UK take-home pay in 2026/27: how income tax and National Insurance are worked out
How UK income tax and National Insurance turn a salary into take-home pay in the 2026/27 tax year, with worked examples, the £100,000 trap and student loans.
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Tools for this job: Take-Home Pay Calculator · Salary Calculator · Percentage Calculator
A UK salary of £30,000 does not mean £2,500 a month in your account. Income tax and National Insurance come off first, and possibly a pension contribution and student loan repayments. Here is how the main deductions work for an employee in the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027.
Income tax (England, Wales and Northern Ireland)
- The first £12,570 is tax-free — the Personal Allowance.
- Income above that up to £50,270 is taxed at 20% (basic rate).
- From £50,270 to £125,140 it is taxed at 40% (higher rate).
- Above £125,140 it is taxed at 45% (additional rate).
Each rate applies only to the slice of income in its band. Earning one pound over £50,270 does not put your whole salary into the 40% band — only that pound. Scotland sets its own income tax bands, six of them, from 19% to 48%.
National Insurance
Employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above that. It is worked out on pay, not on taxable income, and applies across the whole of the UK.
A worked example: £30,000
- Taxable income: £30,000 − £12,570 = £17,430.
- Income tax: £17,430 × 20% = £3,486.
- National Insurance: £17,430 × 8% = £1,394.40.
- Take-home: £30,000 − £3,486 − £1,394.40 = £25,119.60 a year, or £2,093.30 a month.
Take-home pay at different salaries
Take-home pay in England, Wales and Northern Ireland, with no pension contributions or student loan:
| Salary | Yearly | Monthly |
|---|---|---|
| £25,000 | £21,519.60 | £1,793.30 |
| £30,000 | £25,119.60 | £2,093.30 |
| £50,000 | £39,519.60 | £3,293.30 |
| £60,000 | £45,357.40 | £3,779.78 |
| £100,000 | £68,557.40 | £5,713.12 |
The Take-Home Pay Calculator shows the same breakdown for any salary, with Scottish rates, pensions and student loans.
The £100,000 trap
The Personal Allowance shrinks by £1 for every £2 of income above £100,000, and disappears completely at £125,140. In that range, each extra £1 of salary is taxed at 40% and also removes 50p of tax-free allowance, which is then taxed at 40% as well. With National Insurance at 2%, the combined rate on income between £100,000 and £125,140 is about 62%. A salary of £125,140 leaves £78,110.60 — only about £9,550 more than £100,000 does.
Pension contributions reduce the income used for this test, which is why people in that band often pay more into their pension.
Pension contributions
- Salary sacrifice reduces your pay itself, so it saves income tax and National Insurance.
- Net pay arrangements take the contribution before income tax, but not before National Insurance.
- Relief at source takes the contribution from your taxed pay, and the pension provider adds 20% basic-rate relief on top.
Your payslip or employer will tell you which scheme you are in.
Student loans
Repayments are 9% of your pay above a threshold that depends on your plan: £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. Postgraduate loans are 6% above £21,000, on top of any undergraduate repayment.
Why your payslip is different
Payroll works out tax each pay period using your tax code — 1257L for most people, which reflects the £12,570 allowance. Benefits such as a company car, an emergency tax code after changing jobs, bonuses and underpaid tax from earlier years all change the figures. The calculator shows the full-year position for a single job with no other income; it is an estimate, not tax advice. For your own position, check your payslip and your personal tax account with HMRC.