Calculators
- Take-home pay calculatorSalary after Income Tax, National Insurance, pension and student loan, with your tax code and Scottish rates.
- Salary after taxWhat common salaries leave per year, month and week, for England, Wales and Northern Ireland and for Scotland.
- Pro rata salary calculatorA part-time salary from the full-time salary and your hours or days, with pro rata holiday.
How pay is taxed in the UK
Most employees in the UK pay tax through PAYE (Pay As You Earn): your employer takes Income Tax, National Insurance and any student loan repayment from each payslip and sends them to HMRC, so the money that reaches your bank account is already net of tax.
Income Tax and your tax code. HMRC gives your employer a tax code that tells payroll how much of your pay is tax-free. The standard code for 2026/27 is 1257L, which gives a Personal Allowance of £12,570 a year. In England, Wales and Northern Ireland, pay above the allowance is taxed at the basic rate of 20%, the higher rate of 40% above £50,270 and the additional rate of 45% above £125,140, and the Personal Allowance is reduced for income above £100,000 (HMRC, Rates and thresholds for employers 2026 to 2027). Wales has Welsh rates of Income Tax, set by the Welsh Government and shown by a tax code starting with C.
Scotland. The Scottish Parliament sets its own Income Tax rates and bands for pay, from 19% to 48% (Scottish Government, Scottish Income Tax 2026 to 2027). They apply to people who live in Scotland, shown by a tax code starting with S. The Personal Allowance, National Insurance and student loan rules are the same as in the rest of the UK.
National Insurance. Employees in category A pay 8% on earnings between the Primary Threshold of £12,570 and the Upper Earnings Limit of £50,270, and 2% above that (HMRC, Rates and thresholds for employers 2026 to 2027). It is worked out on each pay period separately and is the same across the UK. Your employer also pays National Insurance on your pay, which does not come out of your salary.
Student loans. Repayments are 9% of pay above your plan's threshold: £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. A Postgraduate Loan adds 6% above £21,000 (Student Loans Company / GOV.UK, 2026 to 2027). Payroll takes the repayment once HMRC has told your employer which plan you are on.
Workplace pension. Under automatic enrolment most employees are put into a workplace pension and pay a percentage of their pay into it. Depending on the scheme, the contribution is taken after tax with basic-rate relief added by the scheme (relief at source), before Income Tax (net pay arrangement) or through salary sacrifice, which lowers the pay that both Income Tax and National Insurance are worked out on. The take-home pay calculator handles all three.
Frequently asked questions
How much tax do I pay on my salary in the UK?
It depends on your salary, tax code and where you live. Income Tax is charged on pay above the Personal Allowance of £12,570, and National Insurance at 8% on earnings above £12,570 (HMRC, Rates and thresholds for employers 2026 to 2027); the take-home pay calculator shows both for your own figures.
What is the Personal Allowance for 2026/27?
The standard Personal Allowance for 2026/27 is £12,570, given by tax code 1257L. It is reduced for income above £100,000 (HMRC, Rates and thresholds for employers 2026 to 2027).
Is tax different in Scotland?
Income Tax on pay is different, because Scotland sets its own rates and bands (Scottish Government, Scottish Income Tax 2026 to 2027). National Insurance and student loan repayments are the same as in the rest of the UK.
When does a student loan come off my wages?
Once your pay in a pay period is above your plan's threshold, payroll takes 9% of the amount above it. The thresholds for 2026/27 are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5 (Student Loans Company / GOV.UK, 2026 to 2027).
Estimate for tax year 2026/27 based on HMRC, Rates and thresholds for employers 2026 to 2027. Not tax, legal or financial advice. Your employer's payroll may differ.