Net Pay Salary Calculator UK

For England, Wales and Northern Ireland in 2026/27 (confirmed unchanged from 2025/26 per GOV.UK): Personal Allowance £0–£12,570 at 0%; Basic rate £12,571–£50,270 at 20%; Higher rate £50,271–£125,140 at 40%; Additional rate above £125,140 at 45%. The Personal Allowance tapers to zero between £100,000 and £125,140, creating an effective 60% marginal rate in this range.

Scotland has six income tax bands: Starter 19% (£12,571–£15,397), Basic 20% (£15,398–£27,491), Intermediate 21% (£27,492–£43,662), Higher 42% (£43,663–£75,000), Advanced 45% (£75,001–£125,140), Top 48% above £125,140. Source: Scottish Government 2026/27 income tax factsheet.

Employee Class 1 NI rates for 2026/27 are: 0% on earnings up to £12,570/year (£242/week); 8% on earnings from £12,570 to £50,270/year (£967/week); 2% on all earnings above £50,270/year. These rates are unchanged from 2025/26 and represent the reduced rate introduced in April 2024 (down from 12% pre-January 2024).

NI is calculated weekly/monthly (not annually like income tax) — so if you earn more in one month (e.g. bonus), you pay more NI that month. Unlike income tax, NI cannot be repaid at the end of the year based on annual earnings. Source: GOV.UK rates and thresholds 2026/27.

Your plan depends on when and where you started university. Plan 1 (started before September 2012 in England or Wales; or Northern Ireland; or Scotland before 1998): £26,900/year threshold, 9% rate. Plan 2 (England/Wales, September 2012 to July 2023): £29,385/year threshold, 9% rate. Plan 4 (Scotland, 1998 onwards): £33,795/year threshold, 9% rate. Plan 5 (England, August 2023 onwards): £25,000/year threshold, 9% rate. Postgraduate loan (Master's/PhD from 2016+): £21,000/year threshold, 6% rate.

All 2026/27 thresholds are from HMRC's official SL3 deduction tables (GOV.UK). If you're unsure which plan you're on, check studentloanrepayment.co.uk or your original loan documentation from the Student Loans Company.

A 5% pension contribution on a £40,000 salary (£2,000/year) reduces your take-home pay by approximately £1,440–£1,600 depending on the method — far less than £2,000 because you save tax and NI on the contribution. Via salary sacrifice, a basic rate taxpayer keeps approximately 72p per £1 contributed (saving 20% tax + 8% NI). Via relief at source, they keep approximately 80p (saving 20% tax only, with the provider claiming relief). For higher rate taxpayers (via Self Assessment claim), salary sacrifice saves 40%+ tax plus 2% NI.

Importantly, contributing to a pension that reduces your income below £100,000 saves 60p per £1 in the Personal Allowance taper zone — the most efficient pension contribution available in the UK. Use our Pension Tax Relief Calculator for your exact figures.

Small differences between calculators are common for several reasons: some assume annual NI calculation (when PAYE NI is actually period-based); some don't account for the Personal Allowance taper above £100,000; some use rounded thresholds; and some don't apply the correct student loan plan. This calculator uses HMRC's confirmed rates and applies the correct PAYE methodology for 2026/27. For your actual tax position, your employer's payroll software will use your specific tax code and circumstances.

If your take-home pay seems wrong, check your payslip's tax code. Code 1257L means you have the standard £12,570 Personal Allowance. An emergency code (W1/M1 suffix) means tax is calculated on a non-cumulative basis — this can over- or under-deduct tax until corrected. Contact HMRC (0300 200 3300) or update your details at gov.uk/personal-tax-account.

Scottish taxpayers pay income tax under Scottish Parliament rates on non-savings, non-dividend income. The key difference from England is the Intermediate rate (21% on £27,492–£43,662) and the Higher rate (42% on £43,663–£75,000) versus England's 40% on earnings above £50,270. At £50,000, a Scottish taxpayer pays approximately £1,479 more income tax per year than an equivalent English taxpayer.

National Insurance is the same UK-wide — Scottish taxpayers are not protected from the NI bill. Student loan plans also differ for Scottish students (Plan 4 with the highest threshold of £33,795). Our calculator correctly applies Scottish income tax bands when you select Scotland as your tax region. Source: Scottish Government 2026/27 income tax technical factsheet.

Your effective tax rate (also called average tax rate) is your total tax and NI as a percentage of your total gross pay. On a £50,000 salary in England: income tax = £7,486, NI = £2,994, total = £10,480. Effective rate = 10,480 ÷ 50,000 = 20.96%. This tells you how much of your overall pay is taken in tax and NI.

Your marginal tax rate is the rate you pay on the next pound of income earned. At £50,000 (just below the higher rate threshold) your marginal rate is 28% (20% income tax + 8% NI). At £51,000 (just above the threshold) it jumps to 42% (40% income tax + 2% NI). The marginal rate is what matters when considering pay rises, overtime, bonuses, and pension contributions — it tells you how much of any extra income you actually keep.