đŹđ§ United Kingdom Wage After Tax Calculator 2026/27
Calculate your exact UK take-home pay. Includes Income Tax (PAYE), National Insurance (NIC), pension contributions, student loan, and Scottish/Welsh rates - all updated with official HMRC 2026/27 rates.
Tax Rate
| Component | Annual (£) | Monthly (£) | % of Gross |
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đŹđ§ UK Wage After Tax - Complete 2026/27 Guide
The UK uses a PAYE (Pay As You Earn) system with three income tax bands. For 2026/27, the Personal Allowance remains frozen at 12,570 pounds. Most workers also pay National Insurance Contributions (NIC) at 8 percent on earnings between 12,570 and 50,270 pounds, and 2 percent above that.
2026/27 UK Income Tax Bands (England, Wales and Northern Ireland)
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to 12,570 pounds | 0% |
| Basic Rate | 12,571 to 50,270 pounds | 20% |
| Higher Rate | 50,271 to 125,140 pounds | 40% |
| Additional Rate | Above 125,140 pounds | 45% |
Note: Personal Allowance tapers by 1 pound for every 2 pounds of income above 100,000 pounds - creating a 60 percent effective marginal rate between 100,000 and 125,140 pounds.
2026/27 National Insurance (Employee Class 1)
| Band | Earnings | NI Rate |
|---|---|---|
| Below Primary Threshold | Up to 12,570 per year | 0% |
| Main Rate | 12,571 to 50,270 per year | 8% |
| Above Upper Earnings Limit | Above 50,270 per year | 2% |
2026/27 Scottish Income Tax Bands
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | Up to 12,570 pounds | 0% |
| Starter Rate | 12,571 to 16,537 pounds | 19% |
| Basic Rate | 16,538 to 29,526 pounds | 20% |
| Intermediate Rate | 29,527 to 43,662 pounds | 21% |
| Higher Rate | 43,663 to 75,000 pounds | 42% |
| Advanced Rate | 75,001 to 125,140 pounds | 45% |
| Top Rate | Above 125,140 pounds | 48% |
How UK PAYE Works
Step 1 - Pension Salary Sacrifice
If you contribute to a workplace pension via salary sacrifice, this reduces both your taxable income and your National Insurance. This is the most tax-efficient way to save for retirement in the UK.
Step 2 - Personal Allowance
Everyone gets 12,570 pounds tax-free (2026/27). This tapers to zero for income above 100,000 pounds. Tax code 1257L represents this standard allowance on your payslip.
Step 3 - Income Tax (PAYE)
Tax is deducted at source by your employer. Basic rate 20 percent, higher rate 40 percent, additional rate 45 percent. Scottish taxpayers have different rates (19 to 48 percent across 7 bands).
Step 4 - National Insurance
Employee NI is 8 percent on earnings between 12,570 and 50,270 pounds, and 2 percent above. Rates unchanged from 2025/26. Employer NI is 15 percent (not deducted from your pay).
Student Loan Repayments
Repaid via PAYE at 9 percent above the plan threshold. Plan 1: 24,990 pounds. Plan 2: 29,385 pounds. Plan 5 (new graduates): 25,000 pounds. Postgraduate: 6 percent above 21,000 pounds.
The 100K Trap
Income between 100,000 and 125,140 pounds faces a 60 percent effective marginal rate because each extra pound removes 50p of personal allowance (taxed at 40 percent) plus 40 percent on the extra pound itself. Pension contributions are the key solution.
What This Calculator Includes
- Income Tax - England/Wales/NI rates (20/40/45 percent) and Scottish rates (19 to 48 percent)
- National Insurance Class 1 - 8 percent and 2 percent with correct thresholds
- Personal Allowance taper above 100,000 pounds (60 percent marginal rate trap)
- Pension contributions - salary sacrifice (reduces tax and NI)
- Student Loan Plans 1, 2, 4, 5 and Postgraduate
- Blind Person Allowance
- All pay periods - annual, monthly, 4-weekly, bi-weekly, weekly, daily, hourly
- 19-country salary comparison
- Salary rank vs UK average and minimum wage