Calculate your take-home pay after PAYE income tax, National Insurance, pension, and student loan deductions for the 2026-27 tax year.
This calculator provides estimates for guidance only. It does not constitute financial or tax advice. Tax rates and thresholds may change. Always verify with HMRC or a qualified tax adviser.
PAYE (Pay As You Earn) is the system used by HMRC to collect income tax and National Insurance contributions from employed workers in the UK. Rather than paying tax in a lump sum at the end of the year, your employer deducts it from your wages before you receive your pay. This means the amount that lands in your bank account each month is already net of tax. Understanding your PAYE deductions is essential for budgeting, evaluating job offers, and planning your finances. For the 2026-27 tax year, the Personal Allowance remains at GBP 12,570, with basic rate tax at 20% on earnings up to GBP 50,270, higher rate at 40% up to GBP 125,140, and additional rate at 45% above that. Employee National Insurance is charged at 8% on earnings between GBP 12,570 and GBP 50,270, and 2% above that threshold. This calculator brings together income tax, National Insurance, pension contributions, and student loan repayments to give you a complete picture of your monthly payslip. Whether you are checking your first payslip, considering a salary sacrifice pension arrangement, or reviewing whether your tax code is correct, this tool helps you understand exactly where your money goes.
To calculate your PAYE take-home pay: 1. Enter your annual gross salary -- the total salary stated in your employment contract before any deductions are applied. 2. Enter your tax code. This is shown on your payslip, P45, or P60. The standard code for 2026-27 is 1257L, which gives a Personal Allowance of GBP 12,570. If you have a different code (e.g. BR for a second job), enter it here. 3. If you contribute to a workplace pension through salary sacrifice, enter the percentage in the advanced options. Salary sacrifice reduces your taxable income, saving you tax and NI. 4. If you have a student loan, select your repayment plan. Plan 1 applies to loans taken out before September 2012 in England/Wales. Plan 2 applies to loans after September 2012. Plan 4 is for Scottish loans. Plan 5 is for loans after 2023. Postgraduate loans have a separate threshold and rate. 5. Review your results showing annual, monthly, and weekly take-home pay, along with a breakdown of each deduction. The pie chart shows the proportion of your salary going to each category.
The PAYE calculator performs these steps: First, your tax code is parsed to determine your Personal Allowance. The standard code 1257L provides GBP 12,570 of tax-free income. If your income exceeds GBP 100,000, the allowance is tapered -- reduced by GBP 1 for every GBP 2 over GBP 100,000, reaching zero at GBP 125,140. If you have a pension contribution via salary sacrifice, this is deducted from your gross salary first. The reduced figure becomes your taxable salary for both income tax and National Insurance. Income tax is then calculated using the 2026-27 progressive bands. The first GBP 12,570 is tax-free (assuming standard 1257L code). Earnings from GBP 12,571 to GBP 50,270 are taxed at 20%. Earnings from GBP 50,271 to GBP 125,140 are taxed at 40%. Anything above GBP 125,140 is taxed at 45%. National Insurance is calculated separately using the employee Class 1 rates: 8% on earnings between GBP 12,570 and GBP 50,270, and 2% on earnings above GBP 50,270. Student loan repayments are calculated on your gross salary (not adjusted for pension). Each plan has its own threshold: Plan 1 at GBP 24,990 (9%), Plan 2 at GBP 27,295 (9%), Plan 4 at GBP 31,395 (9%), Plan 5 at GBP 25,000 (9%), and Postgraduate at GBP 21,000 (6%). Your take-home pay is: gross salary minus pension, minus income tax, minus NI, minus student loan repayments.
Inputs: Annual salary: GBP 35,000, Tax code: 1257L, Pension: 0%, Student loan: None
Inputs: Annual salary: GBP 60,000, Tax code: 1257L, Pension: 0%, Student loan: Plan 2
Inputs: Annual salary: GBP 130,000, Tax code: 1257L, Pension: 0%, Student loan: None
This calculator uses 2026-27 tax year rates for England and Wales. Scottish taxpayers have different income tax rates (Starter, Basic, Intermediate, Higher, Advanced, and Top rates). Northern Ireland follows the England/Wales rates. Self-employed individuals pay different NI rates and should use a dedicated self-employment calculator. Employer NI contributions are not shown as they do not affect your take-home pay. Always check your tax code with HMRC if you believe it may be incorrect.