Calculate your UK take-home pay after income tax, National Insurance, pension, and student loan deductions.
This calculator provides estimates for guidance only. It does not constitute financial or tax advice. Tax rates, NI thresholds, and student loan thresholds may change. Always verify with HMRC or a qualified tax adviser before making financial decisions.
Knowing your take-home pay is one of the most important aspects of personal finance. Your gross salary -- the headline figure on your contract -- is not what lands in your bank account each month. After income tax, National Insurance contributions (NICs), pension deductions, and potentially student loan repayments, the actual amount you receive can be significantly lower. For the 2026-27 tax year, the UK salary landscape includes the GBP 12,570 Personal Allowance for income tax, Class 1 National Insurance at 8% on earnings between GBP 12,570 and GBP 50,270 (with 2% above that threshold), and various student loan repayment plans with different thresholds and rates. If your employer offers a workplace pension with salary sacrifice, your pension contributions reduce your gross pay before tax, providing additional tax relief. This calculator brings all of these deductions together in one place, giving you a clear picture of your annual and monthly take-home pay. Whether you are evaluating a job offer, planning a budget, or considering the impact of a pay rise, understanding the full deduction picture is essential.
To calculate your take-home pay: 1. Enter your annual gross salary -- this is the total salary stated in your employment contract before any deductions. 2. Select your tax region. Choose "England & Wales" if you live in England, Wales, or Northern Ireland. Choose "Scotland" if you are a Scottish taxpayer, as Scotland has its own income tax rates. 3. For more detailed results, expand the advanced options. Enter your pension contribution as a percentage of gross salary. This calculator assumes salary sacrifice, which reduces your taxable income and also reduces your National Insurance liability. 4. If you have a student loan, select your repayment plan from the advanced options. The calculator supports Plan 1 (pre-2012 loans), Plan 2 (post-2012 England/Wales), Plan 4 (Scottish loans), Plan 5 (post-2023 loans), and Postgraduate loans. Each plan has a different repayment threshold and rate. 5. View your results, which show your annual take-home pay, income tax, National Insurance, pension deduction, student loan repayment, and your effective deduction rate. The band breakdown shows how your income tax is distributed across each tax band.
The salary calculator performs several sequential calculations to arrive at your net pay: First, pension contributions are deducted from gross salary (assuming salary sacrifice). This reduces the income figure used for both income tax and National Insurance calculations, making salary sacrifice the most tax-efficient pension contribution method. Next, income tax is calculated on the post-pension income using the progressive band system. The GBP 12,570 Personal Allowance is deducted, and the remaining taxable income is split across the basic (20%), higher (40%), and additional (45%) bands for England and Wales, or the six Scottish bands. National Insurance is then calculated on the post-pension income. For 2026-27, employees pay 8% on earnings between the primary threshold (GBP 12,570) and the upper earnings limit (GBP 50,270), and 2% on earnings above GBP 50,270. Student loan repayments are calculated as a percentage of income above the plan-specific threshold. For example, Plan 2 charges 9% on income above its threshold. Postgraduate loans charge 6% above their threshold. If you have both an undergraduate and postgraduate loan, both repayments apply simultaneously. The final take-home pay is: gross salary minus pension, minus income tax, minus National Insurance, minus student loan repayments. The effective deduction rate shows the total of all deductions as a percentage of your gross salary.
This calculator uses 2026-27 tax year rates and thresholds. It assumes a standard employment arrangement with PAYE. Self-employed individuals have different National Insurance rates and should use a dedicated self-employment calculator. Employer NI contributions are not shown as they do not affect your take-home pay directly. Always verify figures with HMRC or a qualified accountant.