Net Salary After Tax Calculator (UK)

UK Take-Home Pay Guide 2026/27

Income Tax Bands 2026/27

Personal allowance: £12,570 (zero tax). Basic rate 20%: £12,571–£50,270. Higher rate 40%: £50,271–£125,140. Additional rate 45%: above £125,140. The personal allowance is tapered by £1 for every £2 of income above £100,000, creating an effective 60% marginal rate on income between £100,000 and £125,140. Scottish residents pay different rates on non-savings income: starter rate 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%.

National Insurance 2026/27

Class 1 employee NI contributions: 0% on earnings up to £12,570 per year (£1,048/month). 10% on earnings between £12,570 and £50,270. 2% on earnings above £50,270. The NI rate was cut from 12% to 10% in January 2024 and remains at 10% for 2026/27 after a further cut from 11% in April 2023. Unlike income tax, NI is calculated on a weekly or monthly basis — there is no annual reconciliation for employees.

Maximising Take-Home Pay Legally

The most effective strategies: salary sacrifice into a pension (reduces gross salary for tax and NI purposes, saving 20-42% income tax plus 10% NI on the sacrificed amount). Cycle to Work scheme: save 32-52% on a bike and accessories up to £1,000. Childcare vouchers or tax-free childcare: up to £2,000 per year per child in government top-up. Electric company car: very low Benefit in Kind rates (2% of list price in 2026/27). All these reduce taxable pay before it reaches HMRC.

Understanding Your Payslip

Key payslip items: Gross pay (before deductions). Taxable pay (gross minus pension and other salary sacrifice). Income tax (deducted via PAYE). NI (National Insurance Class 1 employee contributions). Pension (your contribution — employer contributions appear separately or on a pension statement). Net pay (what hits your bank account). Year-to-date (YTD) figures show cumulative deductions since April 6th. If your tax code changes, your employer adjusts future deductions to reconcile any over or u