Calculator
Take-Home Pay Calculator (UK, 2026/27)
What you actually keep out of a UK salary, after income tax, National Insurance, student loans, and pension. Updated for the 2026/27 tax year.
Reviewed 27 April 2026 · 2026/27 rates verifiedYour annual take-home
£37,020
£3,085 per month · effective 21.0% · marginal 28.0%
Show full breakdown
Where your money goes
| Gross salary | £50,000.00 |
|---|---|
| Income taxOn £37,430.00 taxable (rUK bands) | −£7,486.00 |
| National InsuranceClass 1 employee | −£2,994.40 |
| Pension contribution5% of gross, from net pay | −£2,500.00 |
| Net annual take-home | £37,019.60 |
Pension pot also gains £2,500.00 per year (not in net cash above).
How this calculator works
The deduction chain on a UK salary is: gross pay → personal allowance → income tax bands → National Insurance → student loan(s) → pension. Everything below explains what each step does and where the figure comes from.
Personal allowance and the £100k taper
Everyone earning under £100,000 gets a £12,570 personal allowance, the slice of income taxed at 0%. Above £100,000, the allowance is reduced by £1 for every £2 of income, hitting zero at £125,140. Inside that band the effective marginal rate spikes to 60% (62% once you add NI), the famous “60% trap”.
Income tax, England, Wales, NI
On taxable income (gross minus the personal allowance): the first £37,700 is taxed at 20% (basic rate), the next slice up to £125,140 at 40% (higher rate), and anything above £125,140 at 45% (additional rate). These thresholds are frozen until 5 April 2031.
Income tax, Scotland
Scotland operates a six-band schedule (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%) set by the Scottish Government. Lower earners pay slightly less than rUK; higher earners pay noticeably more. The 2026/27 starter and basic bands widened compared with 2025/26.
National Insurance (Class 1 employee)
On earnings between £12,570 and £50,270 you pay 8%; above £50,270 the rate drops to 2%. NI is calculated on actual earnings, it doesn't use the personal allowance. Above State Pension age, employees stop paying Class 1 NI entirely.
Student loans
You repay 9% of income above the threshold for whichever undergraduate plan you hold (Plan 1: £26,900, Plan 2: £29,385, Plan 4: £33,795, Plan 5: £25,000), plus 6% above £21,000 for a Postgraduate Loan. If you hold multiple undergraduate plans, HMRC takes a single 9% deduction at the lowest threshold — you don't pay 9% twice.
Pension and salary sacrifice
With salary sacrifice, your gross salary is reduced before tax and NI, and the sacrificed amount goes straight to your pension. You save tax + NI on every pound contributed. Without salary sacrifice, the pension comes out of your post-tax pay — no NI saving and no automatic income-tax saving (you'd need to claim higher-rate relief separately if you're in a higher band).
Edge cases, what this calculator doesn't cover
- Benefits in kind (company car, private medical, etc. on a P11D), your real payslip will differ if you have any.
- Marriage allowance transfer: not auto-applied; calculate separately if you or your partner transfer £1,260 of unused allowance.
- Blind person's allowance: not currently modelled.
- High-income child benefit charge: claws back child benefit between £60,000 and £80,000 of adjusted net income; not included here.
- Pension annual allowance taper: affects very high earners (£260k+ adjusted income); use a dedicated pension calculator for that case.
- Mid-year residence changes: calculations assume a full year in one residence.
- Multiple concurrent jobs: assumes a single employment income.
Frequently asked questions
- Why is my actual payslip different from this number?
- PAYE is calculated cumulatively across the year using your tax code. This calculator gives a clean annual picture assuming a standard 1257L tax code, no benefits in kind, and no mid-year changes. Common reasons your real payslip differs: a different tax code, taxable benefits like a company car, mid-year salary changes, bonuses, salary sacrifice arrangements your employer hasn't told you about, or marriage allowance transfers.
- How do multiple student loans stack?
- If you hold multiple undergraduate plans (any combination of Plan 1, 2, 4, 5), HMRC takes a single 9% deduction at the lowest threshold among the plans you hold, they don't take 9% per plan. The Student Loans Company allocates the payment between your loans internally. Postgraduate is always separate at 6% above £21,000, on top of any undergraduate deduction. So someone with Plan 2 + Postgrad pays 9% above £29,385 plus 6% above £21,000.
- What's salary sacrifice, and is it worth it?
- Salary sacrifice means agreeing with your employer to take a lower salary in exchange for a benefit, most commonly an employer pension contribution. Because the sacrifice happens before tax and NI are calculated, you save 20% (or 40%, or 45%) tax plus 8% (or 2%) NI on every pound you sacrifice. For a basic-rate taxpayer, every £100 sacrificed costs you about £72 of net pay, a £28 saving. For higher-rate, it's roughly £58, a £42 saving. Always worth it for the tax saving; the question is whether you'd rather have the pension growth or the cash now.
- What if I'm in Scotland?
- Switch the residence toggle to Scotland. Scottish income tax has six bands (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%) instead of the three-band rUK schedule. NI rates and student loan rules are unchanged, those are set by Westminster, not Holyrood. Higher earners pay noticeably more under Scottish rules; lower earners pay slightly less because of the 19% starter rate.
- What about the personal allowance taper?
- Above £100,000 of total income, your personal allowance is reduced by £1 for every £2 over the threshold. By £125,140 it's gone entirely. The calculator applies this automatically. Inside this band the effective marginal rate hits 60% (40% income tax + 40% on the £0.50 of allowance you lose per extra pound), or 62% once you add NI, the famous "60% trap".
- Does this include employer National Insurance?
- No. Employer Class 1 NI (15% above £5,000 in 2026-27) is paid by the employer on top of your salary, it doesn't reduce your take-home. It's relevant if you're running a limited company and paying yourself a salary as a director, because the company pays employer NI out of its own pocket. Use our outside-IR35 limited company calculator for that case.
- What's the difference between effective and marginal rate?
- Effective rate is the total tax + NI + student loan you pay as a percentage of your gross salary, the average. Marginal rate is what HMRC takes from your next £1 of gross salary, the slope. Marginal rate is what matters when you're deciding whether to take on extra work or accept a pay rise. Effective rate is what matters for budgeting.
- Can I save or share my calculation?
- Not yet. That's a Phase 3.5 feature. The plan is to encode your inputs into the URL so you can copy the address bar and share it. For now, screenshot or note down the inputs separately. If you spot a wrong number, please email hello@contractormaths.co.uk with the inputs and we'll investigate.
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Reviewed: 27 April 2026 · See how we calculate · not financial advice.