This calculator applies HMRC-published income tax bands and National Insurance thresholds for the 2026/27 tax year (6 April 2026 to 5 April 2027). All figures are for employed workers under PAYE (Pay As You Earn).
Income tax is calculated after deducting the personal allowance (£12,570). If income exceeds £100,000, the personal allowance tapers by £1 for every £2 above £100,000, creating an effective 60% marginal rate between £100,000 and £125,140. The personal allowance reaches zero at £125,140. Scottish taxpayers use the six-band Scottish rate structure set by the Scottish Parliament; employee NI is reserved to Westminster and is identical across the UK.
Pension contributions are modelled as salary sacrifice — they reduce the gross pay on which both income tax and NI are assessed. This is the most tax-efficient method. If your employer uses a personal pension with relief at source, the tax saving is the same but the NI treatment may differ slightly.
Student loan repayments are applied at the statutory rates for each plan after other deductions. Plan 1 and Plan 2 repayments are 9% of income above the respective annual threshold. Postgraduate repayments are 6% above £21,000. You can hold both a Plan 1 or Plan 2 loan and a postgraduate loan simultaneously.
Results are estimates only. Actual take-home may differ due to benefits in kind, Marriage Allowance, other deductions, or tax code adjustments. See PAYE Explained for how your employer calculates tax each month.
Frequently Asked Questions
The personal allowance is £12,570 — unchanged since 2021/22 and currently frozen until 2028. It is the amount you can earn before paying income tax. If your income exceeds £100,000, the allowance tapers by £1 for every £2 above that threshold, reaching zero at £125,140. This creates an effective 60% marginal rate in that band.
Employee Class 1 NI is charged at 8% on earnings between £12,570 (the Primary Threshold) and £50,270 (the Upper Earnings Limit), and 2% on earnings above £50,270. There is no NI on earnings below £12,570. NI is calculated per pay period rather than cumulatively — so there is no NI equivalent of emergency tax. See our NI explained guide for full details.
Above £100,000 the personal allowance tapers at £1 per £2 of income. This means you pay income tax on income that would otherwise be tax-free, creating an effective 60% marginal rate (40% higher-rate tax + 20% on the tapered allowance). The most effective solution is pension salary sacrifice to bring income below £100,000.
Scotland operates six income tax bands in 2026/27: 19% starter (£12,571–£14,921), 20% basic (£14,922–£26,270), 21% intermediate (£26,271–£43,662), 42% higher (£43,663–£75,000), 45% advanced (£75,001–£125,140), and 48% top rate (above £125,140). National Insurance rates are set by Westminster and are identical across the UK. Use the Scottish taxpayer toggle above to switch to Scottish rates.
Salary sacrifice reduces gross pay before tax and NI are calculated. A basic-rate taxpayer saves 20% income tax and 8% NI — a combined saving of 28p per £1 sacrificed. The net cost of contributing £100 to your pension is therefore only £72 from take-home. A higher-rate taxpayer saves 40% tax + 2% NI = 42p per £1. This makes salary sacrifice one of the most efficient ways to reduce your tax bill. See our salary sacrifice guide for worked examples.
Gross pay is your contractual salary before any deductions. Net pay (take-home) is what you receive after income tax, National Insurance, pension contributions and student loan repayments have been deducted by your employer. For a £35,000 gross salary with a 5% pension contribution and no student loan, net pay is typically around £26,500–£27,500 per year. See our PAYE explained guide for how this is calculated each month.