£ UK Pay CalculatorTake-home pay 2026/27 Rates: 2026/27 · Apr 2026

UK salary calculator — what will you actually take home?

Enter your salary and see exactly what lands in your bank account after income tax, National Insurance, pension and student loan — using the real 2026/27 rates for where you live. It doubles as an income tax calculator and a National Insurance calculator too, so you can see each deduction on its own, whether you're in England, Wales, Northern Ireland or Scotland.

Personal allowance £12,570 Basic rate 20% to £50,270 Employee NI 8% then 2% Scotland: 6 bands, 19%–48% Updated April 2026

Hours/week is only used for the hourly rate below.

Scotland sets its own income tax bands. National Insurance is the same UK-wide.

Salary sacrifice cuts tax, NI and student loan. Most workplace schemes now use it — check your payslip.

More options — tax code, age, extra pay
Your take-home pay
£29,842
£2,487 a month · £574 a week
Per month£2,487
Per week£574
Per hour£15.31

Where your salary goes

Effective tax 19.4%
Per yearPer monthPer week

Your monthly payslip, simplified

Employer cost on top of your salary (employer NI at 15% above £5,000): a year. That money never touches your payslip, but it's part of what you cost to employ.

Take-home pay on common salaries — 2026/27

The pages people search for most. Each one is worked out in full — tax, NI, and what changes in Scotland. Tap one to load it in the salary calculator above.

2026/27 rates at a glance

England, Wales & Northern Ireland

BandOn incomeRate
Personal Allowance£0 – £12,5700%
Basic rate£12,571 – £50,27020%
Higher rate£50,271 – £125,14040%
Additional rateOver £125,14045%

Allowance falls £1 for every £2 earned over £100,000, and is gone at £125,140. Thresholds frozen until April 2031.

Scotland

BandOn incomeRate
Starter£12,571 – £16,53719%
Basic£16,538 – £29,52620%
Intermediate£29,527 – £43,66221%
Higher£43,663 – £75,00042%
Advanced£75,001 – £125,14045%
TopOver £125,14048%

Starter and Basic thresholds rose 7.4% in April 2026. Same £12,570 Personal Allowance and taper as the rest of the UK.

National Insurance & student loans (UK-wide)

Employee NIRate
£0 – £12,5700%
£12,571 – £50,2708%
Over £50,2702%
Student loan 2026/27ThresholdRate
Plan 1£26,9009%
Plan 2£29,3859%
Plan 4 (Scotland)£33,7959%
Plan 5£25,0009%
Postgraduate£21,0006%

You only repay the percentage on earnings above the threshold — never on your whole salary. Postgraduate repayments run alongside an undergraduate plan.

Questions people ask at offer stage

Is £40,000 a good salary in the UK in 2026?
It's above the median full-time salary (around £37–38k). On £40,000 in England with a 5% salary-sacrifice pension and Plan 2 loan you'll take home roughly £2,450–£2,550 a month depending on pension and loan. The salary calculator above gives your exact figure — try turning the student loan off to see its real monthly cost (about £80/month at this salary).
Why is my take-home lower in Scotland?
Above about £29,526 Scotland's bands bite earlier: 21% instead of 20%, then 42% from £43,663 while England stays at 20% until £50,270. Below £29,526 Scotland is actually slightly cheaper thanks to the 19% starter rate (max saving about £40/year). See the side-by-side comparison.
Does my pension really save tax, or just move it?
With salary sacrifice it genuinely saves: the contribution leaves before tax, NI and student loan are worked out, so a basic-rate payer keeps roughly 72p of every £1 sacrificed instead of paying 28% in tax+NI (37% with a Plan 2 loan). The tax is deferred until you draw the pension, usually at a lower rate in retirement.
Why did my pay drop after a pay rise past £100k?
Between £100,000 and £125,140 you lose Personal Allowance as well as paying 40% tax, so each extra £1 can attract 60% income tax plus 2% NI — a 62% marginal rate (67.5% in Scotland). Pension contributions are the standard way to push back under £100k. Full explainer: the £100k trap.
Do I pay National Insurance on a bonus?
Yes — a bonus is earnings for NI, charged at 8% between the monthly thresholds and 2% above. Because NI is calculated per pay period, a big one-off bonus is often charged at just 2% on most of it. Worked example in the bonus National Insurance guide.
How is overtime taxed in the UK?
Exactly like the rest of your pay: income tax at your marginal rate, NI, and student loan if you have one. There is no special overtime tax rate — and “time-and-a-half” is your employer's policy, not HMRC's. See how overtime is taxed.
Salary guide · 2026/27

Take-home pay on £40,000

Try it with your pension and student loan

All salaries

Nearby salaries

Calculator · 2026/27

Contractor take-home pay calculator

The same contract value, three ways of getting paid: your own limited company (director's salary + dividends), an umbrella company, or plain PAYE. Built on 2026/27 corporation tax, dividend tax and National Insurance rates.

46 weeks leaves room for holidays, bank holidays and gaps between contracts.

Limited company: paid by the company straight into your pension, before corporation tax. Umbrella & PAYE: salary sacrifice. It's your money, so it's shown separately from take-home below.

Limited company & umbrella settings

£12,570 is the usual optimum for 2026/27 — why is explained below.

Limited company: deductible business costs (accountancy, insurance, software, travel). Umbrella: they only count if your umbrella reimburses genuine expenses out of the rate — ordinary commuting doesn't qualify.

What the umbrella keeps for running payroll — typically £80–£130 a month.

Best take-home — limited company
£0
Contract value£0
Per month£0
Into pension£0

Side by side — where the contract value goes

Limited co.UmbrellaPAYE

Assumes: no other income, all post-tax company profit drawn as dividends in the same year, no associated companies, company expenses are allowable business costs (umbrella: only where your umbrella reimburses genuine expenses out of the rate), England/Wales/NI income tax (Scottish salary rates differ slightly; dividend rates are UK-wide). The PAYE column treats the whole contract value as salary — a real permanent job rarely pays the same headline figure, but it shows what employment does to the same pot of money. Umbrella employer NI and the 0.5% apprenticeship levy come out of the assignment rate before your gross pay, as they do on real umbrella payslips. Estimates only, not financial advice — IR35 status and individual circumstances change the picture.

How the limited company figure is built

Dividends can only be paid from profit left after corporation tax, and they carry no National Insurance. One catch the headline figures above do include: student loan repayments are charged on directors' total income (salary + dividends) through Self Assessment rather than payroll, so a Plan 2 loan quietly takes 9% of almost everything the company pays you — salary sacrifice under PAYE or an umbrella shelters more of the income from the loan than dividends do.

IR35: the part that decides whether any of this applies

Outside IR35

You're genuinely in business on your own account — control over how the work is done, a real right of substitution, no mutuality of obligation. You invoice through your limited company and pay yourself salary + dividends as modelled above. This is where the limited company advantage lives.

Inside IR35

The engagement looks like employment under another name. Tax and NI are deducted from the fee as if you were an employee (a “deemed employment payment”), which removes most of the limited company benefit. That's why most inside-IR35 contractors get paid through an umbrella instead — same tax outcome, no company admin.

Who decides?

For medium and large clients, the end client must issue a Status Determination Statement (SDS) before the work starts — read it, and challenge it if it's blanket “inside”. HMRC's CEST tool gives an indication, not a guarantee. For small clients — since April 2026, those meeting two of: turnover £15m or less, balance sheet £7.5m or less, 50 or fewer employees — you still determine your own status, and carry the risk if HMRC disagrees.

If a contract is inside IR35, compare the umbrella and PAYE columns above — or model the limited company with the contract value treated as salary. An “outside” determination on an inside-looking contract can leave you (or the client) with the back-tax bill, so status advice is worth paying for before you sign.

Contractor questions, answered

Why is the optimal director's salary £12,570 in 2026/27?
£12,570 exactly uses your Personal Allowance, so there's no income tax on the salary, and it sits at the employee NI primary threshold, so there's no employee NI either. The company does pay 15% employer NI on the £7,570 above the £5,000 secondary threshold (£1,135.50) — but the salary and that employer NI both reduce corporation tax, so keeping more profit back to dividend out instead would cost more overall. Try a lower salary in the settings above and watch the total change.
How much corporation tax will my company pay?
19% on taxable profits up to £50,000, 25% above £250,000, and marginal relief between the two (an effective 26.5% on profit in that band). Your director's salary, employer NI, company pension contributions and allowable expenses all come off profit before corporation tax — dividends don't. If you control a second company, the £50k/£250k thresholds are split between them.
What changed about dividend tax in April 2026?
The basic and higher dividend rates each rose two percentage points on 6 April 2026: 10.75% within the basic-rate band, 35.75% at the higher rate, 39.35% (unchanged) at the additional rate. The dividend allowance stayed at £500. On £50,000 of dividends that's roughly £900–£1,000 more tax a year than under the old rates, depending on how much falls in the higher band — the limited company route still wins for most contractors, but by a narrower margin.
Can I still claim expenses through an umbrella?
Usually not for ordinary commuting and subsistence — since 2016, umbrella workers under supervision, direction or control can't claim travel expenses tax-free, which killed the old “expenses through the umbrella” model. Genuinely mobile workers with multiple temporary workplaces sometimes can. Legitimate expenses are a real (if modest) limited company advantage; the expenses field above applies to both so you can test the difference.
Comparison · 2026/27

Scotland vs England: who pays more tax?

Same salary, same National Insurance — the only difference is income tax. Scotland's 19% starter rate helps lower earners by a few pounds a year; from £29,526 upwards Scotland costs more, and the gap widens fast after £43,663.

SalaryEngland taxScotland taxScotland paysPer month

Income tax only, full £12,570 Personal Allowance, no pension or loan. Your tax region is set by where you live, not where you work — HMRC puts an “S” prefix on Scottish tax codes (e.g. S1257L).

Why the gap exists

The £40 saving

Between £12,571 and £16,537 Scotland charges 19% instead of 20%. On that £3,967 slice you save at most £39.67 a year — real, but about 76p a week.

The crossover

At £29,526 the saving is used up. From there Scotland's 21% intermediate rate (vs 20%) and especially 42% from £43,663 (vs 20% until £50,270) pull ahead quickly.

The £50k gap

On £50,000 a Scottish taxpayer pays roughly £1,490 more income tax a year than an English one — about £124 a month — because £6,337 of income is taxed at 42% instead of 20%.

Calculator · 2026/27

Student loan repayment calculator

You repay a percentage of what you earn above your plan threshold — not of your whole salary, and not based on how much you owe. Here's what actually comes off your payslip.

Plan 2 threshold is frozen at £29,385 until April 2030. Plan 5 stays at £25,000 until April 2027. Postgraduate has been £21,000 since 2019.

Your repayment
£42
per month
Per year£505
Per week£10
Over remaining term*£15,150

What this means with tax and NI included

SalaryPlan 2 / monthPer year

*Simple projection at today's salary with no pay rises or interest — for scale only. Most Plan 2 and Plan 5 borrowers never clear the balance before write-off; whether extra voluntary repayments make sense depends on your earnings path, not the balance alone. This isn't financial advice.

Repayments stop automatically when you earn below the threshold, change with every pay rise, and are written off at the end of the term (or age 65 for some older Plan 1 loans) — unpaid balance included.

Which plan am I on?

PlanWho2026/27 threshold
Plan 1England/Wales before Sep 2012; all Northern Ireland£26,900 · 9%
Plan 2England Sep 2012–Jul 2023; Wales from Sep 2012£29,385 · 9%
Plan 4Scotland£33,795 · 9%
Plan 5England from Aug 2023£25,000 · 9%
PostgraduateMaster's/PhD loan, England & Wales£21,000 · 6%

Two loans at once?

If you have an undergraduate loan and a Postgraduate Loan you repay both at the same time — e.g. Plan 2 at 9% above £29,385 plus 6% above £21,000. On £40,000 that's about £80 + £95 = £175/month. Tick “also Postgraduate” in the main calculator to see the combined effect.

Bonuses and overtime

PAYE applies the threshold per pay period, so a one-off bonus month can trigger a deduction even if your annual salary is below the threshold — it's not refunded automatically in-year.

Explainer · 2026/27

The £100k trap: the 60% tax band nobody tells you about

There's no 60% rate in the tax tables — but between £100,000 and £125,140 that's exactly what many people pay. Here's how it happens, what it costs, and the legitimate ways around it.

See it on your own salary

Personal Allowance left
£7,570
Lost to the taper
£5,000
Marginal rate on next £1
62%

Personal Allowance vs income. The allowance — and free childcare hours and Tax-Free Childcare eligibility, which also cut off at £100,000 — all hinge on adjusted net income: your income minus gross pension contributions and Gift Aid.

How the trap works

1 · The taper

For every £2 you earn over £100,000, you lose £1 of your £12,570 Personal Allowance. At £125,140 it's entirely gone. Earning £25,140 extra costs you the full £12,570 allowance.

2 · The double hit

Income in the taper zone is taxed at 40% and drags previously tax-free income into tax as the allowance shrinks. £100 of extra pay: £40 tax + £50 of allowance lost × 40% = £60 tax. Add 2% NI = 62p in every £1 gone.

3 · In Scotland it's worse

The same UK-wide taper interacts with Scotland's 45% Advanced rate: 45% + (50% × 45%) = 67.5% income tax, plus 2% NI. Free childcare cut-offs apply in the same way.

What people do about it

SituationCommon, legitimate response
Earning £100k–£125k with a workplace pensionIncrease salary-sacrifice pension contributions to bring adjusted net income back to £100,000 or below — restores the allowance (and childcare support) and gets 62% effective relief on that slice.
Bonus would tip you over £100kAsk payroll about sacrificing the bonus into pension instead of taking it as pay (mind the £60,000 annual allowance, tapered above £260k).
Two earners, one just over £100kPension contributions and Gift Aid donations reduce adjusted net income; charitable donations count at their grossed-up value.
Self-employed / directorTiming income and employer pension contributions across the 5 April year-end can keep a year under the threshold.

Worked example: on £110,000, sacrificing £10,000 into a pension restores £5,000 of Personal Allowance. That £10,000 contribution effectively costs about £3,800 of take-home — the rest is tax and NI you no longer pay. Always check pension annual allowance and get regulated advice for large contributions; this page is education, not advice.

The numbers at key salaries (England, no pension/loan)

SalaryPersonal AllowanceIncome taxTake-home / yearMarginal rate
Guide · 2026/27

Guide

Open the take-home calculator All guides

More questions people ask

Guides

Short, plain-English guides

No jargon, no upsell — just how the UK pay system actually works, in the order most people need it.

Asked as questions, answered with numbers

The background reading

Start here

How UK income tax works

You never pay the higher rate on all your income. Tax is charged in slices: 0% on the first £12,570 (your Personal Allowance), 20% on the next slice, and so on. Earning £55,000 doesn't mean 40% tax on £55,000 — only £4,730 of it is taxed at 40%.

Bands are frozen until 2031, so pay rises push more of your income into higher slices over time — “fiscal drag.” Your tax code (usually 1257L) tells payroll your allowance: the number × 10 is your tax-free amount.

Payslip

Reading your payslip

Gross pay is before deductions. Then, in rough order: pension (if salary sacrifice, this comes off first), income tax (PAYE), National Insurance, student loan. What's left is net pay. “Tax period” 1–12 counts months from April; cumulative codes smooth tax across the year, while W1/M1 codes tax each month in isolation (common in a first month — it usually corrects itself).

NI

National Insurance, minus the mystery

Employees pay 8% on earnings between £12,570 and £50,270, then 2% above that. Unlike income tax it's worked out per pay period, not cumulatively — so two jobs or a bonus month can mean more NI than the annual figures suggest. It funds the State Pension and benefits; you need 35 qualifying years for the full pension. Employee NI stops at State Pension age; income tax doesn't.

Pension

Pension contributions and your take-home

Auto-enrolment minimums are 5% from you (including tax relief) and 3% from your employer, on earnings between £6,240 and £50,270. With salary sacrifice your contribution also cuts NI and student loan; with net pay it cuts tax only. Dropping below £100k adjusted net income via pension is the classic way to escape the 60% taper zone.

Changing jobs

Why is my take-home different this month?

The usual suspects: a W1/M1 emergency code in month one, a bonus or overtime pushing a pay-period NI/student-loan deduction, pension starting or changing, backdated pay rises, or benefits (company car, medical cover) taxed through your code. Compare the tax code and each deduction line against last month before assuming payroll is wrong.

Scotland

How Scottish tax works

Scotland sets rates on earned income only — savings and dividends follow UK-wide rules, and NI is UK-wide too. Residence decides it: live in Scotland and you're a Scottish taxpayer for the whole year, wherever you work. Check your code starts with “S”. Full comparison on the Scotland vs England page.

About

About UK Pay Calculator

UK Pay Calculator exists for one moment: the gap between hearing a salary and knowing what it means. Job offers, pay rises, moving between Scotland and England, a first graduate job with a student loan — the headline number is never the number you live on.

How the calculations work

Every figure on this site is worked out in your browser from the published 2026/27 rates: the £12,570 Personal Allowance and its £100,000 taper, England/Wales/NI bands (20/40/45%), Scottish bands (19/20/21/42/45/48% with the April 2026 threshold rises), employee National Insurance (8% between £12,570–£50,270, 2% above), student loan thresholds (Plan 1 £26,900; Plan 2 £29,385; Plan 4 £33,795; Plan 5 £25,000; Postgraduate £21,000 at 6%), and pension contributions under salary sacrifice or net pay arrangements.

The contractor calculator adds the company side: corporation tax (19% small profits rate to £50,000, 25% main rate from £250,000, marginal relief between), employer National Insurance at 15% above the £5,000 secondary threshold, company pension contributions, and personal dividend tax for 2026/27 (dividend allowance £500; 10.75% basic, 35.75% higher, 39.35% additional — the first two rose two percentage points on 6 April 2026). Rates were last checked against HMRC and Scottish Government publications in April 2026 for the tax year 6 April 2026 to 5 April 2027.

What this isn't

Estimates, not financial advice. Real payslips vary with benefits in kind, bonuses, multiple jobs, mid-year changes, pension scheme rules and payroll software. For decisions that matter — large pension contributions, leaving a job, disputing a payslip — talk to a qualified accountant or regulated adviser.

Corrections

Spot a rate that's wrong or out of date? Please tell us via the contact page — accuracy is the whole point of the site.

Contact

Contact

Corrections, rate updates and suggestions for new calculators are all welcome.

Email: hello@ukpaycalculator.example

Please don't send payslips, NI numbers or other personal documents — we can't check individual tax affairs, and HMRC or your payroll team are the right route for those. For rate corrections, a link to the published source helps us fix things fast.

This address is a placeholder until the site's own domain email is connected.

Privacy

Privacy policy

The short version

This calculator runs entirely in your browser. The salary, pension and loan figures you type are never sent to a server, stored in cookies, or written to any database — close the tab and they're gone.

What we collect

Nothing about your calculations. If standard, privacy-respecting analytics or advertising (such as Google AdSense) are added when the site moves to its own domain, this policy will be updated first to name them, what they set, and how to opt out, and any non-essential cookies will only run after consent where required.

Your rights

Because we hold no personal data from the calculators, there's nothing to request, correct or delete. If you email us, we keep that email only to reply and delete it on request.

Last updated: October 2026.