Understanding your take-home pay can feel complicated — but once you know how UK income tax and National Insurance work, the maths is straightforward. This guide walks you through exactly how your salary is taxed in the 2026/27 tax year, with worked examples so you can see the numbers clearly.
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Enter your salary and student loan plan for your exact 2026/27 take-home pay — yearly, monthly, weekly and daily.
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Full breakdowns for 21 UK salaries from £20,000 to £100,000.
What Is Take-Home Pay?
Your take-home pay — also called your net pay — is what's left of your salary after these deductions:
- • Income Tax
- • National Insurance contributions (NICs)
- • Student loan repayments (if applicable)
- • Pension contributions (if you're in a workplace scheme)
Your employer takes these off automatically through PAYE (Pay As You Earn), so the amount that reaches your bank account is already after deductions.
Step 1 — Understand Your Personal Allowance
The first thing that affects your take-home pay is your Personal Allowance — the amount you can earn each year tax-free.
For 2026/27, the Personal Allowance is £12,570.
- • If you earn £12,570 or less, you pay no income tax
- • If you earn more than £12,570, you only pay tax on the amount above it
- • If you earn over £100,000, your Personal Allowance is gradually reduced — reaching zero at £125,140
💡 The Personal Allowance has been frozen at £12,570 since 2021/22, and the government has said it will stay there until 5 April 2031.
Step 2 — Know the UK Income Tax Bands for 2026/27
Income tax in the UK is progressive — you pay different rates on different slices of your income. You never pay the higher rate on your full salary, only on the slice that falls into each band.
Here are the income tax bands for England, Wales and Northern Ireland in 2026/27:
| Band | Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland has its own income tax bands — see the Scottish rates for 2026/27.
Worked example — £35,000 salary
- • First £12,570 → £0 tax (Personal Allowance)
- • Remaining £22,430 (£35,000 − £12,570) → £4,486 tax at 20%
- Total income tax = £4,486
Step 3 — Calculate National Insurance (NI)
National Insurance is a separate deduction from income tax. For employees (Class 1, category A) in 2026/27:
| Earnings | NI Rate |
|---|---|
| Up to £12,570 a year | 0% |
| £12,571 – £50,270 a year | 8% |
| Above £50,270 a year | 2% |
The NI thresholds line up with income tax: you start paying NI at the same point you start paying income tax, and the NI rate drops to 2% where the higher rate of income tax begins.
Worked example — £35,000 salary continued
- • First £12,570 → £0 NI
- • Remaining £22,430 → £1,794.40 NI at 8%
- Total NI = £1,794.40
Step 4 — Work Out Your Take-Home Pay
Now bring it all together. For a £35,000 salary in England (2026/27), with no student loan or pension:
| Gross salary | £35,000 |
| Income Tax | − £4,486 |
| National Insurance | − £1,794.40 |
| Take-home pay | £28,719.60 |
| Monthly take-home | £2,393.30 |
That's about 82p of every £1 kept.
Quick Reference: Take-Home Pay for 2026/27
Take-home pay at common salaries from £20,000 to £60,000 (England, Wales & NI, no pension, no student loan). Click a salary for its full breakdown:
| Gross Salary | Income Tax | NI | Take-Home (Year) | Take-Home (Month) |
|---|---|---|---|---|
| £20,000 | £1,486 | £594.40 | £17,919.60 | £1,493.30 |
| £25,000 | £2,486 | £994.40 | £21,519.60 | £1,793.30 |
| £30,000 | £3,486 | £1,394.40 | £25,119.60 | £2,093.30 |
| £35,000 | £4,486 | £1,794.40 | £28,719.60 | £2,393.30 |
| £40,000 | £5,486 | £2,194.40 | £32,319.60 | £2,693.30 |
| £50,000 | £7,486 | £2,994.40 | £39,519.60 | £3,293.30 |
| £60,000 | £11,432 | £3,210.60 | £45,357.40 | £3,779.78 |
🧮 Want your exact figure? Use our free Salary Tax Calculator (it includes student loan repayments), or see every salary in the take-home pay table.
What Else Can Reduce Your Take-Home Pay?
Student Loan Repayments
You repay a share of your income above your plan's threshold. The 2026/27 thresholds, and what each plan costs on a £35,000 salary:
| Plan | Threshold (2026/27) | Rate | On £35,000 |
|---|---|---|---|
| Plan 1 | £26,900 | 9% | £729/year |
| Plan 2 | £29,385 | 9% | £505.35/year |
| Plan 4 | £33,795 | 9% | £108.45/year |
| Plan 5 | £25,000 | 9% | £900/year |
| Postgraduate Loan | £21,000 | 6% | £840/year |
Not sure which plan you're on? Check which repayment plan you are on on GOV.UK.
Pension Contributions
If you're automatically enrolled in a workplace pension, the legal minimum is 5% from you and 3% from your employer (8% in total). In most schemes this is worked out on your earnings between £6,240 and £50,270 a year. Contributions reduce your take-home pay today but build your pension savings. Our calculator does not deduct pension contributions — if you use salary sacrifice, enter your salary after the sacrifice.
Tax Code
Your tax code (on your payslip — for most people with one job it's 1257L) tells your employer how much tax-free income you get. 1257L reflects the standard £12,570 Personal Allowance. If your code is wrong you could pay too much or too little tax, so it's worth checking in your Personal Tax Account.
What About the 60% Tax Trap?
Between £100,000 and £125,140, your Personal Allowance falls by £1 for every £2 you earn above £100,000. That creates an effective income tax rate of 60% on income in this range. Add 2% National Insurance and you keep just £38 of every extra £100 you earn.
Scotland — Different Tax Bands Apply
If you live in Scotland, you pay Scottish Income Tax on your wages instead, with six bands for 2026/27. National Insurance and student loan repayments are the same across the UK. Our Salary Tax Calculator uses the England, Wales & NI income tax rates, so for Scotland use the Scottish bands in our income tax guide.
How to Increase Your Take-Home Pay
There are a few legal ways to keep more of your salary:
- ✓Salary sacrifice pension — Giving up salary in exchange for employer pension contributions can mean you pay less tax and National Insurance. It cannot take your cash pay below the minimum wage.
- ✓Claim tax relief on job expenses — If you use your own money for things you must buy for your job and only use for work (such as tools, uniforms or working from home), you might be able to claim tax relief from HMRC.
- ✓Check your tax code — If your code is wrong, you may have overpaid tax and could be due a refund.
- ✓Marriage Allowance — If you earn less than £12,570 and your spouse or civil partner pays the basic rate, you can transfer £1,260 of your Personal Allowance to them, cutting their tax by up to £252.
Calculate Your Exact Take-Home Pay Now
Enter your gross salary and student loan plan in our UK Salary Tax Calculator for an instant 2026/27 breakdown of income tax, National Insurance and take-home pay — or browse take-home pay for 21 common salaries.
Summary — Key 2026/27 Figures at a Glance
| 2026/27 | Amount / Rate |
|---|---|
| Personal Allowance | £12,570 |
| Basic rate (20%) | £12,571 – £50,270 |
| Higher rate (40%) | £50,271 – £125,140 |
| Additional rate (45%) | Over £125,140 |
| NI main rate (employees) | 8% |
| NI upper rate | 2% (above £50,270) |
| NI Primary Threshold | £12,570 |
| Plan 2 student loan threshold | £29,385 |
Last updated: 1 October 2026 · Sources: HMRC: Rates and thresholds for employers 2026 to 2027; GOV.UK: Income Tax rates and Personal Allowances; GOV.UK: National Insurance – how much you pay; GOV.UK: Repaying your student loan – what you pay; GOV.UK: Workplace pensions – what you, your employer and the government pay; GOV.UK: Income Tax in Scotland; HM Treasury: thresholds maintained until 5 April 2031; GOV.UK: Marriage Allowance; HMRC: Salary sacrifice and the effects on PAYE; GOV.UK: Claim tax relief for your job expenses
For information only, not tax advice. Figures are estimates for a standard case; your own tax position may differ. Check with the official source or a qualified adviser before making decisions.
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