How is UK take-home pay calculated in 2026/27?
UK take-home pay is what's left after Income Tax and National Insurance are deducted from your gross salary. Every employee gets a personal allowance of £12,570 — income up to this is tax-free. From £12,571 to £50,270 (the basic rate band) you pay 20% Income Tax. From £50,271 to £125,140 (higher rate) it's 40%. Above £125,140 (additional rate) it's 45%. Critically, your personal allowance is tapered away by £1 for every £2 you earn above £100,000 — fully gone at £125,140. This creates an effective 60% marginal rate between £100k and £125k that catches many people off-guard. National Insurance Class 1 is 8% on earnings between £12,570 and £50,270, then 2% above. Combined with Income Tax, marginal rates jump from 20%+8% (28%) to 40%+2% (42%) at the higher rate threshold. This calculator uses England/Wales/Northern Ireland rates — Scotland has different bands (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%). HMRC publishes the official rates and PAYE codes via gov.uk.
Official source: HMRC / gov.uk · Data updated: 2026-04-09