How This Take Home Pay Calculator Works
This tool runs the same arithmetic your employer's payroll software uses. You enter a gross salary — the annual figure on your contract — and the calculator walks through each layer of deduction in order: first your tax-free Personal Allowance, then Income Tax across the relevant bands, then National Insurance contributions, then any pension or student loan deductions you've specified.
How Income Tax Is Worked Out
The UK uses a progressive tax system. For the 2026/27 tax year, the first £12,570 of your income is tax-free (your Personal Allowance). Everything between £12,571 and £50,270 is taxed at the Basic Rate of 20%. Income between £50,271 and £125,140 is taxed at the Higher Rate of 40%, and anything above £125,140 is taxed at the Additional Rate of 45%. Scotland has its own separate band structure with six rates ranging from 19% to 48%.
How National Insurance Is Worked Out
National Insurance contributions are calculated separately from Income Tax. For employees in 2026/27, you pay 8% on earnings between £12,570 and £50,270 per year (the Primary Threshold to the Upper Earnings Limit), and 2% on anything above that. Unlike Income Tax, NI thresholds and rates are the same across the whole UK, including Scotland.
Gross Pay vs Net Pay, Explained
Your gross pay is the headline salary on your employment contract — before any deductions. Your net pay (also called take-home pay) is what actually appears in your bank account each month. The difference is made up of Income Tax, National Insurance, pension contributions, and any student loan repayments. On a typical £35,000 salary, the gap between gross and net is roughly £6,280 per year.
What This Calculator Includes (Pension, Student Loan, Tax Code)
Beyond the basics of Income Tax and NI, this tool handles pension contributions (salary sacrifice, deducted before tax), all five student loan repayment plans, and custom tax codes. If your employer uses a non-standard tax code — perhaps because you have untaxed income from another source, or because HMRC has adjusted your allowance — enter it directly and the calculator will adjust accordingly.
Take Home Pay Calculator Results by Region
If you live or work in Scotland, your Income Tax is calculated using the Scottish Government's own rate bands, which differ from the rest of the UK. Use the Scottish Tax Rates toggle above, or visit our dedicated Scotland take home pay calculator page for a full breakdown of how Scottish bands affect your pay.
Frequently Asked Questions
This take home pay calculator uses the current UK Income Tax bands and National Insurance thresholds published by HMRC for the 2026/27 tax year, so results match your payslip to within a few pence for standard tax codes. It is an independent tool and not affiliated with HMRC.
Yes. Enter your pension contribution percentage and the calculator will deduct it from your gross salary before calculating Income Tax, giving you an accurate take-home figure. National Insurance is still calculated on your full gross pay, as it is in real payroll.
Absolutely. Toggle the Scottish Tax Rates switch and the calculator will apply Scotland's separate Income Tax bands — including the Starter, Intermediate, and Advanced rates that differ from the rest of the UK. National Insurance thresholds remain the same across the UK.
This take home pay calculator supports Plan 1 (pre-2012), Plan 2 (post-2012), Plan 4 (Scotland), Plan 5 (post-2023), and Postgraduate Loan repayments. Each plan has a different repayment threshold and rate, which the calculator applies automatically.
Gross pay is your total salary before any deductions. Take home pay — also called net pay — is what actually lands in your bank account after Income Tax, National Insurance, pension contributions, and any student loan repayments have been subtracted.
Above £100,000, your Personal Allowance (the tax-free portion of your income) is gradually reduced by £1 for every £2 earned over that threshold. By £125,140, the entire allowance is gone. This creates an effective marginal tax rate of 60% in that income band.
Whether you're evaluating a new job offer, planning a budget, or simply want to understand your payslip, this take home pay calculator gives you a clear, instant answer. For a deeper look at how net pay works and what it means in practice, explore our net pay calculator and guide. You can also see a step-by-step breakdown of Income Tax and National Insurance, or find out exactly how much tax you'll pay on any UK salary.