How to use the UK salary calculator
- Annual salary — gross pay before anything is taken off.
- Where you pay tax — Scotland has its own income tax bands; England, Wales and Northern Ireland share one set. National Insurance is the same everywhere.
- Pension contribution — the percentage you pay in yourself. Tick salary sacrifice if your employer runs the scheme that way.
- Student loan — the plan on your Student Loans Company letters (Plan 4 for Scottish loans).
The headline is your monthly take-home pay; the rows repeat every line monthly and yearly, with the tax split by band.
How take-home pay is worked out
- Pension comes off first: a net pay arrangement reduces taxable income, salary sacrifice reduces National Insurance too.
- Personal allowance of £12,570 is tax-free. It shrinks by £1 for every £2 of income over £100,000 and is nil from £125,140.
- Income tax is charged on the rest slice by slice at the band rates below, so a pay rise never cuts your net pay.
- National Insurance (employee Class 1): 8% on earnings between £12,570 and £50,270 a year, 2% above.
- Student loan: 9% of earnings above your plan’s threshold (6% for a postgraduate loan).
- Take-home pay = salary − pension − tax − NI − student loan, shown per month (÷ 12) and per week (÷ 52).
2026/27 income tax bands
The personal allowance and basic rate limit are frozen, so the bands for England, Wales and Northern Ireland are unchanged from 2025/26:
| Band | Income | Rate |
|---|---|---|
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £137,710 | 40% |
| Additional rate | over £137,710 | 45% |
Scotland raised its starter, basic and intermediate thresholds by 7.4% and froze the rest (Scottish Budget of 13 January 2026, confirmed by the annual Scottish Rate Resolution):
| Band | Income | Rate |
|---|---|---|
| Starter rate | £12,571 – £16,537 | 19% |
| Basic rate | £16,538 – £29,526 | 20% |
| Intermediate rate | £29,527 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £137,710 | 45% |
| Top rate | over £137,710 | 48% |
Both tables assume the standard allowance; the limits apply to taxable income, so the £125,140 line stays put once the allowance tapers away. Savings and dividend income use UK-wide rates everywhere and are not covered here.
The 60% trap
Between £100,000 and £125,140 each extra £2 costs 40p of higher-rate tax and removes £1 of allowance, which is then taxed at 40% — 20p more. The effective rate on that band is 60% (plus 2% NI), higher still in Scotland. Pension contributions reduce adjusted net income, so paying more into a pension is the usual way back under £100,000.
Worked example: £35,000 in England
- Taxable income: £35,000 − £12,570 = £22,430, all in the basic rate band: income tax 20% × £22,430 = £4,486.
- National Insurance: 8% × £22,430 = £1,794.40.
- Take-home pay: £35,000 − £4,486 − £1,794.40 = £28,719.60 a year — £2,393.30 a month or £552.30 a week. Tax and NI take 17.9% of gross pay.
- With a 5% pension by salary sacrifice, taxable and NI-able pay both fall to £33,250: tax £4,136, NI £1,654.40. £1,750 reaches the pension for £1,139.60 less take-home — about £95 a month.
How pension contributions are taken
- Net pay arrangement (most occupational schemes, and the calculator’s default): deducted before tax, so you get full relief at your marginal rate at once, but NI is still due on it.
- Relief at source (personal pensions, NEST): deducted after tax; the provider adds 20% from HMRC and higher-rate taxpayers claim the rest through Self Assessment. Over a year the result matches the default once that relief arrives.
- Salary sacrifice: your contractual salary is cut and the employer pays the difference in, so tax and NI both fall. A lower gross can affect mortgage applications and statutory pay.
Student loan thresholds from 6 April 2026
| Plan | Annual threshold | Rate above it | Who has it |
|---|---|---|---|
| Plan 1 | £26,900 | 9% | Started before September 2012 in England or Wales, or any Northern Ireland loan |
| Plan 2 | £29,385 | 9% | Started 2012–2023 in England or Wales |
| Plan 4 (Scotland) | £33,795 | 9% | Scottish student loans |
| Plan 5 | £25,000 | 9% | Started from August 2023 in England |
| Postgraduate loan | £21,000 | 6% | Master’s or doctoral loan (England and Wales) |
Repayments are worked out per pay period on the same pay as National Insurance, so a bonus month can trigger a deduction even on a salary below the threshold. Plan 5 borrowers start repaying in April 2026; the Plan 2 threshold is frozen at £29,385 until April 2030.
What this estimate leaves out
- Your tax code. The calculator uses 1257L. Company cars, medical cover, underpaid tax, the marriage allowance and the blind person’s allowance change the code and your monthly tax.
- Other income — a second job, rent, interest above the personal savings allowance, dividends or self-employment, all settled through Self Assessment.
- Bonuses and overtime, taxed in the month they are paid, and the High Income Child Benefit Charge from £60,000.
Treat the figures as a planning estimate; your payslip, HMRC’s personal tax account or an accountant give exact numbers. Compare an hourly rate with the salary to hourly calculator, plan spending with the budget calculator, or, for US pay, use the paycheck calculator.
Frequently asked questions
How much is £35,000 after tax in 2026/27?
In England, Wales or Northern Ireland about £28,720 a year — £2,393 a month — after £4,486 of income tax and £1,794 of National Insurance, with no pension or student loan. In Scotland the tax is £4,501, roughly £15 a year more.
Is the personal allowance changing in April 2026?
No. It stays at £12,570 and the basic rate limit at £37,700, so the higher rate still starts at £50,270 of income. Both are frozen until at least April 2028.
Why does Scotland tax me differently?
The Scottish Parliament sets its own rates and bands for earnings, pensions and property income: six bands from 19% to 48%. At £35,000 the difference is small; above £43,662 Scottish taxpayers pay 42% rather than 40%, so the gap widens quickly. National Insurance is UK-wide.
Does a pension contribution reduce National Insurance?
Only through salary sacrifice, which lowers your contractual pay before NI is calculated. Net pay and relief-at-source contributions save income tax but not NI.
Why is my payslip different from this estimate?
Usually because your tax code is not 1257L, you have a company benefit, a bonus or overtime was taxed that month, or your employer uses a different pension method. Check the code on your payslip or in your HMRC account.
Last updated: October 9, 2026