How your take-home pay is worked out
For the 2026/27 tax year (6 April 2026 to 5 April 2027), in England, Wales and Northern Ireland:
| Personal allowance (tax-free) | £12,570 |
|---|---|
| Basic rate 20% | £12,571 to £50,270 |
| Higher rate 40% | £50,271 to £125,140 |
| Additional rate 45% | Over £125,140 |
| National Insurance | 8% from £12,570, 2% above £50,270 |
You lose £1 of personal allowance for every £2 you earn over £100,000. The tax bands are frozen until April 2031, so as pay rises, more of it is taxed at higher rates.
Student loan repayments
| Plan 1 | 9% above £26,900 |
|---|---|
| Plan 2 | 9% above £29,385 |
| Plan 4 (Scotland) | 9% above £33,795 |
| Plan 5 | 9% above £25,000 |
| Postgraduate Loan | 6% above £21,000 |
Worked example
Jess pays 5% into her workplace pension before tax and has a Plan 2 student loan.
| Pension | £2,250 |
|---|---|
| Income tax | £6,036 |
| National Insurance | £2,594 |
| Student loan | £1,405 |
| Take-home pay | £32,714 a year (£2,726 a month) |
Ways to keep more of your pay
- Ask about salary sacrifice. Paying into your pension this way also saves National Insurance and can lower student loan repayments.
- Check your tax code. Most people are on 1257L. If yours is different, check why on your HMRC app.
- Earning over £60,000 with children? Use the Child Benefit charge calculator.
- Earning over £100,000? Use the £100k tax trap calculator.
Want help with your finances?
A regulated financial adviser can look at your pension, savings and tax together.
Find a financial adviserQuestions
Do you cover Scotland?
Not yet for income tax. Scotland has different bands and rates. National Insurance and student loans are the same across the UK.
Why is my payslip different?
Your payslip spreads tax over the year using your tax code. Benefits in kind, a different tax code, or pay that changes month to month can all make it differ from this estimate.
What does this calculator leave out?
Tax codes other than 1257L, benefits in kind, the Marriage Allowance, Blind Person’s Allowance, other income and Scottish rates. It’s a guide, not tax advice.