UK Finance Planning

UK salary calculator (2026/27 tax year)

Enter your gross salary to see an estimate of your Income Tax, National Insurance, pension contributions and resulting net pay, monthly and annually. Scottish tax codes are detected automatically.

Gross salary vs net salary

Gross salary is the headline figure in your contract before anything is taken off. Net salary — often called take-home pay — is what remains after Income Tax, National Insurance, pension contributions and any other deductions such as student loan repayments.

The gap between the two widens as you earn more, because higher slices of your income are taxed at higher rates and because pension contributions are usually a percentage of your salary.

Income Tax in 2026/27

Income Tax is charged in bands. The Personal Allowance is tax free, then each band above it is taxed at its own rate — only the income inside a band is taxed at that band's rate, so a pay rise never reduces your take-home pay.

If your adjusted net income goes above £100,000, the Personal Allowance is reduced by £1 for every £2 above the threshold, which produces an effective marginal rate of 60% on that slice of income.

National Insurance

Employee (Class 1) National Insurance is charged on earnings above the primary threshold at the main rate, then at a lower rate above the upper earnings limit. Unlike Income Tax, National Insurance is normally worked out on each pay period rather than cumulatively across the year.

Pension deductions

How your pension contribution affects take-home pay depends on the method your employer uses. Salary sacrifice reduces gross pay before tax and National Insurance. Net pay arrangements reduce taxable pay but not National Insurance. Relief at source takes the contribution from net pay, and the scheme reclaims basic-rate relief.

Student loans and Scottish rates

Student loan repayments are a percentage of income above your plan threshold and are calculated separately from Income Tax. If your tax code starts with an "S", Scottish Income Tax bands apply to your non-savings income instead of the rest-of-UK bands.

Why your payslip may differ

Real payslips can differ from any calculator because of week 1 / month 1 tax codes, mid-year pay changes, bonuses, benefits in kind, backdated adjustments, salary sacrifice arrangements applied at different points, and employer-specific deductions. Treat the numbers here as an estimate and check your payslip or HMRC personal tax account for the definitive position.

Methodology, assumptions and limitations

  • 2026/27 UK rates, bands and thresholds, verified against primary sources on 21 August 2026.
  • Pay is treated as even across all 12 months (cumulative PAYE), so a mid-year pay change will not match exactly.
  • Class 1 employee National Insurance only — no Class 1A, Class 2 or Class 4 self-employment NI.
  • Scotland is detected from an "S" prefix on the tax code; other UK nations use the rest-of-UK bands.
  • Results are estimates for comparison and education, not a payroll calculation or a tax return.
  • Benefits in kind, company cars, taxable expenses and P11D adjustments are not modelled.
  • Week 1 / month 1 and emergency tax code operation is not modelled — codes are treated cumulatively.
  • This is not regulated financial advice and does not take your personal circumstances into account.

UK Finance Planning provides calculation and planning tools for education and comparison. It is not a financial adviser, is not authorised by the Financial Conduct Authority, and is unconnected to any similarly named advice firm. All results are estimates.

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