What is your salary actually worth?
Income tax, national insurance, pension and student loan, worked out properly for the 2026/27 tax year. Nothing to sign up for.
Add a pension or student loan
Salary sacrifice also saves national insurance, so it leaves you slightly better off for the same contribution.
Most students who started in England from 2023 are on Plan 5.
Rates are 2026/27 for England, Wales and Northern Ireland. Scotland sets its own income tax rates and bands, so a Scottish taxpayer's income tax will differ. National insurance and student loan repayments are the same UK wide.
It assumes one job, the standard tax code, and no taxable benefits, bonuses, salary above the pension annual allowance, or other income. Your payslip can differ if your tax code is adjusted, you are paid irregularly, or you have benefits in kind.
Also free: work out dividend tax on the new 2026/27 rates if you take dividends from your own company, or check whether AI knows your business exists. All our free tools.
Where each slice of your salary goes.
The headline rate never applies to your whole salary. Each band only taxes the part of your pay that falls inside it.
Personal allowance. No income tax below this.
On the next £37,700, up to £50,270.
From £50,270 up to £125,140.
8% to £50,270, then 2% above it.
Tax, pensions and your payslip.
How is take-home pay calculated in the UK?
Your employer takes income tax and national insurance off your gross pay before you receive it, along with any pension contribution and student loan repayment. Income tax is charged only on earnings above your personal allowance, and national insurance only on earnings above the primary threshold, so the headline rates never apply to your whole salary.
How much tax will I pay on my salary in 2026/27?
The first £12,570 is usually tax free. The next £37,700 is taxed at 20 per cent, earnings above that are taxed at 40 per cent up to £125,140, and anything above £125,140 is taxed at 45 per cent. National insurance is charged separately at 8 per cent between £12,570 and £50,270, then 2 per cent above that.
Why does my take-home pay drop sharply over £100,000?
Your personal allowance falls by £1 for every £2 you earn above £100,000, so a slice of income that was tax free becomes taxable at the same time as the income itself is taxed. Between £100,000 and £125,140 that creates an effective rate of around 60 per cent, which is higher than the rate above it.
Does a workplace pension reduce my tax?
Yes. A pension contribution taken from your pay before tax reduces the income you are taxed on, so you keep more of it than the contribution costs you. Salary sacrifice goes further and reduces your national insurance as well, which is why the two options give different take-home figures in this calculator.
Does this calculator work in Scotland?
Not exactly. It uses income tax rates for England, Wales and Northern Ireland. Scotland sets its own income tax rates and bands, so a Scottish taxpayer will pay a different amount of income tax on the same salary. National insurance and student loan repayments are the same across the UK.
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