Take-Home Pay Calculator
Work out UK take-home pay after Income Tax and National Insurance for the 2026/27 tax year.
What this calculator does
Estimates your UK take-home pay after both Income Tax and National Insurance, the two main deductions from a standard employee salary, using current 2026/27 rates and thresholds.
Who this is for
UK employees checking a job offer's real take-home value, anyone budgeting around a specific salary, or people wanting to understand exactly where their gross pay goes each month.
How this calculator works
Uses 2026/27 rates: a £12,570 Personal Allowance, 20% basic rate to £50,270, 40% higher rate to £125,140, 45% above. National Insurance is 8% between £12,570 and £50,270, and 2% above that.
Worked example
A £35,000 salary: the first £12,570 is tax-free. Taxable income = £22,430, taxed at 20% = £4,486 Income Tax. National Insurance: £22,430 × 8% = £1,794.40. Total deductions = £6,280.40, leaving take-home pay of roughly £28,719.60 per year, or about £2,393/month.
The "60% Tax Trap" Between £100,000 and £125,140
This calculator doesn't model the Personal Allowance taper, but it's worth understanding if your salary sits anywhere near £100,000. Between £100,000 and £125,140, your £12,570 tax-free Personal Allowance is withdrawn at £1 for every £2 earned — combined with the 40% higher rate and 2% National Insurance already applying in this band, the effective marginal rate on income in this specific range works out to roughly 62%, well above the headline 40% or even 45% rates most people expect. A £1,000 pay rise landing in this band results in only about £380 of actual extra take-home pay once tax, NI, and the lost allowance are all accounted for. Pension salary sacrifice is commonly used specifically to keep income below £100,000 and avoid this band entirely.
Where your salary goes
Run the calculator above to see the Income Tax, National Insurance, and take-home split.
Common mistakes
- Forgetting the Personal Allowance taper. Above £100,000, your tax-free Personal Allowance reduces by £1 for every £2 earned, disappearing entirely at £125,140 — this calculator doesn't model that taper, so high earners should treat the estimate as approximate.
- Using England/Wales rates for Scotland. Scotland has its own Income Tax bands set by the Scottish Parliament, which differ from the rest of the UK.
- Not accounting for pension contributions. Salary sacrifice pension contributions reduce your taxable income before Income Tax and NI are calculated, which this simple estimate doesn't include.
- Confusing Income Tax and National Insurance as one deduction. They're calculated separately with different thresholds and rates, then both subtracted from gross pay — payslips itemize them individually for this reason.
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Frequently Asked Questions
What's the difference between Income Tax and National Insurance?
Income Tax funds general government spending. National Insurance funds specific benefits including the State Pension and NHS. Both are deducted from the same salary but calculated with different thresholds and rates, which is why payslips show them separately.
Why is my Personal Allowance different above £100,000?
The £12,570 Personal Allowance reduces by £1 for every £2 you earn above £100,000, reaching zero at £125,140 — creating an effective marginal tax-and-NI rate of roughly 62% in that income band, since you lose allowance, pay higher-rate tax, and pay NI simultaneously.
What is the 2026/27 Personal Allowance?
£12,570 — the amount you can earn tax-free before Income Tax applies. It reduces for incomes above £100,000 and disappears entirely at £125,140.
Does this work for Scotland?
No, this uses England/Wales/Northern Ireland rates. Scotland has separate Income Tax bands set by the Scottish Parliament, though National Insurance rates are the same UK-wide.
How much of a £1,000 raise do I actually keep between £100k-£125,140?
Only about £380, once 40% Income Tax, 2% National Insurance, and the lost Personal Allowance are all accounted for — a hand-verified example of the roughly 62% effective marginal rate in this specific band.
How can I avoid the 100k-125,140 tax trap?
Pension salary sacrifice is commonly used to bring taxable income back below £100,000, since sacrificed contributions reduce taxable income before the Personal Allowance taper is calculated.