Loading...
This calculator is designed for UK employees, contractors, and freelancers who want to understand exactly how much of their salary they take home after tax.
Every UK payslip deducts Income Tax, National Insurance, pension contributions, and sometimes student loan repayments before your salary reaches your bank account. The exact amounts depend on your tax code, earnings bracket, and personal circumstances — and getting them wrong can cost you hundreds of pounds a year.
Our free calculator uses the confirmed 2026/27 HMRC rates and thresholds to give you a personalised breakdown in seconds — covering Scottish and English tax bands, salary sacrifice pensions, and Child Benefit clawback.
£12,570
Personal Allowance
20%
Basic Rate
£50,270
Higher Rate Threshold
8%
Employee NI Rate
One of the most common mistakes we see is people thinking that crossing into the Higher Rate means their entire salary is taxed at 40%. In reality, the UK uses a progressive system — only the portion above each threshold is taxed at the higher rate. On a £55,000 salary, just £4,730 is taxed at 40%; the rest stays at 20% or 0%. This single misunderstanding leads many workers to turn down pay rises or avoid crossing tax bands unnecessarily.
On a £35,000 salary, you only pay 20% on the £22,430 above your Personal Allowance — not on the full £35,000.
Scottish taxpayers pay six rates instead of three. At £35,000, a Scottish worker pays roughly £200 more per year than an English worker on the same salary. Full comparison →
Unlike Income Tax, National Insurance rates are the same across England, Scotland, Wales, and Northern Ireland. NI is calculated separately from tax and funds the State Pension, NHS, and other benefits.
Combined with 20% Basic Rate tax, a typical employee loses roughly 28% of every pound earned above £12,570. Higher Rate taxpayers face a combined 42% marginal rate (40% tax + 2% NI) above £50,270.
Every salary level hits different tax brackets. Here's how three common situations play out after all deductions:
Basic Rate Taxpayer
James pays 20% tax on everything above £12,570. His salary sacrifice pension saves him £258 in NI compared to relief at source.
Higher Rate Taxpayer
Nick crosses into the 40% band. His Plan 2 student loan repays 9% of earnings above the £29,385 threshold. Increasing his pension to 8% would pull him below the Higher Rate threshold.
60% Tax Trap
Mike loses £5,000 of Personal Allowance due to the 60% tax trap. A £10,000 salary sacrifice pension would restore his full allowance and save ~£6,000 in tax.
Figures are estimates using default 2026/27 HMRC rates with salary sacrifice pensions on qualifying earnings. Run your own numbers for a personalised breakdown.
In-depth, HMRC-sourced guides to help you understand your pay, plan your finances, and keep more of what you earn.
What 1257L, BR, D0, and K codes mean — and how to check your payslip is correct for the 2026/27 tax year.
Read guide →Tax PlanningEarning over £100k? How the Personal Allowance taper creates a hidden 60% rate — and proven strategies to avoid it.
Read guide →PensionsSalary sacrifice, relief at source, the £60k Annual Allowance, and how Higher Rate taxpayers can reclaim unclaimed relief.
Read guide →Regional TaxSide-by-side comparison of Scotland's six Income Tax bands vs England's three, with worked examples at key salary levels.
Read guide →Student LoansPlans 1–5 thresholds, monthly repayment examples, write-off dates, and whether voluntary overpayments make sense.
Read guide →Family BenefitsHow the High Income Child Benefit Charge works from £60k, worked examples, and pension strategies to keep your benefit.
Read guide →New to tax jargon? Browse our Tax Glossary
Have a tax question? Read our FAQ
We are a UK-based team that builds this tool using publicly available HMRC data and validates every result against real payroll software. In 2026, we benchmarked our calculator against 50 genuine UK payslips across various income levels — including Scottish taxpayers, student loan repayments, Marriage Allowance, and HICBC scenarios.
Every calculation runs entirely in your browser — we never store or transmit your salary data. When HMRC confirmed the 2026/27 rates in December 2025, we updated all thresholds within hours and re-tested every edge case. Each article is reviewed by Joanna, our co-founder with a Master's degree in Finance and a background in Accounting.
Sources: HMRC Income Tax rates · NI rates and thresholds · Student loan repayment thresholds