UrbiTools

Take-Home Pay Calculator UK 2026/27

Work out what you actually keep from your salary in 2026/27 — after income tax, National Insurance and pension — in pounds per month and per year.

Calculate your take-home pay

£2,552.63 per month
£30,631.60 take-home pay per year

Income tax: £5,486.00 (personal allowance £12,570.00); National Insurance: £2,194.40 (8% to £50,270, then 2%); pension: £1,688.00 (your percentage of qualifying earnings, £6,240–£50,270).

Assumes England, Wales or Northern Ireland tax bands, standard 1257L tax code, and no student loan, salary sacrifice or benefits in kind. Scotland has different income tax bands. Tax is calculated on full gross salary (relief-at-source basis for pension).

How take-home pay is worked out

On a £40,000 salary in 2026/27: income tax is 20% of (£40,000 − £12,570) = £5,486; employee National Insurance is 8% of (£40,000 − £12,570) = £2,194.40; a 5% auto-enrolment pension on qualifying earnings (£40,000 − £6,240 = £33,760) is £1,688. Take-home pay is therefore £30,631.60 a year (£2,552.63 a month). Above £50,270, NI drops to 2% while income tax rises to 40% — which is why the marginal rate flips at that threshold.

The £100,000–£125,140 band deserves a warning: as the personal allowance tapers away, each extra £2 of pay loses £1 of allowance, so the effective income-tax rate there is 60%, not 40%. Pension contributions that bring adjusted net income below £100,000 restore the full allowance.

Take-home pay questions

How is take-home pay worked out?
Start with gross salary, deduct income tax (0% on the first £12,570, 20% to £50,270, 40% to £125,140, 45% above), then employee National Insurance (8% between £12,570 and £50,270, 2% above), then your pension contribution. What is left is your take-home pay.
What is the personal allowance in 2026/27?
£12,570 — frozen since 2021/22. It tapers away by £1 for every £2 of income over £100,000, reaching zero at £125,140. That taper is why the effective marginal rate between £100,000 and £125,140 is 60% income tax (plus 2% NI).
Does this calculator work for Scotland?
Not exactly. Scotland sets its own income tax bands (19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top for 2026/27), while National Insurance is UK-wide. This calculator uses the England, Wales and Northern Ireland bands — Scottish results will differ.
How is the pension contribution treated?
The pension percentage you enter is applied to your qualifying earnings — the slice of pay between £6,240 and £50,270 — which is the auto-enrolment basis. Tax is calculated on your full gross salary here (relief-at-source basis); net-pay schemes reduce your taxable pay instead, so results differ slightly. See the pension contribution calculator for the full breakdown.
What isn't included?
Student loan repayments, salary-sacrifice arrangements, benefits in kind, tax-code adjustments (such as a company car or previous underpayment), and Scottish/Welsh rate differences. Your payslip also reflects your tax code, which may differ from the standard 1257L.

Guide & related calculators

Pension Contribution CalculatorAuto-enrolment minimums: 8% total, 3% employer, 5% employee on qualifying earnings.Maternity Pay Calculator90% for 6 weeks, then £194.32 a week or 90% for 33 weeks.Sick Pay CalculatorStatutory sick pay from day one: £123.25 a week or 80% of earnings.Holiday Pay Calculator5.6 weeks' entitlement and 12.07% accrual for irregular hours.Redundancy Pay CalculatorStatutory redundancy pay with 2026/27 rates and year-by-year breakdown.

Sources & official guidance

Estimate only — not legal or financial advice. Rates: 2026/27, England, Wales & Northern Ireland. See our disclaimer.