UK Take Home Pay Calculator 2026/27
Model: pension is taken off before income tax is worked out (relief at source), but National Insurance is still charged on your full gross salary. That matches how most workplace pensions work. Figures are estimates, not tax advice.
How the calculation works
Most people only ever see the bottom line on their payslip. This calculator shows you the middle — where every pound goes. Your employer takes three things out of your pay before it reaches your bank account:
- Income tax — you pay nothing on the first £12,570 (the personal allowance), then 20% up to £50,270, 40% up to £125,140 and 45% above that. Each rate only applies to the slice of pay inside that band.
- National Insurance (Class 1) — 8% on earnings between £12,570 and £50,270 a year, then 2% on anything above £50,270.
- Pension — whatever percentage you choose. It comes off before income tax is worked out, which is why paying more into a pension also cuts your tax bill.
Income tax bands 2026/27 (England, Wales & Northern Ireland)
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
If you earn over £100,000, your personal allowance shrinks by £1 for every £2 above that, and disappears completely at £125,140. That creates an effective 60% marginal rate between £100,000 and £125,140.
Worked example: £40,000 salary, 5% pension
| Year | Month | |
|---|---|---|
| Gross salary | £40,000.00 | £3,333.33 |
| Pension (5%) | −£2,000.00 | −£166.67 |
| Income tax | −£5,086.00 | −£423.83 |
| National Insurance | −£2,194.40 | −£182.87 |
| Take-home pay | £30,719.60 | £2,559.97 |
What affects your take-home pay?
- A pay rise — try it above. Crossing £50,270 means 40% tax on the extra pay (and 2% NI), so you keep 58p of every extra £1.
- Pension contributions — raising your pension from 5% to 8% on £40,000 cuts your take-home pay by about £80 a month, but £100 a month extra goes into your pension.
- Your tax code — this calculator uses the standard 1257L code. A different code changes your tax-free amount.
- Student loan — not included here. Plan 2 repayments are 9% of earnings above £29,385 a year.
Related: Hourly to Salary Calculator · Income Tax Calculator 2026/27 · Minimum Wage 2027
Sources: GOV.UK “Income Tax rates and Personal Allowances”; HMRC “Rates and thresholds for employers 2026 to 2027” (Class 1 National Insurance). Checked 13 November 2026.