Salary Calculator
Work out your real take-home pay after UK income tax, National Insurance, and pension.
Take-Home Pay Calculator
Your £35,000 breakdown
Annual Take-Home
£27,320
Monthly Take-Home
£2,277
Weekly Take-Home
£525
Income Tax
£4,136
National Insurance
£1,794
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Salary Breakdown Chart
Calculator Methodology
Based on 2024/25 HMRC tax thresholds: Personal Allowance £12,570, Basic Rate 20% up to £50,270, Higher Rate 40% up to £125,140, Additional Rate 45% above. NI at 8% between £12,570–£50,270 and 2% above. Results are for illustrative purposes only and do not constitute financial advice. Tax laws and rates may change. Last verified: October 2026.
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Financial Support If You're Self-Employed
How income tax and National Insurance work, and where to get help managing your money.
Video courtesy of MoneyHelper, a free and impartial UK government-backed money guidance service.
How UK Salary Tax Works
Click through to understand each deduction step-by-step
Gross Salary
This is your total annual salary before any deductions.
Example:
£35,000
💡 Tip: This is the figure you negotiate with your employer.
Step 1 of 6
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How UK take-home pay works
Worked example: a £45,000 salary
On a gross salary of £45,000 with a 5% contribution, you would take home about £34,120 a year, or £2,843 a month. Tax and mandatory contributions take roughly 19% of gross pay.
| Gross salary | £45,000 |
| Income Tax | -£6,036 |
| National Insurance | -£2,594 |
| Pension (5%) | -£2,250 |
| Take-home pay | £34,120 |
PAYE and your tax code
Most UK employees are taxed through PAYE. Your employer takes Income Tax and National Insurance from every payslip and passes it to HMRC. Your tax code tells them how much of your pay is tax free. The standard code for 2026/27 is 1257L, which matches the £12,570 Personal Allowance. If your code looks different, it is worth finding out why, because a wrong code means you are paying too much or too little.
The 60% trap between £100,000 and £125,140
Your Personal Allowance shrinks by £1 for every £2 you earn over £100,000. That means income in this slice is effectively taxed at 60%. Paying more into your pension is the most common way to bring taxable income back under £100,000 and keep the allowance.
What this estimate leaves out
The calculator uses England, Wales and Northern Ireland bands. Scotland sets its own Income Tax bands, so Scottish taxpayers will see a different figure. Student loan repayments and benefits in kind are not included. The pension slider reduces taxable income for Income Tax only. If your employer uses salary sacrifice, you may also save National Insurance, so your real take-home could be slightly higher.
Common questions from UK employees
Does this include student loan repayments?
No. Repayments are a percentage of income above a threshold that depends on your plan. Work yours out separately and deduct it from the take-home figure.
Why is my payslip slightly different?
Payslips can include benefits in kind, a different tax code, salary sacrifice or Scottish rates. The calculator shows a standard annual picture.
Can a partner share their allowance with me?
Yes, through Marriage Allowance. If one of you earns less than the Personal Allowance, they can transfer £1,260 of it to a basic rate paying partner, worth up to £252 a year.
Related: Student loan calculator, Pension calculator
How the UK Salary Calculator Works
This free UK salary calculator shows your exact take-home pay after tax for the 2026/27 tax year. Enter your annual gross salary and pension contribution percentage, the calculator instantly breaks down your Income Tax, National Insurance (NI), and net pay on an annual, monthly, and weekly basis.
All figures are calculated against the latest HMRC tax bands and thresholds for 2026/27, including the current £12,570 Personal Allowance, 20% Basic Rate, 40% Higher Rate, and 45% Additional Rate. National Insurance uses the current 8% rate between £12,570 and £50,270.
UK Income Tax Bands 2026/27
| Band | Taxable Income | Tax 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% |
Note: The Personal Allowance reduces by £1 for every £2 earned over £100,000, reaching £0 at £125,140.
National Insurance Rates 2026/27
National Insurance (NI) is a separate deduction from Income Tax. For employees (Class 1 NI), the rates for 2026/27 are:
Below £12,570
0%
Lower Earnings Limit
£12,570 – £50,270
8%
Main NI rate
Above £50,270
2%
Upper Earnings Limit
How Pension Contributions Reduce Your Tax
Contributing to a workplace pension (under a salary sacrifice or relief-at-source scheme) reduces your taxable income, which means you pay less Income Tax and National Insurance. This makes pension contributions extremely tax-efficient, especially for higher rate taxpayers.
Example: Salary £50,000, Pension 5%
Without pension
Taxable income: £37,430
Income tax: £7,486
NI: £3,028
Take-home: £39,486
With 5% pension
Taxable income: £34,930
Income tax: £6,986
NI: £2,828
Take-home: £37,686 + £2,500 pension
UK Average Salaries by Industry (2026)
The UK median full-time salary is approximately £35,000–£37,000 per year. However, this varies significantly by sector, region, and experience:
Finance & Banking
£55,000+
Technology / IT
£50,000+
Healthcare (NHS)
£32,000–£45,000
Teaching
£30,000–£42,000
Retail & Hospitality
£24,000–£30,000
Construction
£35,000–£50,000
Source: ONS Annual Survey of Hours and Earnings (ASHE). Figures are approximate and vary by location and experience.
Legal Ways to Reduce Your Tax Bill
- ✓
Increase pension contributions
Salary sacrifice reduces taxable income, saving both Income Tax and NI contributions.
- ✓
Claim tax relief on expenses
Work-related expenses not reimbursed by your employer, tools, uniform, professional subscriptions, can be claimed via HMRC.
- ✓
Use your ISA allowance
Save or invest up to £20,000/year tax-free. No tax on interest, dividends, or capital gains.
- ✓
Claim Marriage Allowance
If your partner earns less than £12,570, transfer up to £1,260 of their Personal Allowance to you, saving up to £252/year.
- ✓
Check your tax code
Millions of people are on the wrong tax code. An incorrect code could mean you're overpaying, check yours at gov.uk.
⚠️ Important Disclaimer
This calculator uses 2026/27 HMRC tax thresholds for England, Wales, and Northern Ireland. Scottish taxpayers are subject to different income tax rates set by the Scottish Parliament. This tool is for illustrative purposes only and does not constitute financial or tax advice. For personalised advice, consult a qualified accountant or tax adviser. Data last verified July 2026.
Worked Example: £40,000 in England
After the £12,570 Personal Allowance, £27,430 is taxable. Income Tax at 20% is £5,486. National Insurance at 8% on the same £27,430 is £2,194.40. Take-home pay is £32,319.60 a year, or about £2,693 a month. This ignores pension and student loan deductions.
Frequently Asked Questions
Why is my take-home pay lower than the calculator?
Pension contributions, student loan repayments, benefits in kind and a different tax code all change the figure.
Are Scottish tax bands different?
Yes. Scotland sets its own Income Tax bands, so use the Scotland option if you live there.
What is the difference between gross and net pay?
Gross is your salary before deductions. Net is what reaches your bank account after tax and National Insurance.
Frequently Asked Questions
How is take-home pay calculated?
Take-home pay is your gross salary minus income tax, National Insurance contributions, and any pension contributions.
What are the UK income tax bands?
For 2026/27: 0% on first £12,570 (personal allowance), 20% basic rate up to £50,270, 40% higher rate up to £125,140, 45% additional rate above.
What is National Insurance?
NI is 8% on earnings between £12,570–£50,270 and 2% above that (Class 1 employee rates for 2026/27).
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- Gross vs Net Income
- Gross income is your pay before deductions; net (take-home) pay is what lands in your bank after income tax, National Insurance, pension contributions and student loan repayments.
- Personal Allowance
- The amount of income you can earn each tax year before paying income tax, £12,570 for most people in the UK. It is reduced by £1 for every £2 earned above £100,000.
- National Insurance (NI)
- A UK payroll contribution that funds the State Pension and some benefits. Employees pay Class 1 NI on earnings above the primary threshold, deducted automatically through PAYE.
- Tax Band
- The income ranges taxed at different rates. In England, Wales and NI: basic rate 20%, higher rate 40% (above £50,270) and additional rate 45% (above £125,140). Scotland uses its own bands.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
