How it works
This calculator shows your take home pay for the 2026-27 tax year using the rules published by HMRC, GOV.UK and the Scottish Government. It assumes you are an employee paid through PAYE on a normal tax code (1257L), with one job and no other income.
How UK income tax works in 2026-27
- Personal Allowance: the first £12,570 of income is tax-free. It is reduced by £1 for every £2 of income over £100,000 and disappears completely at £125,140.
- England, Wales and Northern Ireland: 20% on taxable income up to £37,700, 40% from £37,700 to £125,140, and 45% above that.
- Scotland: 19% starter rate on the first £3,967 of taxable income, 20% up to £16,956, 21% up to £31,092, 42% up to £62,430, 45% up to £125,140 and 48% above that. Scottish rates apply if you live in Scotland.
- National Insurance (Class 1, category A): 8% of earnings between £12,570 and £50,270 a year, then 2% above £50,270. Nothing is due under £12,570.
- Student loans: 9% of earnings above £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4) or £25,000 (Plan 5), and 6% above £21,000 for a postgraduate loan.
Worked example: £40,000 salary in England
Taxable income = £40,000 − £12,570 = £27,430
- Income tax: 20% × £27,430 = £5,486
- National Insurance: 8% × (£40,000 − £12,570) = £2,194.40
- Take home pay: £40,000 − £5,486 − £2,194.40 = £32,319.60 a year, about £2,693.30 a month
The same £60,000 salary gives £45,357.40 net in England but £43,607.35 in Scotland, because the Scottish 42% rate starts at a lower level. At £110,000 the lost Personal Allowance means income tax of £33,432 and a marginal rate of 62%.
What this calculator leaves out
Marriage Allowance, Blind Person's Allowance, tax codes other than the standard one, benefits in kind, salary sacrifice, Gift Aid, savings and dividend income, and the Scottish tax rules for people who move during the year are not included. Employee pension contributions are modelled as a net pay arrangement (taken before tax), taken as a flat percentage of your whole salary rather than only your qualifying earnings. Only one student loan plan can be selected. Real payslips are calculated pay period by pay period, so a payslip can differ by a few pounds from this annual figure.