🇬🇧 UK Financial Tools · 2026/27

UK Salary Calculator
your exact take-home pay

Professional-grade UK calculators for salary, mortgage, investments, and debt — always up to date for the current tax year.

Updated for 2026/27 tax year Uses official HMRC tax bands No personal data stored Free — always
Salary Calculator
UK take-home pay calculator for 2026/27. Enter your gross salary and details to see your full pay breakdown.
£
37.5h
5%
3%
Advanced: salary sacrifice, child benefit, BIK, marriage allowance
💰 Salary Sacrifice
£
💍 Marriage Allowance
👨‍👩‍👧 Child Benefit Clawback (HICBC)
🚗 Benefits in Kind (P11D)
£
£
Your Pay Breakdown
🏷 Standard personal allowance: £12,570
Your Annual Take-Home
£—
Gross Salary
Income Tax
National Insurance
Student Loan
Your Pension
🏦 Pension Summary
Your contribution (yearly)
Employer contribution (yearly)
Total into pension (yearly)
Daily Rate (5-day week)
Hourly Rate
Effective Tax Rate
🏦

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Where your £1 goes
Take-home
Tax
NI
Pension
SL
Take-home
Income Tax
Nat. Insurance
Your Pension
Student Loan
Employer's view
You cost employer (total)
Employer NI (15%)
Employer pension
Pay distribution
Take-home
Income Tax
NI
Pension
Student Loan
💰 Tax Breakdown By Bracket
Band Rate Your Income in Band Tax Paid
Effective income tax rate
Effective NI rate
Overall effective rate
Salary vs Inflation
Find out if your pay rise is actually making you richer, or just keeping pace with rising prices.
3%
2.6%
5y
Real salary change
Enter your details to see how your purchasing power changes.
Current salary
Salary after rise
Real value (today's £)
Purchasing power lost
Projected salary over 5 years
Nominal Real (today's £)
💡 Optimisation Tips
Based on your salary and situation, here are personalised suggestions to boost your take-home pay or total wealth.
🔍
Enter your salary details above to see personalised tips.
Potential savings summary
Max potential gain
£—
per year, if all suggestions applied
Your current take-home
Optimised take-home
Extra monthly
⚠ Disclaimer: These are illustrative estimates. Tax rules are complex and individual circumstances vary. Always consult a qualified financial advisor or tax professional before making changes.
A Current / Option A
B New Job / Option B
Side-by-side results
● A ● B Δ = B minus A
Take-home splitA vs B
⚖️
Enter salaries above to compare.
🎁 Extras on top of your base salary
£
£
£
Total compensation
Total Gross Package
£—
Base salary
Annual bonus
Overtime earnings
Commission
After-tax reality
Extra tax on extras
Extra NI on extras
You keep from extras
Total take-home
Monthly take-home
💡 Bonus tax reality
Enter a bonus amount to see how much you actually keep.
Tax Year Comparison
See exactly how each year's tax changes affect your take-home. Uses your salary from the main calculator.
Your salary
£45,000
Key changes covered:
  • NI rate: 12% → 8% (two cuts)
  • Personal Allowance frozen at £12,570
2023/24
take-home
2026/27
take-home
What changed
Income Tax
National Insurance
Personal Allowance
Net take-home change
Select a comparison above to see the impact.
Pay Rise Calculator
Find out your exact percentage pay rise, how much more you'll take home after tax, and whether it beats inflation.
£
£
2.6%
5%
Your pay rise
Enter salaries above
Real-terms: —
Current gross
New gross
Gross increase
Current take-home (monthly)
New take-home (monthly)
Extra take-home (monthly)
Extra take-home (annual)
% you keep (after tax)
Real-terms increase (vs CPI)
Enter your current and new salary to see a full breakdown.
How it compares to UK benchmarks
Bank of England target: 2.0%
2024 avg pay rise: ~5.5%
Public sector 2024: ~5.5%
Living wage rise 2024: 9.8%
📚 UK Tax Concepts Explained
Click any concept to expand a plain-English explanation with real examples.
Tax CodeWhat is a Tax Code?
Your tax code tells your employer how much tax to deduct each payday. It's made up of numbers and letters — the number × 10 gives your tax-free personal allowance for the year.
1257L = £12,570 tax-free allowance (1257 × £10)

The letter indicates your situation: L = standard, M/N = marriage allowance, T = under review, S prefix = Scotland, C prefix = Wales. Emergency codes (0T, BR, D0) apply when HMRC has no info.
Income TaxUK Tax Bands Explained
Income tax is charged in bands — only the income within each band is taxed at that rate. You don't pay 40% on everything once you cross the threshold.
£0–£12,570 → 0% (Personal Allowance)
£12,571–£50,270 → 20% (Basic Rate)
£50,271–£125,140 → 40% (Higher Rate)
£125,141+ → 45% (Additional Rate)

£100k trap: Above £100k your personal allowance shrinks by £1 for every £2 earned, creating an effective 60% tax rate between £100k–£125,140.
National InsuranceNI Contributions & Thresholds
National Insurance (Class 1) is paid on earnings above the Primary Threshold. It funds the NHS, state pension, and benefits. It is separate from income tax.
£0–£12,570/yr → 0% (Primary Threshold)
£12,571–£50,270/yr → 8% (main rate, 2026/27)
£50,271+/yr → 2% (above Upper Earnings Limit)

NI is based on weekly or monthly earnings — not annual totals — so variable pay can affect your NI differently to tax. You stop paying NI at state pension age.
Emergency TaxEmergency Tax Codes (0T, BR, W1/M1)
Emergency tax is applied when HMRC doesn't have your tax information — usually when starting a new job without a P45, or after a long employment gap.
BR = Basic Rate (20% on everything)
0T = No allowance, full bands apply
W1/M1 = Week 1 / Month 1 — non-cumulative

You'll usually receive a refund or adjustment within 1–3 months once HMRC updates your record. Check your tax account at gov.uk/check-income-tax.
PensionSalary Sacrifice vs Net Pay Pension
Most workplace pensions use one of two contribution methods. Salary sacrifice is usually more tax-efficient.
Salary sacrifice: reduces gross pay before tax AND NI
→ Save income tax + 8% NI on contributions

Net pay / relief at source: pension deducted after tax
→ Only save income tax (NI still paid)

A basic-rate taxpayer putting £100/month in via salary sacrifice saves ~£28 in tax+NI vs ~£20 via standard deduction.
Student LoanStudent Loan Plans Compared
Student loan repayments depend on your plan — they're not like normal loans. You repay 9% (or 6% for Postgrad) above your threshold, and balances are written off after a set period.
Plan 1: earn >£24,990 → repay 9% above (written off age 65)
Plan 2: earn >£27,295 → repay 9% above (written off after 30yrs)
Plan 4: earn >£31,395 → repay 9% (Scotland, 30yrs)
Plan 5: earn >£25,000 → repay 9% above (written off 40yrs)
Postgrad: earn >£21,000 → repay 6% above (written off 30yrs)

Key insight: Most Plan 2/5 graduates never fully repay — making voluntary overpayments that get written off is wasted money.
Child BenefitHigh Income Child Benefit Charge
Child Benefit is clawed back via a Self Assessment tax charge if either parent earns over £60,000. From 2025/26 the thresholds changed significantly.
Below £60,000 → keep full child benefit
£60,001–£80,000 → 1% clawed back per £200 earned above £60k
Above £80,000 → 100% clawed back (no net benefit)

Child benefit rates: £1,331.20/yr for eldest, £881.80/yr each additional (2025/26). If affected, consider increasing pension contributions to bring adjusted income below £60k.
Benefits in KindCompany Car & P11D Benefits
Benefits in kind (BIK) are non-cash perks your employer provides. They're taxable — HMRC assigns a cash value and you pay income tax on it via your tax code adjustment.
Company car BIK = P11D value × CO₂ rate %
Electric car (0g/km) = 3% BIK rate (2026/27)
Petrol 120g/km = ~27% BIK rate

e.g. £30,000 car at 27% = £8,100 BIK
Basic rate taxpayer: pays £1,620/yr extra tax

Your employer reports all BIK values on a P11D form each April, and HMRC usually adjusts your tax code accordingly.
Fiscal DragWhat is Fiscal Drag?
Fiscal drag happens when tax thresholds are frozen while wages rise with inflation — more people are pulled into higher tax bands without any change in tax rates.
2021: £30,000 salary → comfortably basic rate
2025: £30,000 salary → still basic rate but worth less in real terms
Meanwhile: thresholds frozen until 2028

The OBR estimates fiscal drag will raise billions in extra tax revenue — it's often described as a "stealth tax". Anyone receiving pay rises to keep up with inflation effectively pays more tax without a rate change.

How the UK Salary Calculator works

Understanding your take-home pay can feel surprisingly complicated. Your employer quotes one number — your gross salary — but your bank account tells a different story. This calculator bridges that gap by applying the same rules HMRC uses, so what you see is what you actually get.

The calculation starts with your gross annual salary, then subtracts your Personal Allowance (£12,570 for 2026/27) to find your taxable income. Income Tax is applied in bands: 20% on earnings up to £50,270, 40% on the portion between £50,271 and £125,140, and 45% on anything above. If your income exceeds £100,000, your Personal Allowance tapers away — losing £1 for every £2 earned over that threshold, which creates an effective 60% marginal rate between £100,000 and £125,140.

National Insurance Contributions (NICs) are calculated separately. As an employee you pay 8% on weekly earnings between £242 and £967, and 2% on anything above. Your employer also pays employer NICs — visible here so you can see the full cost of your employment.

If you contribute to a pension, you can enter your contribution as a percentage or fixed amount. Salary sacrifice pensions reduce your gross pay before tax and NI, making them more tax-efficient than relief-at-source arrangements. The calculator handles both methods.

For student loans, repayments depend on your plan. Plan 1 deducts 9% on earnings above £24,990, Plan 2 above £27,295, Plan 4 (Scotland) above £31,395, Plan 5 above £25,000, and Postgraduate above £21,000. If you're on multiple plans, both are calculated simultaneously.

Scottish taxpayers use different bands — the calculator automatically applies the correct rates when you select a Scottish tax code (prefixed S). Welsh taxpayers use the same rates as England and Northern Ireland for now.

What affects your tax code?

Your tax code tells your employer how much of your income is tax-free. 1257L is the standard code for most employees, representing the £12,570 personal allowance. Codes starting with K mean you have additional taxable income (such as untaxed state pension), effectively reducing your allowance below zero. Marriage Allowance codes (M and N) transfer 10% of one partner's personal allowance to the other.

Why results may differ slightly from your payslip

This calculator assumes a straightforward employment situation. Results can vary if you receive irregular bonuses (taxed differently in the pay period they're paid), have been on emergency tax, or your employer uses a different payroll period. Think of the figures as highly accurate estimates rather than guaranteed figures — for exact calculations, speak to your payroll department or a tax professional.

UK Salary Calculator

This salary calculator estimates your take-home pay after UK income tax and National Insurance contributions for the current tax year. Enter your gross salary, tax code, pension contribution and student loan plan to get a complete pay breakdown.

Your take-home pay is your gross salary minus Income Tax, National Insurance (NI), pension contributions, and any student loan repayments. The UK uses a progressive tax system — higher earners pay proportionally more.

Current UK Income Tax Rates (England, Wales & Northern Ireland)

Band Taxable Income Rate
Personal Allowance Up to £12,570 0%
Basic Rate £12,571 – £50,270 20%
Higher Rate £50,271 – £125,140 40%
Additional Rate Over £125,140 45%

What this calculator includes

Frequently asked questions

Related guides

Tax
UK Take-Home Pay 2026/27 — What Changed
Tax
The £100,000 Tax Trap Explained
Pension
Salary Sacrifice — How Much You Save
Tax
National Insurance Explained
Tax
Student Loan Repayment Guide 2026
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