UK Take-Home Pay Calculator
Your UK salary after income tax, National Insurance, pension and student loan, 2026/27.
Good to know. Between £100,000 and £125,140 the allowance melts away, so each extra pound is taxed at 60%.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
Income tax is charged on pay above your personal allowance (£12,570), in bands: 20%, then 40% above £50,270, then 45% above £125,140 (Scotland has six bands). National Insurance is 8% of pay between £12,570 and £50,270 and 2% above. A student loan takes 9% of pay above your plan’s threshold (6% for a postgraduate loan).
The formula
Income tax = Σ band rate × taxable pay in that band NI = 8% × (pay between £12,570 and £50,270) + 2% × (pay above £50,270) Take-home = pay − income tax − NI − student loan − pension
Worked example
On a 40,000 salary in England, 27,430 is above the personal allowance: 5,486 of income tax at 20% and 2,194.40 of National Insurance at 8%. That leaves 32,319.60 a year, or 2,693.30 a month.
Sources
- GOV.UK, Income Tax rates and Personal Allowances
- GOV.UK, Scottish Income Tax
- GOV.UK, National Insurance rates and categories
- GOV.UK, Repaying your student loan: what you pay
- House of Commons Library CBP-10618, Direct taxes: rates and allowances for 2026/27
Sources checked September 29, 2026. 10 automated tests check its answers on every change.
About the UK take-home pay calculator
Take-home pay in the UK is your salary minus income tax, National Insurance (NI), your workplace pension and any student loan repayment. All of them come out through PAYE before you are paid.
Income tax starts above the personal allowance of £12,570. In England, Wales and Northern Ireland, the next £37,700 is taxed at 20%, pay above £50,270 at 40% and pay above £125,140 at 45%. Scotland has its own six bands in 2026/27, from a 19% starter rate to 48% at the top. Above £100,000 the allowance shrinks by £1 for every £2 you earn, which makes the tax on each extra pound between £100,000 and £125,140 effectively 60%.
National Insurance is 8% of what you earn between £12,570 and £50,270 a year, and 2% above that. It is the same across the UK.
How your pension is paid changes the result. Salary sacrifice lowers your salary, so you save income tax and NI. Net pay comes out before income tax only. Relief at source comes out of your take-home pay, with the basic-rate tax added by the pension provider, so you pay 80% of the contribution; higher-rate payers can claim more back. Student loans take 9% of pay above your plan’s threshold, or 6% for a postgraduate loan. The result assumes the standard 1257L tax code.
Questions people ask
How much is £40,000 after tax?
In England, Wales or Northern Ireland in 2026/27, with no pension or student loan, about £32,320 a year, or £2,693 a month.
Why is tax 60% between £100,000 and £125,140?
The personal allowance falls by £1 for every £2 over £100,000. Each extra £1 is taxed at 40% and also moves 50p of allowance into tax, so the rate is effectively 60%. Pension contributions can bring your income back under £100,000.
Is salary sacrifice better than relief at source?
Usually, because it saves National Insurance as well as income tax. It lowers your official salary, which can affect things like mortgage applications and some benefits.
When do I start repaying my student loan?
When your pay is above your plan’s threshold: £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) or £21,000 (postgraduate) a year in 2026/27.