Indietax

Take-Home Pay Calculator 2026/27

Updated for the 2026/27tax year · Last updated

Enter your gross annual salary and any deductions to see exactly how much you take home — monthly and annually. Toggle the Scotland switch for Scottish income tax rates.

Your take-home pay is your gross salary minus four main deductions: income tax, employee National Insurance contributions, your pension contribution, and any student loan repayments. Most people have a reasonable sense of their gross salary from their contract, but the interaction between these four deductions — especially pension and student loan — can make the actual net figure harder to predict.

For the 2026/27 tax year, the personal allowance remains at £12,570. Income above this is taxed at 20% (basic rate, up to £50,270), 40% (higher rate, up to £125,140), and 45% above that. Employee Class 1 National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% above. Pension contributions reduce your taxable income, so every pound contributed saves you income tax at your marginal rate — meaning a £500 pension contribution actually costs a basic-rate taxpayer just £400.

Student loan repayments depend on which plan you’re on. Plan 1 deducts 9% of earnings above £24,990; Plan 2 deducts 9% above £28,470; Plan 4 (Scottish borrowers) deducts 9% above £32,745; Plan 5 (new borrowers from August 2023) deducts 9% above £25,000; and the Postgraduate Loan deducts 6% above £21,000. These can run simultaneously if you hold both an undergraduate and a postgraduate loan.

Student loan (tick all that apply)

Annual take-home

£28,720

Monthly take-home

£2,393

ItemAnnual
Gross salary£35,000
Income tax− £4,486
National Insurance− £1,794
Take-home pay£28,720

Effective tax rate (income tax + NI): 17.9%

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How this calculator works

The calculator applies 2026/27 HMRC rates in the following order:

Pension first: Your pension contribution is subtracted from gross salary to produce your taxable income. This is the net pay arrangement used by most workplace pensions — contributions come out before tax is calculated, giving you automatic higher-rate relief if applicable. Personal pension (SIPP) contributions work differently (relief at source), but the net effect on your take-home is equivalent for this calculation.

Income tax: Calculated on taxable income (gross minus pension). The personal allowance of £12,570 applies first. Above that, the 2026/27 band rates are applied: 20% basic, 40% higher, 45% additional. If your income exceeds £100,000, the personal allowance tapers — reducing by £1 for every £2 of excess income — which creates an effective 60% marginal rate between £100,000 and £125,140.

Employee Class 1 National Insurance: NI is calculated on gross salary, not on the pension-reduced taxable income. Employee NI runs at 8% on earnings between £12,570 and £50,270, and 2% above the upper earnings limit. Note that pension contributions do not reduce your NI liability — only income tax.

Student loan:Repayments are calculated on gross income above each plan’s threshold. If you have multiple loans, each is calculated independently and the repayments are stacked. Student loan repayments are not tax-deductible and do not affect your NI or income tax calculation.

Take-home = Gross salary − Pension contribution − Income tax − NI − Student loan repayments.

Frequently asked questions

The calculator deducts income tax (using the 2026/27 bands), employee Class 1 National Insurance, your pension contribution (which reduces taxable income), and any student loan repayments. Employer NI is not shown — that's a cost to your employer, not a deduction from your pay.
Employee pension contributions under a net pay arrangement reduce your taxable income, so you pay less income tax and NI. A 5% contribution doesn't cost 5% of your gross — the actual cost is lower because of the tax relief.
Check whether you have Scottish tax rates enabled, or whether you've selected a student loan plan. Also note that once your income exceeds £100,000, your personal allowance starts to taper, creating an effective 60% marginal rate between £100,000 and £125,140.
No — employer NI is a cost on top of your salary paid by the employer. The calculator shows only employee-side deductions that reduce your take-home pay.