What comes out of your pay
The salary you’re offered is rarely what hits your bank account. In the UK, several things come out before you’re paid: income tax, National Insurance, a student loan repayment if you have one, and any pension contribution. Salary-sacrifice pension is taken from your pay before tax and National Insurance are worked out, so it lowers both, which is why paying more into a pension can cost your take-home less than you’d expect.
How your income tax is calculated (2026/27 bands)
| Taxable income | Band | Rate |
|---|---|---|
| Up to £12,570 | Personal Allowance, tax-free | 0% |
| £12,571 – £50,270 | Basic rate | 20% |
| £50,271 – £125,140 | Higher rate | 40% |
| Over £125,140 | Additional rate | 45% |
These are the 2026/27 bands for England, Wales and Northern Ireland. Your £12,570 Personal Allowance is reduced by £1 for every £2 you earn over £100,000, and is gone entirely at £125,140. Verify the current figures at gov.uk, this tool is a guide, not tax advice.
If you live in Scotland
Scotland sets its own income tax bands, so switch the calculator to Scotland to see your real figure. There are six bands for 2026/27 rather than three:
| Income | Band | Rate |
|---|---|---|
| Up to £12,570 | Personal Allowance | 0% |
| £12,571 to £16,537 | Starter rate | 19% |
| £16,538 to £29,526 | Basic rate | 20% |
| £29,527 to £43,662 | Intermediate rate | 21% |
| £43,663 to £75,000 | Higher rate | 42% |
| £75,001 to £125,140 | Advanced rate | 45% |
| Over £125,140 | Top rate | 48% |
The 42% higher rate starts at £43,663 in Scotland against £50,270 elsewhere, which is where most of the difference comes from. The crossover is around £33,500: below it a Scottish taxpayer pays slightly less income tax, above it they pay more. On a £50,000 salary the Scottish bands leave about £38,024 against £39,520 in the rest of the UK. Two things do not change: your £12,570 Personal Allowance is UK-wide, and National Insurance is not devolved, so it is identical wherever you live.
How National Insurance works
National Insurance is a separate deduction from income tax. As an employee in 2026/27, you pay 8% on earnings between £12,570 and £50,270, then 2% on anything above £50,270. There’s no NI on the first £12,570 you earn. It funds the state pension and some benefits, and because the 8% band ends at £50,270, your marginal NI rate falls once you cross into the higher-rate income tax band.
Student loan plans
Student loan repayments are income-contingent: you only repay on the part of your income above your plan’s threshold, at the rate for that plan. Here are the 2026/27 thresholds this calculator uses.
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Thresholds are reviewed annually. Confirm your plan and current threshold on gov.uk or in your student loan account.
How to use this calculator
- Enter your annual gross salary, the figure before tax, National Insurance and pension.
- Choose your student loan plan, or leave it on None if you don't have one.
- Add your pension contribution as a percentage if you pay into a salary-sacrifice scheme.
- Switch between yearly, monthly and weekly to see your take-home for each period.
- Read your net pay, with income tax, National Insurance, student loan and pension broken out.
Frequently asked questions
Take-home pay by salary
Related tools
More tax & pay calculators
Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for UK and Australian readers.
More from Simon →