UK take-home pay

Income tax in England, Wales and Northern Ireland: the first £12,570 is tax-free (the Personal Allowance), then 20% on the next £37,700, 40% up to £125,140 of taxable income and 45% above that. In Wales the Welsh rates are currently the same as those in England.

Income tax in Scotland: after the same £12,570 allowance, 19% 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. In terms of total pay, the higher rate starts at £43,663 and the advanced rate at £75,001.

The Personal Allowance falls by £1 for every £2 of adjusted net income over £100,000 and is nil from £125,140. The calculator applies this to tax code 1257L. With any other code it uses the allowance in the code as it stands, because HMRC already adjusts the code of someone it knows earns over £100,000.

National Insurance (Class 1, category A, which covers most employees): 8% of earnings between £12,570 and £50,270 a year, and 2% above £50,270.

Student loans: 9% of earnings above £26,900 a year for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. A postgraduate loan takes a further 6% of earnings above £21,000. The amounts are worked out on pay before any pension contribution.

Sources: HMRC, Rates and thresholds for employers 2026 to 2027 (thresholds, bands, National Insurance and student loans), GOV.UK, Income Tax rates and Personal Allowances (the Personal Allowance taper), GOV.UK, Income Tax in Scotland and GOV.UK, Tax codes.

Codes made of a number and the letter L, M, N or T, such as 1257L or 1100L: the number times ten is your tax-free amount, so 1257L gives £12,570. A leading S (Scottish income tax) or C (Welsh income tax) is accepted; choose where you pay tax with the menu. An emergency ending (W1, M1 or X) makes no difference to a full year at steady pay and is ignored.

0T gives no tax-free amount, BR taxes all the pay from this job at 20%, and NT means no income tax is taken. K codes, which add an amount to taxable pay, and the D0, D1 and D2 codes used for a second job are not covered. GOV.UK, Tax codes explains what each letter means, and your payslip or the HMRC app shows your own code.

The pension percentage is taken from your gross pay before income tax, as it is in a workplace scheme using a net pay arrangement. It lowers the income tax you pay but not National Insurance or student loan repayments, which are worked out on pay before the pension.

Some schemes work differently. Under relief at source the contribution is taken after tax and the pension provider claims basic-rate tax relief from HMRC, so your take-home pay is lower than shown here. Under salary sacrifice your salary itself is reduced, which also saves National Insurance. Many schemes also take the percentage of only part of your pay (qualifying earnings), not all of it. Your payslip or your scheme's documents say which applies to you.

It covers one job, paid the same amount each period, for the 2026 to 2027 tax year. It does not allow for benefits in kind such as a company car, salary sacrifice schemes, income from more than one job or pension, self-employed income, tax code adjustments for things such as untaxed income or the High Income Child Benefit Charge, the Marriage Allowance, the Blind Person's Allowance, or tax relief on expenses.

It assumes National Insurance category A. People over State Pension age pay no employee National Insurance, apprentices under 25 and people with other category letters may pay different amounts, and none of these is covered. The figures are an estimate for planning, not advice; HMRC and your employer's payroll decide what is actually taken.