calculatetax.co.uk
Tax year: 2025/26 & 2026/27 Jurisdiction: UK PAYE / Scotland option Last verified: May 10 2026

UK Take-Home Pay (PAYE)
Calculator

Enter your salary below. Expand the sections to add pension, bonus, overtime, tax codes, student loans and other PAYE deductions. The calculator uses official published rates and shows where payroll timing or HMRC records can still make your payslip differ.

£
Tax Code 1257L

Leave as 1257L if unsure. This is the standard code for 2025/26 and 2026/27.

Student Loan Repayments
Pension Contributions
Bonus Payment
£

After calculating, you'll see a side-by-side comparison of a normal month versus your bonus month — showing exactly how much extra tax is deducted and how much you take home.

Overtime

Enter your overtime hours per month and the pay multiplier. For example, 5 hours at time-and-a-half = 5 hours @ 1.5. Double time = 2.0. Use rate 2 if you have a second overtime rate (e.g. weekend rate).

Additional Options
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Match a Payslip

Leave these on the defaults for a normal annual salary estimate. Change them when you are trying to match a monthly, weekly or four-weekly payslip.

Annual estimate is easier to understand. Pay-period mode can be closer to a payslip, especially where monthly thresholds, student loans or NI categories change the deduction.

UK Income Tax Rates 2026/27

England, Wales & Northern Ireland

BandIncomeRate
Personal AllowanceUp to £12,5700%
Basic Rate£12,571–£50,27020%
Higher Rate£50,271–£125,14040%
Additional RateOver £125,14045%

Scotland 2026/27

BandIncomeRate
Starter£12,571–£16,53719%
Basic£16,538–£29,52620%
Intermediate£29,527–£43,66221%
Higher£43,663–£75,00042%
Advanced£75,001–£125,14045%
TopOver £125,14048%

National Insurance 2026/27: category A employees pay 8% NI on earnings between £12,570 and £50,270, and 2% above. Employers pay 15% on earnings above £5,000. The Personal Allowance tapers by £1 for every £2 of adjusted net income above £100,000, reaching zero at £125,140.

Understanding Your Tax Code

Your tax code is issued by HMRC and tells your employer how much Income Tax to deduct. You'll find it on your payslip, P60, or P45.

Code What it means Typical reason
1257LStandard personal allowance of £12,570Most employees — one job, no benefits in kind
L suffixEntitled to the standard personal allowance (number × 10 = your allowance)e.g. 1100L = £11,000 allowance
M suffixIncreased personal allowance — received 10% of partner's allowance via Marriage AllowanceMarried / civil partnership
N suffixDecreased personal allowance — transferred 10% to partner via Marriage AllowanceMarried / civil partnership
T suffixHMRC is reviewing items in this tax codeComplex circumstances under review
BRAll income taxed at 20% basic rate — no personal allowance appliedSecond job or pension; allowance used elsewhere
D0All income taxed at 40% higher rateSecond job where main job is already higher rate
D1All income taxed at 45% additional rateAdditional rate taxpayer with multiple jobs
NTNo tax deducted at allNon-UK resident or HMRC-instructed exemption
0TNo personal allowance; tax at each band from £0Emergency tax or allowance fully used by another source
K prefixNegative allowance — benefits exceed personal allowance; taxable pay is increasedCompany car, private medical, or large underpaid tax

Source: HMRC PAYE guidance. If your tax code looks wrong, contact HMRC on 0300 200 3300 or update it via your Personal Tax Account.

⚠️ Personal Allowance Taper — Earners Over £100,000

If your adjusted net income exceeds £100,000, your Personal Allowance reduces by £1 for every £2 earned above that threshold. At £125,140, the allowance reaches zero. This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140 — one of the highest effective rates in the UK tax system. Making pension contributions or Gift Aid donations can bring your income below this threshold and restore your allowance.

Salary Sacrifice vs. Other Pension Types

How you contribute to a pension significantly affects your take-home pay.

Salary Sacrifice

Your gross salary is reduced before tax and NI are calculated. You save Income Tax and National Insurance on the contribution. This is the most tax-efficient method — both you and your employer pay less NI.

Net Pay Arrangement

Your contribution is deducted before Income Tax but after National Insurance. Income Tax relief is given through payroll, so higher and additional rate relief is usually automatic. No employee NI saving applies.

Relief at Source

You pay from taxed income and the provider normally claims 20% basic rate relief from HMRC. Higher and additional rate taxpayers usually claim extra relief separately. No employee NI saving applies.

Student Loan Repayment Plans 2026/27

Repayments are deducted automatically through PAYE once your income exceeds the threshold for your plan. You repay 9% (or 6% for Postgraduate) of earnings above the threshold — not of your total income.

Plan Who it applies to Threshold 2026/27 Rate
Plan 1Started before Sep 2012 (England/Wales) or any time in Northern Ireland£26,9009%
Plan 2Started Sep 2012 - Jul 2023 in England or Wales£29,3859%
Plan 4Scottish student loan (any start date in Scotland)£33,7959%
Plan 5Started Aug 2023 or later in England£25,0009%
PostgraduatePostgraduate Master's or Doctoral loan (England/Wales)£21,0006%

If you have more than one undergraduate plan, payroll normally applies the plan with the lowest repayment threshold rather than stacking several 9% deductions. A Postgraduate Loan can be deducted as well as an undergraduate plan. Check your plan type at gov.uk.

Why Your Payslip May Not Match a Salary Calculator

A salary calculator is usually an annual estimate. A payslip is a payroll-period calculation, so small differences can be completely normal.

Use annual estimate when...

  • You want to compare jobs, salaries or pension percentages.
  • Your pay is steady and you are not trying to match one exact payslip.
  • You want a clean yearly, monthly and weekly take-home view.

Use Match a Payslip when...

  • Your monthly or weekly deduction is slightly different from the annual estimate.
  • You are on an NI category such as C, J, M, H or Z.
  • Your student loan deduction is being checked against a monthly, weekly or four-weekly payslip.

The pay-period mode uses period thresholds for PAYE, National Insurance and student loans. It still cannot know your full year-to-date payroll history, so it should be treated as a payslip-matching estimate rather than a replacement for your employer's payroll system.

Example Take-Home Pay Figures

These examples use 2026/27 England, Wales and Northern Ireland rates, tax code 1257L, NI category A, no pension and no student loan. They are useful benchmarks before adding your own pension, loan or payslip settings.

Gross salary Income Tax NI Annual take-home Monthly take-home
£25,000£2,486£994£21,520£1,793
£35,000£4,486£1,794£28,720£2,393
£50,000£7,486£2,994£39,520£3,293
£100,000£27,432£4,011£68,557£5,713

Frequently Asked Questions

What is the difference between gross pay and net pay?
Gross pay is your total salary before any deductions. Net pay — your take-home pay — is what you receive after Income Tax, National Insurance, pension contributions, and any student loan repayments have been deducted.
Why does my take-home pay decrease so sharply between £100,000 and £125,140?
Because your Personal Allowance (£12,570) is tapered away at a rate of £1 for every £2 earned over £100,000. This means you effectively pay 40% tax on the lost allowance plus 40% on the income itself — creating a 60% effective marginal rate in that band. Making pension contributions reduces your "adjusted net income" and can restore your allowance.
What does my tax code mean and how do I change it?
Your tax code tells your employer how much to deduct. The number multiplied by 10 equals your tax-free personal allowance. The letter suffix modifies how it's applied (L = standard, BR = no allowance, K = negative allowance, etc.). If you believe your code is wrong, you can view and update it through your HMRC Personal Tax Account or by calling 0300 200 3300.
Does salary sacrifice affect my state pension or mortgage applications?
Salary sacrifice reduces your contractual salary, which can affect mortgage lending calculations if the lender uses payslip gross pay. On State Pension, NI contributions below the Lower Earnings Limit can create gaps, although most full-time employees stay well above it. Always check your employer's scheme rules before opting in.
I have two jobs — how is my tax code applied?
HMRC typically assigns your full Personal Allowance (1257L) to your primary job. Your second job usually receives a BR or D0 code — meaning all income from that job is taxed at 20% or 40% with no tax-free threshold applied. You can use this calculator separately for each job to see your total position.
When do I start repaying my student loan?
Repayments begin automatically through PAYE in April after you finish your course, once your income exceeds your plan's repayment threshold. You repay 9% (6% for Postgraduate Loan) of earnings above the threshold only — not on your full salary. Repayments stop in any pay period where you earn below the threshold.
Are all the rates on this calculator official HMRC rates?
Yes. Income Tax bands, National Insurance thresholds and student loan repayment thresholds used in this calculator are sourced from GOV.UK Income Tax guidance, HMRC employer threshold guidance, GOV.UK student loan guidance and the Scottish Government's published Scottish Income Tax bands.

How this take-home pay calculator works

Inputs used

  • Gross income and pay period, including hourly, daily, weekly, four-weekly, monthly and annual pay.
  • Tax year, tax code, Scottish residence, pension method, student loan plan, bonus, overtime and optional deductions.
  • Optional payslip-matching settings: payroll frequency, PAYE basis, National Insurance category and student loan threshold basis.

Calculation method

  • Converts your entered pay to an annual figure, then adds bonus and estimated overtime where entered.
  • Applies salary sacrifice before Income Tax and National Insurance, then applies net pay pension contributions before Income Tax only.
  • Calculates Personal Allowance, including the £100,000 taper, Blind Person's Allowance and supported tax codes such as 1257L, BR, D0, D1, 0T, NT and K codes.
  • Applies England, Wales and Northern Ireland bands or Scottish bands to taxable income, then calculates employee Class 1 National Insurance using the selected NI category.
  • In annual mode, uses annual thresholds. In payslip-matching mode, periodises PAYE, National Insurance and student loan thresholds for the selected payroll frequency.
  • Calculates student loan deductions using the selected threshold basis. If several undergraduate plans are selected, it uses the lowest selected threshold once; a Postgraduate Loan can be added separately.
  • Shows annual, monthly, four-weekly, weekly and daily results plus effective tax rates and a bonus-month comparison where relevant.

Assumptions

  • National Insurance defaults to category A. Categories B, C, H, J, M and Z are included for common payslip-matching cases.
  • The calculator estimates annualised PAYE. Actual payroll can vary by pay frequency, cumulative tax position, Week 1/Month 1 codes, employer rounding and previous taxable pay in the year.
  • Relief at source pension entries show the employee net cost after basic-rate provider relief, while net pay and salary sacrifice entries show the amount deducted from payroll.
  • Bonus and overtime are annual estimates; the bonus-month panel is a practical illustration rather than a full payroll-period PAYE recalculation.

What this does not cover

  • It does not replace HMRC PAYE records, your employer payroll system or payslip advice.
  • It does not model director annual earnings periods, exact cumulative year-to-date PAYE history, benefits collected through coding notices, court orders, attachment of earnings, Scottish savings or dividend tax, or full Self Assessment reconciliation.
  • K-code results are approximate because payroll rules can cap PAYE deductions in a pay period. Use HMRC or payroll guidance if a K code materially affects your pay.
  • For related planning, use the Marriage Allowance calculator where a spouse transfer may affect your tax code, or the pension and dividend tools for income outside ordinary PAYE.

Official sources

Last verified: May 10 2026. Calculations are estimates based on the published rules and assumptions shown on this page.

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