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Wondering how much of your salary you will actually keep in the 2026/27 tax year? Our free UK take-home pay calculator works out your income tax, National Insurance, student loan repayments and pension contributions in seconds, showing your true take-home pay per year, month, week and day. Wondering how your pay compares nationally? Read our guide to the average salary in the UK in 2026.
How the UK take-home pay calculator works
Enter your gross annual salary, your tax code (1257L is the standard code for most employees), the percentage of salary you pay into a pension, and your student loan plan. The calculator then follows the same steps HMRC uses:
- Step 1: it reads your tax code to find your personal allowance (for 1257L that is £12,570).
- Step 2: it subtracts your pension contribution from your salary, because salary-sacrifice pension payments reduce the income that tax is charged on.
- Step 3: it applies the 2026/27 income tax bands to whatever is left above your personal allowance.
- Step 4: it works out employee National Insurance at 8% and 2% on the relevant slices of pay.
- Step 5: it deducts student loan repayments only on earnings above your plan threshold.
2026/27 UK income tax bands and rates
The figures below are the confirmed 2026/27 rates for England, Wales and Northern Ireland, published by HM Revenue & Customs. The personal allowance is frozen at £12,570.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal allowance | £0 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% |
How income tax is calculated on your salary
UK income tax is marginal, which means you only pay each rate on the slice of income inside that band — never on your whole salary. The formula the calculator uses is:
Income tax = 20% × (income from £12,571 to £50,270) + 40% × (income from £50,271 to £125,140) + 45% × (income above £125,140).
For example, on a taxable income of £40,000 you pay nothing on the first £12,570, then 20% on the remaining £27,430 — a tax bill of £5,486. Your effective tax rate is about 13.7%, far below the 20% basic rate, because the personal allowance and the way bands stack softens the average.
National Insurance contributions in 2026/27
Employees pay Class 1 National Insurance on earnings between the primary threshold of £12,570 a year and the upper earnings limit of £50,270 a year at 8%, and 2% on everything above £50,270. Unlike income tax, there is no personal-allowance-style zero band from your tax code — the thresholds are fixed by law, so the calculator applies them directly to your salary after pension.
Student loan repayments
Student loan repayments are not a tax, but they come out of your pay packet before it reaches your bank account, so the calculator includes them. You repay 9% of earnings above your plan threshold (6% for postgraduate loans), and only on the amount above the threshold:
| Plan | 2026/27 threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Postgraduate loan | £21,000 | 6% |
Pension contributions
The calculator treats your pension contribution as a salary-sacrifice arrangement: the percentage you enter is deducted from your gross salary before income tax and National Insurance are calculated. That is why increasing your pension percentage visibly lowers your tax bill in the results — you are not just saving for retirement, you are also paying less tax today. If your employer uses relief at source instead, your take-home figure will be very slightly lower than shown.
Worked example: £40,000 salary in 2026/27
Say you earn £40,000, your tax code is 1257L, you pay 5% into your pension and have no student loan:
- Pension: 5% of £40,000 = £2,000
- Taxable income: £40,000 − £2,000 − £12,570 = £25,430
- Income tax: 20% of £25,430 = £5,086.00
- National Insurance: 8% of (£38,000 − £12,570) = £2,034.40
- Take-home pay: £40,000 − £2,000 − £5,086.00 − £2,034.40 = £30,879.60 a year
- Monthly: £2,573.30 · Weekly: £593.84
UK take-home pay FAQs
What is the UK personal allowance for 2026/27?
The personal allowance for 2026/27 is £12,570. It is the amount you can earn before paying income tax, and it is frozen at this level. It starts to taper away once your income passes £100,000, falling by £1 for every £2 over the limit.
What does the tax code 1257L mean?
1257L is the standard tax code for most employees with one job and no untaxed income. The number 1257, multiplied by 10, gives your personal allowance of £12,570. The letter L means you are entitled to the standard personal allowance.
How much National Insurance will I pay in 2026/27?
Employees pay 8% National Insurance on earnings between £12,570 and £50,270 a year, and 2% on earnings above £50,270. For example, on a £40,000 salary you would pay £2,200 a year if you made no pension contributions.
Do I pay student loan on my whole salary?
No. You only repay a percentage of what you earn above your plan threshold – 9% for Plan 1, 2 and 4, and 6% for postgraduate loans. Earnings below the threshold are untouched, so someone on Plan 2 earning £30,000 repays 9% of just £615, about £55 a year.
Does this calculator work for Scotland?
The calculator uses the England, Wales and Northern Ireland income tax bands. Scotland sets its own starter, basic, intermediate, advanced and top rates, so Scottish taxpayers should treat the income tax figure as an approximation.
Are pension contributions taken before tax?
Yes, in this calculator your pension percentage is treated as a salary-sacrifice contribution, which reduces the income that income tax and National Insurance are charged on. This matches how most large UK employers run their schemes.
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