Guide · Updated 2026-10-06
UK Take-Home Pay Explained for 2026/27
How income tax and National Insurance reduce your gross salary, with the main thresholds.
Your take-home pay is what is left after income tax, National Insurance and any pension or student loan deductions. The figures below apply to England, Wales and Northern Ireland. Scotland has different income tax bands.
Income tax
- Personal allowance: £12,570 tax-free
- Basic rate 20% on income up to £50,270
- Higher rate 40% up to £125,140
- Additional rate 45% above that
The personal allowance reduces by £1 for every £2 of income above £100,000.
National Insurance
Employees pay 8 percent on earnings between £12,570 and £50,270 and 2 percent above that. Employer contributions are separate.
Estimate your pay
Enter your salary into the Take-Home Pay Calculator to see yearly, monthly and weekly figures, then convert it with the Salary to Hourly tool.
This is an estimate based on published rates and does not replace advice. Tax codes and benefits in kind change real pay.
Worked example
On a £40,000 salary in England the personal allowance of £12,570 is tax-free. Income tax is 20 percent on the remaining £27,430, which is £5,486. National Insurance is 8 percent on the £27,430 between £12,570 and £40,000, which is £2,194. That leaves about £32,320 a year before pension, student loan or other deductions, or about £2,693 a month.
Things that change your take-home pay
- Pension contributions. Salary-sacrifice and relief-at-source schemes reduce taxable pay differently.
- Student loan repayments. Plans 1, 2, 4 and 5 and the postgraduate loan each take a percentage above their own threshold.
- Tax code. A code other than 1257L changes how much allowance you get, for example when you have a company car or multiple jobs.
- Scotland. Scottish taxpayers have different income tax bands and rates.
Frequently asked questions
Why is my payslip different from the calculator? Payslips include your tax code, pension scheme and any benefits. The calculator assumes a standard code and no other deductions.
Is gross or net salary used in job adverts? Adverts almost always quote gross annual pay, before tax.