UK Take-Home Pay Calculator 2026/27
Estimate your annual and monthly take-home pay after Income Tax, employee Class 1 National Insurance, student loan and pension contributions (England, Wales and Northern Ireland).
Example: £40,000 salary, 5% pension (net pay arrangement), Plan 2: take-home £29,764.25 a year, about £2,480.35 a month. Sources: GOV.UK rates and thresholds 2026 to 2027, GOV.UK student loan repayments.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
Figures used (6 April 2026 to 5 April 2027)
- Personal Allowance £12,570 (reduced £1 for every £2 over £100,000); 20% on the first £37,700 above it, 40% to £125,140, 45% above (England, Wales and NI).
- Employee Class 1 NI (category A): 0% to £12,570, 8% to £50,270, 2% above.
- Student loan: 9% over Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000; Postgraduate Loan 6% over £21,000.
Sources: GOV.UK Rates and thresholds for employers 2026 to 2027, GOV.UK Income Tax rates, GOV.UK How much you repay, checked 22 Oct 2026. Tax codes other than 1257L and multiple undergraduate plans are not modelled. Payroll works out deductions each pay period, so real payslips can differ slightly.
Scottish Income Tax 2026/27
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571–£16,537 | 19% |
| Basic | £16,538–£29,526 | 20% |
| Intermediate | £29,527–£43,662 | 21% |
| Higher | £43,663–£75,000 | 42% |
| Advanced | £75,001–£125,140 | 45% |
| Top | Over £125,140 | 48% |
Source: GOV.UK Scottish Income Tax, rates as of 22 Oct 2026 (bands assume the standard £12,570 Personal Allowance). National Insurance and student loans are UK-wide and unchanged.
Relief-at-source pensions
With relief at source you pay into your pension from take-home pay and your provider claims basic-rate relief of 20% from HMRC, so a £100 contribution costs you £80. That applies even to Scottish starter-rate (19%) taxpayers. If you pay tax above 20%, you can claim the extra through Self Assessment or by contacting HMRC; the calculator gives a rough estimate of that extra relief (your rates above 20% on the gross contribution, ignoring Personal Allowance taper effects) and does not include it in take-home. Source: GOV.UK Tax relief on pension contributions, checked 22 Oct 2026. Enter the pension % as the gross amount going into the pot.
Worked example
£40,000 with a 5% net pay pension: pension £2,000, taxable pay £38,000 − £12,570 = £25,430 at 20% = £5,086.00. NI: 8% of £27,430 = £2,194.40. Plan 2: 9% of £10,615 = £955.35. Take-home £29,764.25.
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Frequently asked questions
What is take-home pay on £40,000 in 2026/27?
About £29,764.25 a year with a 5% net pay pension and a Plan 2 student loan, or £32,319.60 with no pension or student loan.
What are the 2026/27 student loan thresholds?
Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 (9% above each), and Postgraduate Loan £21,000 (6% above), per GOV.UK.
Does salary sacrifice save National Insurance?
Yes. Salary sacrifice lowers the pay that NI and student loan are worked out on. A net pay arrangement only lowers the pay that Income Tax is worked out on.
Does it cover Scotland?
No. Scottish Income Tax bands differ. NI and student loan rules are the same.
Educational information only; not financial, tax, legal, or investment advice.