UK Take-Home Pay 2026/27: How Tax, NI and Pension Deductions Work
What comes out of your salary in 2026/27, with worked examples from £25,000 to £60,000.
Updated October 2026 · Rates checked against GOV.UK for the 2026/27 tax year (6 April 2026 to 5 April 2027)
Quick answer: your take-home pay is your gross salary minus Income Tax, National Insurance, any pension contribution and any student loan repayment. In England, Wales and Northern Ireland you pay 0% on the first £12,570, then 20%, 40% and 45%. Scotland uses its own bands. To see your own figure, use the free UK take-home pay calculator.
Updated October 2026. Rates checked against GOV.UK for the 2026/27 tax year (6 April 2026 to 5 April 2027).
What do you need before calculating your take-home pay?
Take-home pay is what is left of your earnings after Income Tax, National Insurance and pension contributions come out. A salary calculator is only as accurate as the numbers you put in, so gather these first:
- Your gross annual salary, including regular bonuses or overtime.
- Where you live. England, Wales and Northern Ireland share one set of income tax bands; Scotland has its own.
- Your pension contribution, including workplace auto-enrolment percentages.
- Your student loan plan type, if you have one.
- Your tax code, shown on your payslip. If it looks wrong, check it with the tax code checker.
Do you need to sign up to use a take-home pay calculator?
No. The PayToolkit take-home pay calculator needs no account and no email address. The figures follow GOV.UK rates, and the approach is explained on our methodology page.
What actually reduces your UK salary?
Income Tax and National Insurance take the largest share. Pension contributions and student loan repayments reduce your pay further, and taxable company benefits such as medical insurance can add to your tax bill even though no cash reaches your payslip.
- Income Tax, based on your tax band.
- National Insurance, charged at 8% on earnings between £12,570 and £50,270 and 2% above that for employees. Try the National Insurance calculator.
- Pension contributions, whether auto-enrolled or voluntary.
- Student loan repayments, once earnings pass the threshold for your plan. See the student loan repayment guide.
- Taxable benefits in kind, which usually change your tax code.
Why does take-home pay matter more than gross salary?
Take-home pay is the figure that pays your rent, bills and food, not the salary on the job advert. Budgeting from gross pay is one of the most common planning mistakes, and a small error can leave you short before payday.
How do UK income tax bands work in 2026/27?
Income Tax is charged in slices. Only the part of your income that falls inside a band is taxed at that band's rate, so a pay rise never reduces your take-home pay below what you earned before it. These bands apply in England, Wales and Northern Ireland:
- Personal Allowance: income up to £12,570, taxed at 0%
- Basic rate: £12,571 to £50,270, taxed at 20%
- Higher rate: £50,271 to £125,140, taxed at 40%
- Additional rate: over £125,140, taxed at 5%
Chart of UK income tax bands for 2026/27 showing personal allowance, basic, higher and additional rates
The Personal Allowance shrinks by £1 for every £2 you earn above £100,000, which creates an effective 60% rate on income between £100,000 and £125,140. Our guide to the £100k tax trap explains how to manage it. For more detail on the allowance itself, read the Personal Allowance explained, or see all the rates in our 2026/27 UK tax brackets guide.
What if you live in Scotland?
Scotland sets its own income tax rates and bands, with six bands from 19% to 48%. National Insurance and the Personal Allowance are the same across the UK. Scottish taxpayers should use the Scotland take-home pay calculator and can read the Scottish income tax bands in full. Using the standard calculator for a Scottish salary gives the wrong answer.
What happens if too much tax is deducted?
Overpayment is common after a job change, an emergency tax code or a bonus. If HMRC has taken too much, you can claim it back; the P800 tax refund calculator gives an idea of what to expect.
Worked examples: what you keep from £25,000 to £60,000
These figures are for England, Wales and Northern Ireland, 2026/27, with no pension contribution and no student loan. They show how much of each salary reaches your bank account.
- £25,000 salary: Income Tax £2,486, National Insurance £994.40, take-home £21,519.60 a year (£1,793.30 a month)
- £35,000 salary: Income Tax £4,486, National Insurance £1,794.40, take-home £28,719.60 a year (£2,393.30 a month)
- £50,000 salary: Income Tax £7,486, National Insurance £2,994.40, take-home £39,519.60 a year (£3,293.30 a month)
- £60,000 salary: Income Tax £11,432, National Insurance £3,210.60, take-home £45,357.40 a year (£3,779.78 a month)
Want a different salary? The salary comparison page lets you compare figures, and the 2026/27 take-home pay report covers the full range.
How do pension contributions change your pay?
A pension contribution lowers your take-home pay today but builds retirement savings and, in most workplace schemes, reduces the tax you pay. The exact effect depends on how your scheme works:
- Net pay arrangement: the contribution comes off your pay before Income Tax, so you get tax relief straight away.
- Relief at source: the contribution comes out of pay you have already been taxed on, and the pension provider adds basic-rate relief.
- Salary sacrifice: you give up part of your salary, which reduces both Income Tax and National Insurance.
Check which applies on your payslip or with your employer, then test the effect with the pension calculator. Our pension tax relief guide explains the three methods in more detail.
Does a pension contribution lower take-home pay every month?
Yes. A regular contribution reduces your monthly net pay, though by less than the contribution itself where tax relief applies. The trade-off is lower pay now for more retirement income later.
How do you use the PayToolkit take-home pay calculator?
- Enter your annual salary. This drives every other figure on the page.
- Add pension and student loan details if they apply to you.
- Read the monthly breakdown to see what reaches your bank account after deductions.
- Test a pay rise. Swap in the new salary, or use the pay rise calculator, to see how much extra you keep each month.
- Add overtime or a bonus with the overtime calculator or the bonus tax calculator.
Ready to check your own pay? Open the free take-home pay calculator. No sign-up needed.
Can you work backwards from a take-home figure?
Yes. If you know the monthly amount you need, the net to gross salary calculator shows the salary required to reach it.
What mistakes should you avoid when calculating?
- Ignoring overtime and bonuses. Extra income is taxed at your top rate, so it rarely adds up to the headline figure.
- Using the wrong region. Scottish taxpayers need Scottish bands.
- Forgetting pension or student loan. Both change the result noticeably.
- Not checking your tax code. A wrong code is the most common reason for overpaying. Read tax codes explained.
- Assuming a pay rise arrives pound for pound. A £2,000 raise at basic rate adds roughly £1,440 after 20% tax and 8% National Insurance.
Conclusion
Your UK take-home pay depends on four things: your tax band, National Insurance, your pension arrangement and any student loan. Enter your real figures into the take-home pay calculator rather than guessing, and recheck whenever your salary, tax code or pension changes.
Figures are estimates for the 2026/27 tax year and are not financial or tax advice. Sources: GOV.UK Income Tax rates and Personal Allowances and GOV.UK National Insurance.