Take Home Pay Calculator
Calculate your take-home pay based on gross salary, student loan plan, and pension contributions.
Gross Salary Details
Enter gross salary details to calculate take home pay
Stay ahead of HMRC changes
Get 2027/28 rate updates and new calculators. No spam. Unsubscribe anytime.
Important Disclaimer
This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.
Overview
Your take-home pay is what remains of your gross salary after income tax, employee National Insurance, pension contributions and any student loan repayments. For 2026/27 the personal allowance stays frozen at £12,570 — as it has been since 2021 and will be until 2028 — which means fiscal drag quietly pulls more of every pay rise into tax. Employee NI is charged at 8% between £12,570 and £50,270 and 2% above that, unchanged from 2025/26. The calculator applies all of these in the right order, including the personal allowance taper above £100,000 and every student loan plan, so the figure you see is the amount that should actually land in your bank account each month.
Worked Example (2026/27)
### Worked Example: £35,000 Salary in 2026/27
**Inputs**: £35,000 gross salary, no pension contributions, no student loan.
**Income tax**: 1. Personal allowance: the first £12,570 is tax-free 2. Taxable income: £35,000 − £12,570 = £22,430 3. Basic rate: £22,430 × 20% = £4,486
**Employee National Insurance**: 1. NI-able earnings: £35,000 − £12,570 (Primary Threshold) = £22,430 2. Main rate: £22,430 × 8% = £1,794
**Result**: £35,000 − £4,486 − £1,794 = **£28,720 take-home per year**, or about **£2,393 per month**. Adding a 5% salary-sacrifice pension contribution (£1,750) would cut both the tax and NI bills and costs far less than £1,750 in net pay.
2026/27 Rates & Thresholds
| Band / Deduction | 2026/27 Rate | Applies to |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 (frozen until 2028) |
| Basic rate income tax | 20% | £12,571 – £50,270 |
| Higher rate income tax | 40% | £50,271 – £125,140 |
| Additional rate income tax | 45% | Above £125,140 |
| Personal allowance taper | −£1 PA per £2 | Income above £100,000 (PA gone at £125,140) |
| Employee NI — main rate | 8% | £12,570 – £50,270 |
| Employee NI — upper rate | 2% | Above £50,270 |
Student Loan Thresholds 2026/27
Student loan repayments are deducted through PAYE once income passes your plan's threshold, and more than one plan can run at the same time.
| Plan | Threshold | Rate | Who it applies to |
|---|---|---|---|
| Plan 1 | £22,015 | 9% | Pre-2012 English/Welsh; Scottish and NI pre-2021 |
| Plan 2 | £27,295 | 9% | Post-2012 English/Welsh |
| Plan 4 | £27,660 | 9% | Scottish students (2021 onwards) |
| Plan 5 | £25,000 | 9% | English students from 2023 entry |
| Postgraduate | £21,000 | 6% | Masters / doctoral loans |
How Pension Contributions Change the Numbers
Pension contributions made by salary sacrifice reduce your pay *before* tax and NI are calculated, so you save income tax **and** 8% employee NI on the sacrificed amount — and your employer saves 15% employer NI too. Relief-at-source contributions (the common workplace default) only reduce your tax bill, not your NI. If your income sits just above £50,270 or £100,000, a pension contribution that pulls you back under the threshold is one of the most tax-efficient moves available.
Common Mistakes HMRC Penalises
- Forgetting the personal allowance taper — between £100,000 and £125,140 the effective marginal tax rate is 60% because £1 of allowance is lost for every £2 earned.
- Assuming a pay rise is worth its headline amount — with frozen thresholds, more of it falls into higher bands each year.
- Confusing salary-sacrifice pensions (save tax and NI) with relief-at-source pensions (save tax only).
- Ignoring student loan repayments when comparing job offers — 9% above the threshold materially changes take-home pay.
- Using employer-cost figures (which include 15% employer NI) as if they were gross salary.
When to Seek Professional Advice
Speak to an accountant if your income mixes salary with dividends or self-employment, if you're close to the £100,000 taper or £50,270 higher-rate threshold and want to plan pension contributions, or if you have multiple student loan plans and irregular income. PAYE codes also go wrong more often than people expect — if your tax code isn't 1257L and you don't know why, check it before assuming the calculator is wrong.
Frequently Asked Questions
How is take home pay calculated in the UK for 2026/27?+
Your take home pay is your gross salary minus income tax, employee National Insurance contributions, pension contributions, and any student loan repayments. For 2026/27 the personal allowance is frozen at £12,570, basic rate is 20% up to £50,270, and employee NI is 8% between £12,570 and £50,270 and 2% above that.
What is the personal allowance for 2026/27?+
The personal allowance remains frozen at £12,570 for 2026/27. If your income exceeds £100,000 the allowance is tapered by £1 for every £2 earned above that threshold, reducing to nil at £125,140 — which creates a 60% effective marginal rate in that band.
What are the employee National Insurance rates for 2026/27?+
Employee NI is charged at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), and at 2% on all earnings above £50,270. There is no NI on earnings below £12,570.
How do student loan repayments affect my take home pay?+
Student loan repayments are deducted from gross pay once your income exceeds the threshold for your plan. Plan 2 deducts 9% above £27,295, Plan 5 deducts 9% above £25,000, and Postgraduate loans deduct 6% above £21,000. Multiple plans can run concurrently.
Does pension salary sacrifice reduce my income tax and NI?+
Yes. Pension contributions made via salary sacrifice reduce your pay before tax and NI are calculated, meaning you pay less income tax and less employee NI on the sacrificed amount. This is different from relief-at-source pension contributions, which only reduce your tax bill.
Related Reading
Why Trust Reckonly?
- ICO Registered (ZC013807)
- Updated for 2026/27
- Privacy First