Take-home pay calculator.
Estimate your take-home pay from a gross annual salary, after Income Tax and employee National Insurance, at 2026/27 rates. This is an estimate for general guidance only, not personalised tax advice.
Enter your annual salary
Enter your salary, then click Calculate to see an estimate.
Rates used in this calculator (2026/27 tax year)
| Income Tax band | Rate |
|---|---|
| Up to £12,570 (personal allowance) | 0% |
| £12,571 – £50,270 | 20% |
| £50,271 – £125,140 | 40% |
| Over £125,140 | 45% |
| Employee National Insurance (Class 1) | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 – £50,270 | 8% |
| Over £50,270 | 2% |
Source: gov.uk rates pages, checked July 2026. Estimates for general guidance only.
Common questions
How is take-home pay calculated?
Gross salary less Income Tax and employee National Insurance, both worked out in slices. Income Tax: nothing on the first £12,570 under the personal allowance, 20% from £12,571 to £50,270, 40% to £125,140 and 45% above. National Insurance: 8% between £12,570 and £50,270, then 2% above. Only the money inside each band is charged at that band's rate, which is why a pay rise never leaves you worse off overall — a persistent myth that costs people promotions they should have taken.
Why is my personal allowance lower over £100,000?
Because it is withdrawn by £1 for every £2 of income above £100,000, disappearing entirely at £125,140. That creates an effective marginal rate of 60% on the band between the two figures — you pay 40% on the income and lose allowance that then gets taxed at 40% as well. The calculator accounts for this automatically. It is also the single strongest argument for a pension contribution or salary sacrifice at that income level, because reducing adjusted net income below £100,000 restores the allowance pound for pound.
Does this include pension or student loan?
No. It assumes a standard tax code with no pension contributions, student loan or postgraduate loan repayments, salary sacrifice, benefits in kind or other deductions, and that this is your only income. Each of those changes the figure: a student loan takes 9% of income over the plan threshold, and a pension contribution reduces both the tax and the take-home. If you are on a non-standard tax code — a K code, or one adjusted for underpaid tax or a company car — your actual net pay will differ, sometimes substantially.
What if my tax code is wrong?
Check it, because HMRC gets it wrong often enough to be worth ten minutes of your time. The standard code for 2026/27 assumes a full personal allowance and no adjustments; a K code, a BR code on a second job, or an estimate of untaxed income baked into your code will all change your net pay materially. You can view and correct your code through your personal tax account or the HMRC app. An overpayment is refunded eventually, but eventually can mean the following tax year, so a wrong code is a cashflow problem now.
Is this right for company directors?
Not exactly. Directors of their own companies usually take a mix of salary and dividends, which are taxed differently, and National Insurance for directors is calculated on an annual cumulative basis rather than per pay period — so the deduction pattern through the year looks different even on the same salary. The salary and dividend calculator is the right tool for extracting money from a limited company. Use this one for an employed salary, including a director on a straightforward PAYE-only arrangement.
What does the employer pay on top?
More than most employees realise, which is worth knowing before a salary negotiation. On top of your gross salary an employer pays employer's National Insurance, a minimum auto-enrolment pension contribution, plus the cost of holiday, equipment and any benefits. The total cost of employing someone is materially above their headline salary — see what a new hire actually costs. It is also why salary sacrifice into a pension can suit both sides: it reduces the employer's National Insurance as well as yours.
Two deductions, both worked out in slices
Income Tax. The first £12,570 is covered by your personal allowance. The next £37,700 is taxed at 20%, taking you to £50,270. From there to £125,140 it is 40%, and above that 45%. Only the money inside each band is taxed at that band's rate.
Employee National Insurance. 8% on earnings between £12,570 and £50,270, then 2% on everything above. Note that NI does not rise at the higher-rate threshold — it falls.
The taper above £100,000. Your personal allowance drops by £1 for every £2 earned over £100,000, disappearing entirely at £125,140. Because you lose allowance while also paying 40% on the extra earnings, the effective rate of Income Tax on that stretch of salary is 60%. The calculator handles it automatically, but it is worth understanding — it is the strongest argument for a pension contribution or salary sacrifice that most people never hear.
£35,000 a year, line by line
- Gross salary£35,000
- Income Tax — (£35,000 − £12,570) × 20%−£4,486
- Employee NI — (£35,000 − £12,570) × 8%−£1,794
- Take-home for the year£28,720
- Take-home per month£2,393
A pay rise is taxed the same way. On this salary, £1,000 more gross leaves £720 in your pocket — 20% tax and 8% NI on the extra. Cross £50,270 and the marginal position changes to 40% tax but only 2% NI, so £1,000 more gross leaves £580. Cross £100,000 and the taper takes it down to £380, because that £1,000 also costs you £500 of personal allowance.
If the number looks wrong on your payslip
- Check your tax code first. This assumes the standard code. A code with a K prefix, a BR code on a second job, or an emergency code will all produce a different figure. Codes are frequently wrong after a job change.
- Add back what this leaves out. Pension contributions, student loan and postgraduate loan repayments, salary sacrifice, benefits in kind such as a company car, and any unpaid tax being collected through your code.
- If you earn between £100,000 and £125,140, do the pension sum. A contribution in that range gets relief at an effective 60%. It is the highest-value pension contribution in the system, and it is entirely legitimate.
- If you're a director, use the right tool. Extracting money from your own company is a different calculation — see the salary and dividend calculator.
