Tax

Take-Home Pay Calculator UK 2026 — Salary After Tax

Calculate your take-home pay after tax, National Insurance, student loan, and pension deductions. See exactly what you'll receive each month.

· 4 min read

Understanding your take-home pay helps you budget effectively. Here’s how to calculate what you’ll actually receive after all deductions.

Take-Home Pay Quick Reference

Common Salaries — Monthly Take-Home (2026/27)

Gross Salary Monthly Gross Tax NI Take-Home/Month Take-Home/Year
£25,000 £2,083 £207 £83 £1,793 £21,516
£30,000 £2,500 £290 £117 £2,093 £25,116
£35,000 £2,917 £373 £150 £2,394 £28,728
£40,000 £3,333 £457 £183 £2,693 £32,316
£50,000 £4,167 £623 £250 £3,294 £39,528
£60,000 £5,000 £957 £283 £3,760 £45,120
£75,000 £6,250 £1,457 £333 £4,460 £53,520
£100,000 £8,333 £2,460 £383 £5,490 £65,880

Based on 2026/27 tax rates. Excludes pension and student loan.

How Take-Home Pay Is Calculated

Deduction Order

Step Deduction What It Is
1 Pension Usually deducted before tax
2 Income Tax On remaining after pension
3 National Insurance On earnings above threshold
4 Student Loan If applicable
5 Other deductions Cycle to work, childcare vouchers

Income Tax Rates 2026/27

Tax Bands

Band Income Range Tax Rate
Personal Allowance £0 - £12,570 0%
Basic Rate £12,571 - £50,270 20%
Higher Rate £50,271 - £125,140 40%
Additional Rate Over £125,140 45%

Personal Allowance Reduction

Income Personal Allowance Effect
Under £100,000 £12,570 Full allowance
£100,000 - £125,140 Reduces by £1 per £2 Gradual loss
Over £125,140 £0 No allowance

£100k-£125k earners face an effective 60% tax rate on this portion.

Tax Calculation Example: £45,000 Salary

Calculation Amount Tax
First £12,570 Tax-free £0
£12,571 to £45,000 £32,430 at 20% £6,486
Total Tax £6,486

National Insurance Rates 2026/27

Employee NI

Earnings NI Rate
Below £12,570 0%
£12,570 - £50,270 8%
Above £50,270 2%

NI Calculation Example: £45,000 Salary

Calculation Amount NI
First £12,570 Below threshold £0
£12,571 to £45,000 £32,430 at 8% £2,594
Total NI £2,594

Student Loan Deductions

Repayment Thresholds

Plan Threshold Rate When
Plan 1 £24,990 9% Started before Sept 2012
Plan 2 £27,295 9% Started Sept 2012 onwards
Plan 4 £27,660 9% Scottish students
Plan 5 £25,000 9% Started Sept 2023 onwards
Postgrad £21,000 6% Postgraduate loan

Student Loan Example: £35,000 Salary, Plan 2

Calculation Amount
Salary £35,000
Threshold £27,295
Amount over threshold £7,705
Repayment (9%) £693/year (£58/month)

Pension Contributions

How Pension Affects Take-Home

Without Pension With 5% Pension
£40,000 salary £40,000 salary
Tax on £40,000 Tax on £38,000
Full NI Slightly less NI
Higher take-home Lower take-home
No pension saving £2,000 + employer match saved

Pension Tax Relief Value

Tax Rate You Contribute Tax Saved Real Cost
Basic (20%) £100 £20 £80
Higher (40%) £100 £40 £60
Additional (45%) £100 £45 £55

Higher earners get more tax relief per pound contributed.

Salary Sacrifice

Feature Benefit
Pension taken before tax AND NI Save both
Reduces taxable income Lower tax bill
Reduces NI contributions Both you and employer
Employer may share NI saving Extra pension contribution

Complete Take-Home Examples

Example 1: £35,000 Salary, No Deductions

Item Annual Monthly
Gross salary £35,000 £2,917
Income tax -£4,486 -£374
National Insurance -£1,794 -£150
Take-home £28,720 £2,393

Example 2: £35,000 Salary, 5% Pension, Plan 2 Student Loan

Item Annual Monthly
Gross salary £35,000 £2,917
Pension (5%) -£1,750 -£146
Taxable income £33,250 —
Income tax -£4,136 -£345
National Insurance -£1,654 -£138
Student loan -£693 -£58
Take-home £26,767 £2,231

Example 3: £60,000 Salary, 8% Pension

Item Annual Monthly
Gross salary £60,000 £5,000
Pension (8%) -£4,800 -£400
Taxable income £55,200 —
Income tax (basic) -£7,540 -£628
Income tax (higher) -£1,972 -£164
National Insurance -£3,196 -£266
Take-home £42,492 £3,541

Marginal Tax Rates

Understanding Your Marginal Rate

Income Level Marginal Rate What It Means
Up to £12,570 0% Keep 100% of extra earnings
£12,571 - £50,270 28% Keep 72% (20% tax + 8% NI)
£50,271 - £100,000 42% Keep 58% (40% tax + 2% NI)
£100,000 - £125,140 62% Keep 38% (60% tax + 2% NI)
Above £125,140 47% Keep 53% (45% tax + 2% NI)

Pay Rise Impact

Current Salary Pay Rise Extra Tax/NI Extra Take-Home
£30,000 £5,000 28% = £1,400 £3,600
£45,000 £5,000 28% = £1,400 £3,600
£48,000 £5,000 Mixed ~£3,200
£55,000 £5,000 42% = £2,100 £2,900
£100,000 £5,000 62% = £3,100 £1,900

Optimising Take-Home Pay

Strategy How It Works Saving
Salary sacrifice pension Reduces taxable income NI + tax saved
Cycle to work Pre-tax deduction Tax + NI on amount
Childcare vouchers If grandfathered in Tax + NI saved
Marriage allowance Transfer unused allowance Up to £252/year
Tax-efficient benefits Electric car, etc. Lower BIK

£100k+ Earners: Special Strategies

Strategy Benefit
Pension contributions Restore personal allowance
Charitable giving Gift Aid extends basic rate band
Timing of bonuses Manage when income is received

Scottish Income Tax

Scottish Rates 2026/27

Band Income Range Rate
Personal Allowance £0 - £12,570 0%
Starter £12,571 - £14,876 19%
Basic £14,877 - £26,561 20%
Intermediate £26,562 - £43,662 21%
Higher £43,663 - £75,000 42%
Advanced £75,001 - £125,140 45%
Top Over £125,140 48%

Scottish taxpayers generally pay slightly more tax.

Key Takeaways

  1. Know your marginal rate — understand what you keep from extra earnings
  2. Pension contributions — reduce tax and NI, especially via salary sacrifice
  3. Student loan — factor into budget if applicable
  4. £100k trap — 62% marginal rate makes pension contributions very valuable
  5. Check your tax code — errors are common

For related tools, see our salary sacrifice calculator and income tax calculator.