Salary after Income Tax, National Insurance & Student Loan — updated for 2026/27
Where do you live?
Scotland has its own income tax rates and bands set by the Scottish Parliament — different from the rest of the UK. National Insurance is the same UK-wide. Your tax code will start with 'S' if you're a Scottish taxpayer (e.g. S1257L).
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Student loan
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Income tax
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Important: This calculator is for guidance only. It assumes the standard personal allowance (tax code 1257L) and does not account for benefits in kind, marriage allowance, blind person's allowance, or other individual circumstances. Always verify with HMRC or a qualified tax professional. Rates are current for the 2026/27 tax year (6 April 2026 to 5 April 2027).
Your gross salary is what your employer pays you before deductions. Your take-home pay — also called net pay — is what actually lands in your bank account after Income Tax, National Insurance (NI), pension contributions, and any student loan repayments have been deducted. For most UK workers, the difference between gross and net is significant — a £35,000 salary typically results in around £27,000–£28,000 take-home pay. Use this free calculator to see exactly where your money goes, updated for the 2026/27 tax year.
Frequently Asked Questions
What is the personal allowance for 2026/27?
The personal allowance for 2026/27 is £12,570 — the same as it has been since April 2022. This is the amount you can earn before paying any income tax. The allowance has been frozen until at least April 2031, meaning that as wages rise, more people are gradually pulled into higher tax bands — a process known as "fiscal drag." If your income is above £100,000, your personal allowance is reduced by £1 for every £2 earned above that level, disappearing entirely at £125,140.
What are the UK income tax rates for 2026/27?
For taxpayers in England, Wales and Northern Ireland, the rates are: 0% on the first £12,570 (personal allowance); 20% on income from £12,571 to £50,270 (basic rate); 40% on income from £50,271 to £125,140 (higher rate); and 45% on income above £125,140 (additional rate). Scotland has its own six-band system: 19% starter rate, 20% basic, 21% intermediate, 42% higher, 45% advanced, and 48% top rate — set by the Scottish Parliament. These rates are unchanged from 2025/26.
How much National Insurance do I pay?
As an employee in 2026/27, you pay National Insurance (NI) at 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. NI is the same rate across the whole of the UK — Scotland does not have separate NI rates. Your employer also pays NI on your earnings at 15% above £5,000 per year, but this doesn't reduce your take-home pay directly. NI contributions build up your entitlement to the State Pension and certain other benefits.
Does pension affect take-home pay?
Yes — most workplace pensions use salary sacrifice, which means your pension contributions are deducted before tax and NI are calculated. This reduces both your income tax and NI bill, making pension saving more tax-efficient than it might appear. For example, a basic rate taxpayer contributing 5% to a pension on a £35,000 salary saves around £280 per year in combined income tax and NI compared to contributing from net pay. The minimum auto-enrolment contribution is 5% employee plus 3% employer.
Which student loan plan am I on?
Your plan depends on when and where you studied. Plan 1 applies to English and Welsh students who started before September 2012, and all Northern Irish undergraduate students — threshold £26,065. Plan 2 applies to English and Welsh students who started between September 2012 and July 2023 — threshold £29,385 from April 2026. Plan 4 is for Scottish students from 1998 onwards — threshold £32,745, the highest of any plan. Plan 5 is for new English students from August 2023 — threshold £25,000. All plans deduct 9% of income above the threshold through PAYE.
Why does Scotland have different income tax rates?
Since April 2016, the Scottish Parliament has had the power to set its own income tax rates and bands on non-savings, non-dividend income for Scottish taxpayers. Scotland uses a six-band system compared to England's three bands, with lower rates for the lowest earners (19% starter rate vs 20% basic rate in England) but higher rates at the top end (42% higher rate vs 40%, and 48% top rate vs 45%). National Insurance, savings income tax, and dividend tax are UK-wide and the same for everyone regardless of where they live.
What is the effective tax rate and why does it matter?
Your effective tax rate is the percentage of your total income that goes in tax — as opposed to your marginal rate, which is the rate on each additional pound you earn. Because the UK uses a progressive tax system, your effective rate is always lower than your marginal rate. For example, someone earning £50,000 has a 40% marginal rate on income above £50,270, but an effective income tax rate of around 20% because most of their income is taxed at lower rates. Understanding your effective rate helps you see the true cost of earning more or the real benefit of pension contributions.