UK HMRC PAYE & NATIONAL INSURANCE ESTIMATOR 2026/27

UK Take Home Pay Calculator [2026/27]

Calculate your exact net salary after HMRC Income Tax, Class 1 National Insurance, and student loan deductions for the 2026/27 tax year.

Reviewed by: SBS ToolBench UK Payroll & HMRC Specialist Team
Verified against: HMRC 2026/27 PAYE Bands, NI 8% Main Rate & Scottish Rates
Bottom Line Up Front (BLUF)

Under HMRC 2026/27 rules, standard employees receive a tax-free Personal Allowance of £12,570 (tax code 1257L). Earnings between £12,571 and £50,270 are taxed at 20% basic rate; £50,271 to £125,140 at 40% higher rate; and over £125,140 at 45% additional rate. Class 1 Employee National Insurance is charged at 8% between £1,048 and £4,189 monthly, and 2% above £4,189.

Salary Details
Gross Salary (£ GBP)
Pay Period
Where You Live
Student Loan Plan

Tax Code
Monthly Take Home Pay
£2,354.00
Annual Net: £28,248.00
Gross Income:£35,000.00
Personal Allowance:£12,570.00
Income Tax:£4,486.00
National Insurance:£2,266.00
Student Loan:£0.00
Total Deductions:£6,752.00

How Our UK Take Home Pay Calculator Works

Using our online UK Take Home Pay Calculator allows you to accurately determine your net salary after essential HMRC deductions. Your gross salary is subject to Income Tax and Class 1 National Insurance (NI) contributions.

Whether you receive an annual salary or an hourly wage, our UK Take Home Pay Calculator automatically factors in your Personal Allowance (£12,570 for tax code 1257L) to deliver exact breakdown figures for daily, weekly, monthly, and yearly pay.

UK Income Tax Rates & Allowance Breakdown

In the UK, Income Tax is collected by HMRC through the Pay As You Earn (PAYE) system. For official government details on personal allowance rates, visit the official HMRC Income Tax Rates & Bands Guide.

Tax Band Taxable Income Range Tax Rate
Personal Allowance Up to £12,570 0% (Tax Free)
Basic Rate £12,571 to £50,270 20%
Higher Rate £50,271 to £125,140 40%
Additional Rate Over £125,140 45%

If you also operate a VAT-registered business or work in the UK construction industry, you can use our Reverse VAT Calculator UK to handle HMRC Domestic Reverse Charge calculations. You can explore all our utilities on the SBS ToolBench homepage.

Scottish Income Tax vs England, Wales and Northern Ireland in 2026/27

Scotland has six income tax bands in 2026/27; England, Wales and Northern Ireland have three. Below roughly £33,500 a Scottish taxpayer keeps marginally more of their salary. Above that point they keep less, and the gap widens quickly once higher-rate tax starts at £43,663 in Scotland instead of £50,271. Switch the Where You Live dropdown in the calculator above to compare the two systems on your own salary.

England, Wales and Northern Ireland rates (2026/27)

Band Annual income Rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £125,140 40%
Additional rate Over £125,140 45%

Scottish rates (2026/27)

Band Annual income Rate
Personal Allowance Up to £12,570 0%
Starter rate £12,571 to £16,537 19%
Basic rate £16,538 to £29,526 20%
Intermediate rate £29,527 to £43,662 21%
Higher rate £43,663 to £75,000 42%
Advanced rate £75,001 to £125,140 45%
Top rate Over £125,140 48%

Scottish rates apply only to earnings, pensions and rental profit. Savings interest and dividends are still taxed at UK-wide rates, and National Insurance is identical everywhere in the UK. The thresholds above are the ones published by the Scottish Government in its Scottish Income Tax 2026 to 2027 technical factsheet.

National Insurance Thresholds for 2026/27

Employee (Class 1) National Insurance is 8% of everything you earn between £12,570 and £50,270 a year, then 2% on earnings above £50,270. There is no tax-free-allowance taper on NI and no regional variation, so a Glasgow and a Cardiff salary of the same size pay exactly the same NI.

Item 2026/27 figure
Primary threshold (NI starts) £12,570
Upper earnings limit £50,270
Main rate between the two 8%
Rate above the upper limit 2%

One thing to watch: NI is worked out separately for each pay period rather than annualised. If your pay is uneven, for example a large bonus in March, you can pay more NI across the year than this calculator shows, because the bonus month pushes you over the monthly upper limit while quieter months waste allowance. Income tax corrects itself over the year; NI does not. HMRC publishes the current figures under National Insurance rates and categories.

Student Loan Repayments and Your Take Home Pay

A student loan takes 9% of everything you earn above your plan threshold (6% for a Postgraduate Loan), and it is collected through PAYE alongside tax and NI. It is not interest-sensitive month to month, so for take-home purposes it behaves like a third deduction. Select your plan in the calculator to see it in the breakdown.

Plan Who it applies to 2026/27 threshold Rate
Plan 1 Started before September 2012 (England/Wales), or Northern Ireland £26,900 9%
Plan 2 England or Wales, course started between 2012 and July 2023 £29,385 9%
Plan 4 Scottish students (SAAS) £33,795 9%
Plan 5 England, course started on or after 1 August 2023 £25,000 9%
Postgraduate Loan Masters or doctoral loans £21,000 6%

Worked example: on £40,000 with a Plan 2 loan you repay 9% of £10,615, which is £955 a year or about £79.58 a month. Add a Postgraduate Loan on the same salary and a further 6% of £19,000 comes out, taking the combined deduction to £2,095 a year. That is why the calculator has a separate Postgraduate Loan checkbox: the two run at the same time rather than replacing each other. Thresholds are confirmed in the GOV.UK student loans terms and conditions for 2026 to 2027.

Take Home Pay on Common UK Salaries (2026/27)

The table below assumes a 1257L tax code, no pension contribution and no student loan. The Scotland column shows how the same gross salary lands differently north of the border.

Gross salary Income tax (rUK) NI Monthly net (rUK) Monthly net (Scotland)
£25,000 £2,486 £994 £1,793.30 £1,796.61
£30,000 £3,486 £1,394 £2,093.30 £2,096.21
£40,000 £5,486 £2,194 £2,693.30 £2,687.88
£50,000 £7,486 £2,994 £3,293.30 £3,168.63
£60,000 £11,432 £3,211 £3,779.78 £3,633.95
£80,000 £19,432 £3,611 £4,746.45 £4,554.78
£100,000 £27,432 £4,011 £5,713.12 £5,438.11

The pattern is worth reading twice. At £25,000 and £30,000 Scotland is a few pounds a month better off because of the 19% starter band. By £50,000 a Scottish taxpayer is roughly £125 a month worse off, and by £100,000 the gap is about £275 a month. If you are negotiating a relocation or a remote contract across the border, that difference belongs in the conversation.

How Your Tax Code Changes Your Take Home Pay

The number in your tax code is your tax-free allowance divided by ten. 1257L means £12,570 of tax-free pay; 1000L means £10,000, usually because you owe tax from an earlier year or receive a taxable benefit such as a company car. Change the tax code field in the calculator and the Personal Allowance line moves with it.

  • 1257L is the standard code for one job with the full allowance.
  • BR taxes everything at 20% with no allowance, common on a second job.
  • D0 and D1 tax everything at 40% and 45% respectively.
  • K codes mean your taxable benefits exceed your allowance, so income is added rather than deducted.
  • W1, M1 or X suffixes are emergency codes. Each pay period is taxed in isolation, which is why a first payslip in a new job often looks wrong.

Why Your Payslip May Not Match This Calculator

This tool models the annual PAYE position on salary alone. Most gaps between it and a real payslip come from one of five things.

  • Pension contributions. A 5% net-pay or salary-sacrifice contribution reduces taxable pay before tax is worked out, so your real tax bill is lower than shown.
  • Salary sacrifice for other benefits such as a cycle scheme or an electric car cuts both taxable pay and NI.
  • Benefits in kind like private medical cover are usually collected through a reduced tax code rather than a payslip line.
  • Emergency or month-1 codes in a new job, which HMRC corrects later.
  • Other income such as rent, dividends or a second job, which uses up allowance the calculator assumes is free.

If you also invoice as a sole trader or contractor, our reverse VAT calculator strips VAT back out of a gross invoice total, and the UK degree classification calculator handles the other common UK number people ask us about.

Frequently Asked Questions About UK Take Home Pay

What is the standard personal allowance in the UK?

For the 2026/27 tax year, the standard UK Personal Allowance is £12,570. This is the amount of income you can earn each year before you begin paying Income Tax. If you earn over £100,000, your personal allowance is reduced by £1 for every £2 of income above £100,000, reaching zero at £125,140.

How is National Insurance (NI) calculated on my salary?

Class 1 Employee National Insurance is charged on earnings above the Primary Threshold (£242 per week or £1,048 per month). Earnings between £1,048 and £4,189 per month (£12,570 to £50,270 annually) are taxed at 8%. Earnings above £4,189 per month are taxed at 2%.

Why is take home pay lower for Scottish taxpayers?

Scotland sets its own devolved income tax rates with 6 distinct bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top rate (48%). Anyone earning above £28,850 in Scotland pays slightly more income tax than workers in England, Wales, or Northern Ireland.

How do student loan repayments affect take home pay?

Student loan repayments are calculated as a percentage of your income above specific annual repayment thresholds (e.g. £24,990 for Plan 1, £27,295 for Plan 2, £31,395 for Plan 4, and £25,000 for Plan 5). You repay 9% of income above the threshold (6% for Postgraduate Loans), deducted automatically through PAYE.

What does tax code 1257L mean on my payslip?

1257L is the standard tax code for most UK employees with one job. The numbers '1257' represent your £12,570 tax-free Personal Allowance. The letter 'L' means you are entitled to the standard basic personal allowance.

📖 Statutory Payroll Guide Updated for 2026/2027

UK Take Home Pay Calculator: 2026/2027 Salary, Tax & NI Guide

Complete HMRC salary breakdown: Personal allowances, National Insurance, auto-enrolment pensions, and student loan repayment plans.

Read Full Technical Guide & Documentation →

© 2026 SBS ToolBench. Crafted with precision by SBS Digitals.

Is the take home pay calculator accurate for Scotland?

Yes. Select Scotland in the Where You Live dropdown and the calculator applies all six Scottish bands for 2026/27, from the 19% starter rate through to the 48% top rate, and keeps National Insurance at UK-wide rates because NI is not devolved. We verified the output against HMRC band mechanics at £30,000, £50,000, £120,000 and £200,000, including the personal allowance taper above £100,000.

What salary do I need before Scottish tax costs me more?

Roughly £33,500. Below that the Scottish 19% starter band leaves you a few pounds a month better off than England, Wales and Northern Ireland. Above about £33,500 the 21% intermediate band overtakes the 20% basic rate, and from £43,663 the 42% higher rate applies seven thousand pounds earlier than the rest of the UK, which is where the difference becomes noticeable.

Does the calculator include pension contributions?

No, and that is deliberate. Pension schemes differ too much to guess: relief at source, net pay arrangement and salary sacrifice all change the numbers in different ways. To model a salary sacrifice pension, subtract your contribution from your gross salary before entering it. For a net pay arrangement, do the same, since both reduce taxable pay.

How does the personal allowance taper above £100,000 work?

For every £2 you earn over £100,000, you lose £1 of personal allowance. At £110,000 your allowance falls to £7,570; by £125,140 it is gone entirely. That creates an effective marginal rate of 60% in England, Wales and Northern Ireland and 67.5% in Scotland across that band. The calculator applies the taper automatically.

Why is my first payslip in a new job lower than expected?

Almost always an emergency tax code. Until HMRC receives your P45 or starter checklist, your employer may use a W1 or M1 code that taxes each pay period in isolation with no carried-forward allowance. Once the correct code arrives, the overpayment is refunded through payroll, usually within one or two months, without you needing to claim it.

Do student loan repayments stop automatically when the loan is cleared?

Not instantly. Repayments are collected through PAYE and the Student Loans Company reconciles balances after the tax year, so it is common to overpay by a month or two at the end. You can switch to direct debit in the final two years of repayment to avoid this, and any overpayment is refundable.

Can I use this to work out take home pay on an hourly or weekly rate?

Yes. Set the Pay Period dropdown to Per Week or Per Day and enter that figure. The calculator annualises using 52 weeks or 260 working days, then applies annual bands before dividing back down. For a genuine hourly rate, multiply by your contracted hours first, since the tool works from pay per period rather than hours.

Is take home pay the same as net pay?

Yes, the terms are interchangeable. Gross pay is your salary before deductions. Take home pay, or net pay, is what actually reaches your bank account after income tax, National Insurance, student loan and any pension or salary sacrifice deductions. The difference between the two on an average UK salary is roughly a quarter of gross pay.

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