Income Tax Calculator UK 2026/27 - Free Take Home Pay Calculator

Our income tax calculator helps you quickly answer "how much tax will I pay?" by calculating your take home pay after all deductions. This free PAYE calculator uses official HMRC tax calculator rates for 2026/27, showing exactly what you'll earn after income tax, National Insurance, and student loan repayments are deducted from your salary.

Whether you're looking for a salary calculator for 2026/27, need to calculate take home pay for a new job offer, or want to understand your tax position, our UK tax calculator provides instant, accurate results. Simply enter your annual salary and our HMRC paye calculator will show your monthly and annual take home salary.

The UK operates a progressive tax system with rates of 20% (basic), 40% (higher), and 45% (additional). Our take home pay calculator UK tool accounts for all these rates, plus National Insurance contributions, to give you the most accurate take home calculator results available online. Perfect for comparing job offers or planning your finances.

Who Should Use This Income Tax Calculator?

This calculator is designed for anyone who receives employment income in the UK. You might be evaluating a job offer and want to know your actual take-home salary, planning a career move, or simply checking that your employer is deducting the correct amount of tax from your monthly payslip. The calculator is particularly useful for employees on PAYE (Pay As You Earn), the system most UK workers use. For a line-by-line explanation of payslip deductions, read our PAYE payslip guide.

If you're self-employed, you'll want to use our Self-Employed Tax Calculator instead, as it accounts for Class 4 National Insurance contributions rather than the Class 1 contributions that apply to employees. Similarly, if you receive income from dividends, rental properties, or capital gains, those require separate calculations using our specialised tools.

Understanding Your Tax Calculation: The Complete Formula

Behind the scenes, this calculator follows HMRC's official methodology for calculating income tax and National Insurance. Here's exactly how your take-home pay is determined, step by step.

Step 1: Calculate Taxable Income
We start with your gross annual salary, then subtract any pension contributions you make through salary sacrifice or relief at source. These contributions reduce your taxable income, which is one of the most tax-efficient ways to save. For example, if you earn £40,000 and contribute 5% (£2,000) to your pension, your taxable income becomes £38,000.

Step 2: Apply the Personal Allowance
For the 2026/27 tax year, everyone gets a Personal Allowance of £12,570. This is the amount you can earn tax-free. However, if you earn over £100,000, your Personal Allowance reduces by £1 for every £2 you earn above this threshold. Once your income exceeds £125,140, you lose the Personal Allowance entirely.

Step 3: Calculate Income Tax at Progressive Rates
The UK uses a progressive tax system, meaning different portions of your income are taxed at different rates. Income between £12,571 and £50,270 is taxed at 20% (the basic rate). Income between £50,271 and £125,140 is taxed at 40% (the higher rate). Anything above £125,140 is taxed at 45% (the additional rate). Our calculator applies these bands automatically.

Step 4: Add National Insurance Contributions
Employees pay Class 1 National Insurance on earnings above £12,570 per year. You pay 8% on income between £12,570 and £50,270, then 2% on everything above £50,270. Unlike income tax, National Insurance has no personal allowance taper for high earners.

Step 5: Deduct Student Loan Repayments (If Applicable)
If you have a student loan, repayments are automatically deducted through PAYE. The amount depends on which plan you're on. Plan 1 (pre-2012 students in England and Wales) requires 9% of income above £26,900. Plan 2 (2012–2023 students in England and Wales) requires 9% above £29,385. Plan 4 (Scotland) is 9% above £33,795. Plan 5 (post-August 2023 starters in England) requires 9% above £25,000. Postgraduate loans require 6% above £21,000. This calculator lets you model one loan type at a time; use our Student Loan Repayment Calculator if you need a dedicated loan breakdown.

How to Use This Calculator: A Step-by-Step Guide

Using our income tax calculator is straightforward, but getting accurate results requires entering the right information. Here's what each field means and how to fill it correctly.

Annual Salary: Enter your gross annual salary before any deductions. This is the figure stated in your employment contract or job offer. If you're paid monthly, multiply your gross monthly salary by 12. Don't include bonuses or irregular payments unless they're guaranteed as part of your salary. For one-off bonus pay, use our Bonus Tax Calculator.

Pension Contribution: Enter the percentage of your salary that you contribute to your workplace pension scheme. Salary sacrifice pension schemes can reduce both your income tax and National Insurance; our salary sacrifice guide explains how this works. If you contribute a fixed amount rather than a percentage, divide it by your annual salary and convert to a percentage. For example, £3,000 contributed from a £50,000 salary is 6%.

Student Loan Plan: Select the plan that applies to your loan. If you studied in England or Wales and started before September 2012, you're likely on Plan 1. If you started between 2012 and August 2023, you're on Plan 2. If you started from August 2023 onwards, you're on Plan 5. Scottish students are on Plan 4. Postgraduate loans are separate. If you're unsure, check your latest student loan statement or read our guide to student loan deductions on payslips.

Understanding Your Results: What the Numbers Mean

Once you've calculated your tax, you'll see a breakdown of exactly where your money goes. Your gross income is what you earn before any deductions. The calculator then shows how much you pay in income tax, which depends on which tax bands your income falls into. National Insurance contributions come next, followed by any student loan repayments if applicable.

Your net income (take-home pay) is what actually lands in your bank account each month. The calculator also shows your effective tax rate, which is the total amount you pay in tax and National Insurance as a percentage of your gross income. This is useful for comparing job offers or understanding your overall tax burden. Our gross pay vs net pay guide explains the difference in more detail.

For example, if you earn £50,000 with no pension contribution, you'd pay around £7,486 in income tax and £2,994 in National Insurance. Your take-home pay would be approximately £39,520 annually, or £3,293 per month before any student loan or pension deductions. Your effective tax rate would be 21.0%.

Comparing Job Offers

When evaluating multiple job offers, the gross salary can be misleading. A £55,000 job offer might sound significantly better than £50,000, but after tax, the difference is smaller than the headline increase. With no pension contribution and no student loan, a £50,000 salary gives roughly £39,520 take-home, while £55,000 nets around £42,457 – a difference of £2,937 annually, or about £245 per month. Factor in commute costs, pension contributions, and other benefits before making your decision.

The £100,000 Salary Trap

Earning just over £100,000 creates an unusual tax situation. Between £100,000 and £125,140, you lose £1 of your Personal Allowance for every £2 you earn above £100,000. This creates an effective marginal tax rate of 60% on that income band. If you're offered a salary in this range, consider asking your employer to make larger pension contributions instead of a higher salary. A £110,000 salary with £10,000 employer pension contributions could leave you better off than £120,000 with minimal pension.

Student Loan Impact on Take-Home Pay

Student loan repayments can significantly reduce your take-home pay, especially on Plan 2. If you earn £35,000 with a Plan 2 loan, you'll repay about £505 annually (£42 per month). At £50,000, this rises to about £1,855 annually (£155 per month). If you have both a Plan 2 undergraduate loan and a postgraduate loan, the combined repayment at £50,000 would be around £3,595 per year. These deductions reduce your effective take-home rate, so use the Student Loan Repayment Calculator for a dedicated loan check.

Pension Contributions: Your Most Powerful Tax Tool

Pension contributions through salary sacrifice reduce both your income tax and National Insurance. If you're a higher-rate taxpayer earning £60,000 and increase your pension contribution from 5% to 10%, you'll sacrifice £3,000 of gross income but only lose about £1,740 from your take-home pay. The remaining £1,260 goes into your pension fund - that's a 42% saving from tax and NI relief. For additional-rate taxpayers, the benefit can be even greater.

While this calculator provides accurate estimates for standard employment income, it doesn't account for every possible tax situation. The calculator assumes you're employed under PAYE with no other sources of income. If you have rental income, dividends, capital gains, or foreign income, you'll need additional calculations and may need to complete a Self Assessment tax return.

The calculator also doesn't account for certain tax reliefs and allowances like Marriage Allowance transfers, Blind Person's Allowance, or the High Income Child Benefit Charge that applies if you or your partner earn over £60,000 and claim Child Benefit. If you're a company director, paid through dividends, or have income from multiple employments, the calculation becomes more complex.

Consider consulting a qualified accountant or tax adviser if you have multiple income sources, earn over £100,000 (where tax planning becomes more valuable), receive share-based compensation, work internationally, or have recently changed from self-employment to PAYE. The tax you can save often exceeds the cost of professional advice.

About This Calculator

This income tax calculator is maintained by Mia Carragher, a UK tax author who writes practical guidance to help UK taxpayers understand their obligations. The calculations are based on HMRC's official tax rates and thresholds for the 2026/27 tax year, which are confirmed each year in the Spring Budget and remain in effect from 6 April to 5 April the following year.

We review this calculator when tax thresholds change and update the methodology to reflect published PAYE rates. The estimates follow the standard income tax, National Insurance and student loan thresholds shown above, but your payslip can differ if your tax code, benefits, pension setup or residency changes the calculation.

While we strive for accuracy, this calculator is for guidance only and should not be considered financial or tax advice. If you believe your employer is deducting incorrect tax, contact HMRC's PAYE helpline on 0300 200 3300 or check your tax code through your Personal Tax Account at gov.uk.