How to Calculate Your Take-Home Pay in the UK (2026/27)

Take-home pay — also called net pay — is what lands in your bank account after income tax, National Insurance, and any other deductions. For the 2026/27 tax year (6 April 2026 – 5 April 2027) the personal allowance remains £12,570 and employee NI remains 8% / 2% — both unchanged from 2025/26 because of the freeze extended to April 2031 in Autumn Budget 2024 (HMRC).

A £30,000 salary gives a take-home of £25,120 a year (£2,093 a month) before pension contributions or student loan deductions. This guide explains every line on the calculation and walks through worked examples from £20,000 to £150,000.

Quick summary

• Personal allowance: £12,570 tax-free for 2026/27 (frozen until April 2031)
• Income tax rates: 20% (basic), 40% (higher), 45% (additional)
• Employee National Insurance: 8% from £12,570 to £50,270, then 2% above
• Average deductions: roughly 19–25% for most earners
• Student loan thresholds: updated 6 April 2026 (Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795)

Understanding UK salary deductions

The gross salary is reduced by several deductions before net pay is paid.

1. Income tax

Charged on earnings above the personal allowance (£12,570):

Tax bands 2026/27 (England, Wales, NI):

• Personal allowance: £0 – £12,570 (0%)
• Basic rate: £12,571 – £50,270 (20%)
• Higher rate: £50,271 – £125,140 (40%)
• Additional rate: £125,140+ (45%)

The 60% trap: between £100,000 and £125,140 the personal allowance reduces by £1 for every £2 earned, creating an effective 60% marginal rate on that slice.

2. National Insurance Contributions (NICs)

Employee NICs for 2026/27 (HMRC):

• £0 – £12,570: 0%
• £12,571 – £50,270: 8%
• £50,270+: 2%

The 8% main rate has held since the January 2024 cut from 10%, and there have been no changes for 2026/27.

3. Student loan repayments

Thresholds updated 6 April 2026 (Student Loans Company):

• Plan 1: 9% on earnings above £26,900
• Plan 2: 9% on earnings above £29,385
• Plan 4: 9% on earnings above £33,795
• Plan 5: 9% on earnings above £25,000
• Postgraduate: 6% on earnings above £21,000

4. Pension contributions

Workplace pensions are typically deducted before tax (salary sacrifice or relief at source):

• Typical contribution: 5% employee + 3% employer
• Higher contributions reduce both income tax and NI

5. Other deductions

• Childcare vouchers
• Give As You Earn (payroll charity donations)
• Union subscriptions
• Private healthcare premiums

Real salary examples: take-home pay 2026/27

Numbers below use the 2026/27 thresholds and assume no student loan, no pension, and no salary sacrifice.

Salary: £20,000

• Income tax: £1,486
• National Insurance: £594
• Total deductions: £2,080
• Take-home: £17,920/year (£1,493/month)
• Effective rate: 10.4%

Salary: £25,000

• Income tax: £2,486
• National Insurance: £994
• Total deductions: £3,480
• Take-home: £21,520/year (£1,793/month)
• Effective rate: 13.9%

Salary: £30,000

• Income tax: £3,486
• National Insurance: £1,394
• Total deductions: £4,880
• Take-home: £25,120/year (£2,093/month)
• Effective rate: 16.3%

Salary: £35,000

• Income tax: £4,486
• National Insurance: £1,794
• Total deductions: £6,280
• Take-home: £28,720/year (£2,393/month)
• Effective rate: 17.9%

Salary: £40,000

• Income tax: £5,486
• National Insurance: £2,194
• Total deductions: £7,680
• Take-home: £32,320/year (£2,693/month)
• Effective rate: 19.2%

Salary: £50,000

• Income tax: £7,486
• National Insurance: £2,994
• Total deductions: £10,480
• Take-home: £39,520/year (£3,293/month)
• Effective rate: 21.0%

Salary: £60,000

• Income tax: £11,432
• National Insurance: £3,211
• Total deductions: £14,643
• Take-home: £45,357/year (£3,780/month)
• Effective rate: 24.4%

Salary: £75,000

• Income tax: £17,432
• National Insurance: £3,511
• Total deductions: £20,943
• Take-home: £54,057/year (£4,505/month)
• Effective rate: 27.9%

Salary: £100,000 (60% trap begins above this)

• Income tax: £27,432
• National Insurance: £4,011
• Total deductions: £31,443
• Take-home: £68,557/year (£5,713/month)
• Effective rate: 31.4%

Salary: £150,000

• Income tax: £48,675
• National Insurance: £5,011
• Total deductions: £53,686
• Take-home: £96,314/year (£8,026/month)
• Effective rate: 35.8%

Calculate Your Take-Home Pay →

How to calculate your take-home pay

Step 1: Calculate taxable income

Gross salary minus personal allowance:

• Gross salary: £35,000
• Personal allowance: –£12,570
• Taxable income: £22,430

Step 2: Calculate income tax

Apply the band rates to taxable income:

• £22,430 × 20% = £4,486 income tax

Step 3: Calculate National Insurance

Apply NI rates to earnings above the primary threshold:

• Earnings above £12,570: £22,430
• £22,430 × 8% = £1,794 National Insurance

Step 4: Calculate net pay

Subtract deductions from gross:

• Gross: £35,000
• Income tax: –£4,486
• National Insurance: –£1,794
• Net pay: £28,720 (£2,393/month)

The 60% tax trap explained

Between £100,000 and £125,140, the effective marginal rate is 60% because the personal allowance tapers away.

Why?

• The personal allowance reduces by £1 for every £2 earned above £100,000
• That £1 of lost allowance becomes taxable at 40%
• Combined with the 40% on the £2 of new earnings, the marginal rate on that slice is 60%

Example: £110,000 salary

• Personal allowance remaining: £7,570 (£12,570 – £5,000 taper)
• Income tax: £33,432 (taxable income of £102,430 across the 20% and 40% bands)
• NI: £4,211
• Take-home: £72,357 (34.2% effective overall)
• Marginal rate on the £100k–£110k slice: 60% (£6,000 more tax for £10,000 more gross income vs the £100,000 baseline)

Ways to step out of the zone (factual, not advice):

• Pension contributions
• Salary sacrifice schemes
• Timing of bonuses across tax years

Impact of pension contributions

Pensions improve take-home through tax relief — the headline cost drops because both tax and NI relief apply (under salary-sacrifice arrangements).

£40,000 salary with 5% salary sacrifice

Without sacrifice:

• Gross: £40,000
• Tax: £5,486
• NI: £2,194
• Take-home: £32,320

With £2,000 sacrifice:

• Gross after sacrifice: £38,000
• Tax: £5,086 (saves £400)
• NI: £2,034 (saves £160)
• Take-home: £30,880
• Pension pot gain: £2,000
• Net cost of the £2,000 contribution: £1,440

£60,000 salary with £6,000 salary sacrifice (10%)

• Tax saved: £2,400 (40% on the sacrificed amount)
• NI saved: £120 (2% — the sacrificed slice sits above the UEL)
• Net cost: £3,480
• Pension pot gain: £6,000
• Effective discount: about 42%

For someone close to the 60% trap, sacrifice into pension at the £100,000–£125,140 band can recover the £1-for-£2 allowance taper as well, lifting effective relief above 50%.

Student loan impact on take-home

Student loans deduct a percentage of earnings above each plan's threshold.

£35,000 with Plan 2 loan (2026/27)

Without student loan:

• Take-home: £28,720/year

With Plan 2 loan:

• Threshold: £29,385
• Repayment: (£35,000 – £29,385) × 9% = £505/year
• Take-home: £28,215/year (£2,351/month)

The 2026/27 Plan 2 threshold rise (from £28,470) reduces the deduction by £83/year on a £35,000 salary compared with 2025/26.

£50,000 with Plan 2 + Postgraduate loans

Plan 2 repayment:

• (£50,000 – £29,385) × 9% = £1,855/year

Postgraduate repayment:

• (£50,000 – £21,000) × 6% = £1,740/year

Total student loan: £3,595/year (£300/month) Take-home after loans: £35,925/year (£2,994/month)

Using our take-home pay calculator

Skip the manual calculations:

1. Enter your annual gross salary
2. Select your location (England/Wales/NI or Scotland)
3. Add pension contributions if any
4. Include student loan plan if applicable
5. See the breakdown:
   • Monthly take-home
   • Annual take-home
   • All deductions
   • Effective tax rate

Calculate Your Take-Home Pay →

Regional differences: Scotland

Scotland sets its own income tax bands. National Insurance is UK-wide and unchanged.

Scottish tax bands 2026/27

• Personal allowance: £0 – £12,570 (0%)
• Starter rate: £12,571 – £16,537 (19%)
• Basic rate: £16,538 – £29,526 (20%)
• Intermediate rate: £29,527 – £43,662 (21%)
• Higher rate: £43,663 – £75,000 (42%)
• Advanced rate: £75,001 – £125,140 (45%)
• Top rate: £125,140+ (48%)

Crossover point: Scottish earners pay more income tax than England/Wales/NI above roughly £30,000 in 2026/27.

£40,000 comparison

Region	Income tax	NI	Take-home	Monthly
England/Wales/NI	£5,486	£2,194	£32,320	£2,693
Scotland	£5,551	£2,194	£32,255	£2,688

Scotland pays £65 more — much narrower than the 2025/26 gap because the Scottish starter and basic band ceilings rose in April 2026.

£60,000 comparison

Region	Income tax	NI	Take-home	Monthly
England/Wales/NI	£11,432	£3,211	£45,357	£3,780
Scotland	£13,182	£3,211	£43,607	£3,634

Scotland pays £1,750 more.

Comparing job offers

When comparing salaries, compare take-home not gross:

Job A: £45,000 + 5% pension match

• Take-home: ~£35,000
• Total pension annual: £2,250 (you) + £2,250 (employer) = £4,500
• Total package: £39,500

Job B: £48,000 + 3% pension

• Take-home: ~£37,200
• Total pension annual: £1,440 (you) + £1,440 (employer) = £2,880
• Total package: £40,080

Job B is £580 better despite the headline gross only being £3,000 higher and the pension being less generous — because more of that extra £3,000 lands as take-home cash rather than as a tax-and-NI-mediated pension contribution.

Other factors to weigh:

• Bonus structure and reliability
• Location (Scotland pays more income tax above ~£30k)
• Benefits (healthcare, car allowance, equity)
• Working-pattern flexibility (affects unpaid time off)

Practical levers on take-home pay

These are factual descriptions of how the rules interact with common employer arrangements. Pension contributions and salary sacrifice change long-term income outcomes — a financial adviser is the right person to map those to your circumstances.

1. Salary sacrifice schemes

Approved sacrifice arrangements reduce both income tax and NI:

• Childcare vouchers
• Cycle to Work
• Electric car schemes
• Workplace tech schemes

2. Pension contributions

Every £100 contributed to a salary-sacrifice pension costs roughly:

• £60 (higher-rate taxpayer) in net pay
• £68 (basic-rate taxpayer) in net pay
• £40–£55 (in the 60% trap) in net pay

3. Tax code check

• 1257L is the standard tax code for 2026/27
• A wrong code can mean overpaying tax for months
• The tax code is on every payslip
• Wrong codes are amended through HMRC's online service or by the employer

4. Allowable expenses

For employees not reimbursed by the employer:

• Working from home: £6/week tax-relief allowance (£312/year, no receipts required)
• Professional subscriptions on HMRC's approved list
• Uniform cleaning (set-rate allowances by industry)
• Mileage at 45p/mile for the first 10,000 miles, 25p/mile thereafter

5. Marriage allowance

A spouse earning under £12,570 can transfer £1,260 of personal allowance to a basic-rate-taxpayer partner, saving the household £252/year. Claims can be backdated four tax years through GOV.UK.

Frequently asked questions

How much tax do I pay on £30,000?

£3,486 income tax and £1,394 National Insurance, totalling £4,880 (16.3%). Take-home is £25,120 a year or £2,093 a month.

Why is my take-home less than expected?

Check the tax code on your payslip, plus any pension contributions, student loan deductions, salary-sacrifice arrangements, and other voluntary deductions. The tax code is the most common cause of unexpectedly low take-home.

Is National Insurance a tax?

Technically NI funds the state pension, NHS, and benefits — but functionally it's a tax on earnings above £12,570. It's collected through PAYE alongside income tax.

How much is £40k take-home?

£40,000 gives £32,320 take-home (£2,693/month) after tax and NI, assuming no other deductions. That's an effective rate of 19.2%.

Can I get a tax refund?

Yes, if tax has been overpaid due to a wrong tax code, mid-year job changes, or unused allowances. Refunds can be claimed via HMRC's online service.

What's the 60% tax trap?

Between £100,000 and £125,140 the personal allowance reduces by £1 for every £2 earned, creating a 60% effective marginal rate on that slice of income. Pension contributions or salary sacrifice that brings taxable income below £100,000 sidesteps the trap.

How does student loan affect take-home?

Plan 2 deducts 9% on earnings above £29,385 for 2026/27. On £35,000 that's £505/year (£42/month). Other plans have different thresholds. Multiple loans (e.g. Plan 2 + PG) stack and can deduct up to 15% of earnings above the relevant thresholds.

Does pension contribution reduce tax?

Yes. Salary-sacrifice pensions reduce both income tax and NI. A £100 pension contribution typically costs £60–£68 in lost take-home depending on the marginal tax rate.

Related resources

• UK Tax Bands 2026/27 — detailed band breakdown
• National Insurance 2025/26 Guide — NI rates explained (employer changes also covered)
• Student Loan 2025/26 Guide — all five plans
• Mortgage Affordability — how much you can borrow

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Official sources:

• HMRC: Income Tax rates
• HMRC: National Insurance rates
• Student Loans Company: Repayment thresholds
• HMRC: Autumn Budget 2024 — personal allowance freeze extension

Last updated: 24 June 2026. Reflects 2026/27 income tax and NI thresholds (frozen at 2025/26 levels) for England/Wales/NI, updated Scottish bands effective 6 April 2026, and updated student loan repayment thresholds effective 6 April 2026.

Disclaimer: Calculations are estimates based on standard 2026/27 UK tax rules and assume no salary-sacrifice, no pension, and no student loan unless explicitly stated in the example. Actual take-home varies with tax code, pension scheme, region, and other deductions. UK Calculator provides information and calculation tools and is not a financial or tax adviser.