus 20% effectively charged by the withdrawal of the allowance. Pension contributions can reduce adjusted net income back below £100,000 and restore the full allowance.
Income tax bands
Income tax is charged on taxable income — your earnings above the Personal Allowance. For 2026-27 (England, Wales, and Northern Ireland):
The basic rate limit (£37,700) and Personal Allowance (£12,570) are both frozen to 5 April 2028. Scotland sets its own rates and bands — this table applies to England, Wales, and Northern Ireland only.
National Insurance (Class 1 employee)
National Insurance contributions are calculated separately from income tax on a different schedule. For 2026-27:
- Below the Primary Threshold (£12,570/year): no NI contributions
- Between PT and the Upper Earnings Limit (£50,270/year): 8%
- Above UEL: 2% on all additional earnings
The Primary Threshold is aligned with the Personal Allowance at £12,570 — both are frozen. Because NI uses different thresholds and rates from income tax, your effective burden from each varies significantly across the income range.
Example: £60,000 salary → NI = (£50,270 − £12,570) × 8% + (£60,000 − £50,270) × 2% = £3,016 + £194.60 = £3,210.60
Student loan repayments
Student loan repayments are deducted through PAYE and depend on your plan and earnings. Repayments start once your income crosses the plan's annual threshold:
An important and often overlooked detail: student loan repayments are calculated on the same earnings base as National Insurance, not on taxable income. This is specified in Regulation 41 of the Student Loan Repayment Regulations 2009, which links to the National Insurance earnings definition under s.3 of the Social Security Contributions and Benefits Act 1992.
In practice this means: if you contribute to a pension via salary sacrifice, your student loan repayments are reduced (because salary sacrifice lowers the NI earnings base). But if your pension is a net pay arrangement or relief at source, your student loan repayments are based on your full gross salary — even though your income tax bill is lower. This is counterintuitive but correct.
Pension contributions — three schemes
How much tax you save on pension contributions depends on the scheme your employer uses.
Salary sacrifice — your employer reduces your gross salary by the pension amount before payroll is processed. Both income tax and National Insurance are calculated on the reduced figure. This is the most tax-efficient arrangement because you save on NI as well as income tax. Your employer may also save on their employer NI contributions and sometimes passes some of that saving on.
Net pay arrangement — your pension contribution is deducted from your gross pay before income tax is calculated, so you receive full income tax relief automatically. However, National Insurance is charged on your full gross salary (per HMRC's CWG2 2026-27 guidance: "for NI purposes do NOT deduct pension contributions from gross pay"). You save on income tax but not on NI, making this slightly less efficient than salary sacrifice.
Relief at source — no pre-tax deduction is made. Both income tax and National Insurance are calculated on your full gross salary. You contribute 80% of the gross pension amount from your take-home pay, and your pension provider claims the remaining 20% basic-rate tax relief from HMRC and adds it to your pension pot (per HMRC PTM044100). If you are a higher-rate or additional-rate taxpayer, you can claim the extra relief above basic rate through self-assessment. This scheme results in the lowest take-home of the three for the same contribution amount.
Example at £60,000 with 5% pension: salary sacrifice → £43,617 net; net pay arrangement → £43,557 net; relief at source → £42,957 net.
Authoritative sources: HMRC income tax rates, NI thresholds 2026-27, and student loan repayments at gov.uk.
Frequently asked questions
What is the Personal Allowance for 2026-27?
The Personal Allowance for 2026-27 is £12,570 — the amount you can earn each year without paying income tax. This threshold is frozen until 5 April 2028 under government policy confirmed in March 2025. Once your income exceeds £12,570, you pay income tax at the basic rate (20%) on earnings in the basic rate band. The Personal Allowance applies across England, Wales, Northern Ireland, and Scotland — though Scotland sets its own income tax rates above that threshold.
Why does my Personal Allowance reduce above £100,000?
The government applies a taper to the Personal Allowance once your adjusted net income exceeds £100,000. For every £2 earned above £100,000, the allowance reduces by £1. The Personal Allowance reaches zero at £125,140 (£100,000 plus 2 × £12,570). Income in the £100,000–£125,140 band is effectively taxed at 60% — the standard 40% higher rate, plus an extra 20% effectively charged by the withdrawal of the allowance. Making pension contributions can reduce adjusted net income back below £100,000 and restore the full allowance.
What's the difference between salary sacrifice and net pay pension schemes?
Under salary sacrifice, your employer reduces your gross salary by the pension contribution before processing pay — both income tax and National Insurance are calculated on the lower figure, so you save on both. Under a net pay arrangement, the pension contribution is deducted before income tax is calculated (giving full income tax relief automatically), but National Insurance is charged on your full gross salary, so you save slightly less overall. Under relief at source, no pre-tax deduction is made — income tax and NI are both on your full gross salary. You pay 80% of the gross contribution from your take-home pay, and your pension provider claims the remaining 20% basic-rate relief from HMRC. Higher- and additional-rate taxpayers need to claim further relief through self-assessment.
Which student loan plan am I on?
Your plan depends on when and where you studied. Plan 1 applies to students who started before September 2012 in England or Wales, or any time in Northern Ireland. Plan 2 applies to English and Welsh students who started between September 2012 and July 2023. Plan 5 applies to English students starting from August 2023 onwards. Plan 4 covers Scottish students. The Postgraduate Loan (sometimes called Plan 3) applies if you took out a Postgraduate Master's or Doctoral loan. You can check your plan and balance at studentloans.co.uk or on your payslip.
Does this calculator work for Scotland?
No. This calculator uses income tax rates for England, Wales, and Northern Ireland only. Scotland has its own income tax system set by the Scottish Parliament, with different bands and rates — starter (19%), basic (20%), intermediate (21%), higher (42%), and top (48%) rates for 2026-27. The income tax figures shown by this calculator will not be accurate for Scottish taxpayers. See mygov.scot for Scottish-specific guidance.