UK net salary calculator 2026
The calculator works out your take-home pay under PAYE for tax year 2026-27 (6 April 2026 – 5 April 2027). It deducts Income Tax at the rates set by HMRC (20 % basic, 40 % higher, 45 % additional; Scottish rates differ), Class 1 employee National Insurance (8 % PT–UEL, 2 % above UEL), any pension salary sacrifice, Net Pay Arrangement pension contributions, and student loan repayments. All thresholds and rates come from official HMRC and GOV.UK sources.
| Gross salary | £3,000.00 |
| Income Tax (PAYE) | -£390.50 |
| National Insurance (Class 1) | -£156.20 |
| Net pay (take-home) | £2,453.30 |
Effective deduction rate 18.2 % · of which income tax 13.0 %
How this is calculated
- Deduct any pension salary sacrifice from gross salary to get adjusted gross — salary sacrifice reduces both Income Tax and National Insurance (Class 1) because the contractual pay is reduced before tax.
- Calculate Class 1 employee National Insurance on the adjusted gross: 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), then 2% on everything above £50,270.
- Subtract any Net Pay Arrangement pension contributions from the adjusted gross to reach Adjusted Net Income (ANI), then calculate the Personal Allowance — the full £12,570 is available up to ANI of £100,000, tapering to zero at £125,140 (£1 withdrawn for every £2 over £100,000).
- Apply PAYE Income Tax to taxable income (ANI minus Personal Allowance) using rUK bands — 20% basic rate up to £37,700, 40% higher rate from £37,701 to £112,570, 45% additional rate above £112,570 — or the six Scottish bands (19%/20%/21%/42%/45%/48%) for Scottish taxpayers.
- Calculate student loan deductions separately for each plan on gross earnings above the plan threshold (Plan 1 £26,900 at 9%; Plan 2 £29,385 at 9%; Plan 4 £33,795 at 9%; Plan 5 £25,000 at 9%; Postgraduate £21,000 at 6%); round each deduction down to the nearest whole pound.
- Take-home pay equals gross salary minus salary sacrifice, minus National Insurance, minus Income Tax, minus any student loan deductions — all figures calculated on an annual basis as an approximation of the cumulative PAYE result.
FAQ
What does salary sacrifice do to my tax and National Insurance?
Salary sacrifice reduces your contractual pay before tax is calculated. Because both Income Tax and National Insurance are assessed on the reduced figure, you save tax at your marginal rate and save National Insurance at 8% (or 2% above £50,270) on the sacrificed amount. This makes salary sacrifice more efficient than a personal pension contribution made after tax.
Why is my effective tax rate not the same as the basic rate band I am in?
Your effective rate is total tax divided by gross salary, which is always lower than the marginal rate of the band your top slice of income falls into. The Personal Allowance (£12,570 for most people) means the first portion of your income is tax-free, pulling the average down. National Insurance is also a separate deduction and is not part of the income tax rate.
I earn between £100,000 and £125,140 — why does the calculator show a very high marginal rate?
In this range your Personal Allowance is withdrawn at £1 for every £2 of Adjusted Net Income above £100,000. Combined with the 40% higher rate, the effective marginal rate on an extra pound of income is 60% for rUK taxpayers (67.5% for Scottish taxpayers in their advanced band). Pension contributions that reduce Adjusted Net Income below £100,000 can recover the full Personal Allowance.
How does the calculator handle multiple student loan plans?
Each plan calculates independently against its own threshold and rate. The deductions are then added together. For example, if you hold both a Plan 2 undergraduate loan and a Postgraduate loan, the calculator applies 9% above £29,385 and 6% above £21,000 simultaneously and sums both deductions.
Does the calculator cover Scotland?
Yes — selecting Scotland applies the six Scottish income tax bands (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%) instead of the three rUK bands. National Insurance is not devolved and is identical in both regions. Scottish residency is determined by where your main home is, not your employer's location.
Official sources
Data last verified 2026-07-17 · tax year 2026 · 104 sourced values
Every rate, threshold and formula is read from a versioned dataset of official primary sources — no numbers are hardcoded. Values without a published 2026 primary source are flagged, never guessed.
12 sources
- HMRC / GOV.UK — Income Tax rates and Personal Allowances
- HMRC / GOV.UK — Income Tax Personal Allowance and the basic rate limit — thresholds from 6 April 2026 to 5 April 2028
- HMRC / GOV.UK — Scottish Income Tax
- HMRC / GOV.UK — Rates and thresholds for employers 2026 to 2027
- HMRC / GOV.UK — Tax on dividends
- HMRC / GOV.UK — Income Tax rates and allowances — current and past
- HMRC / GOV.UK — National Insurance rates and categories
- HMRC / GOV.UK — Rates and allowances: National Insurance contributions
- HMRC / GOV.UK — Special rules for student loans
- HMRC / GOV.UK — 2026-27 student and postgraduate loan deduction tables (SL3)
- HMRC / GOV.UK — Pension schemes: rates and allowances
- DWP / GOV.UK — Review of the automatic enrolment earnings trigger and qualifying earnings band for 2026/27
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
United Kingdom tax guides
- How Income Tax Works in the UK (2026-27): Bands, Allowances and Rates →
- Employee National Insurance in the UK (2026-27): Rates, Thresholds and State Pension →
- Self-Employed Tax in the UK (2026-27): Income Tax, Class 4 NI and Self Assessment →
- How VAT Works in the UK (2026-27): Rates, Registration Threshold and Calculations →
- Debt Relief & Personal Insolvency in the United Kingdom (2026): How It Works →