UK Salary Calculator 2026 — Full PAYE Breakdown
Enter your gross salary and see a complete PAYE breakdown: income tax by band, National Insurance, pension deductions, and your estimated take-home pay for 2026–2027.
Income Details
Your Salary
Enter your income to get started
Your estimated take-home pay, tax, and NI will appear here instantly.
Example estimates · 2026–2027
Nurse, NHS Band 5
Gross £28,407
£23,973/yr
take-home
Software Engineer
Gross £55,000
£42,457/yr
take-home
Teacher (Main Scale)
Gross £31,650
£26,308/yr
take-home
How This Calculator Works
This salary calculator applies the full UK PAYE tax calculation to your gross annual salary. It deducts the Personal Allowance (£12,570), then applies each income tax band progressively — 20% Basic Rate, 40% Higher Rate, and 45% Additional Rate.
National Insurance is calculated separately on the same taxable income: 8% on earnings between £12,570 and £50,270, and 2% above that. If you enter a pension contribution percentage, this is deducted before both income tax and NI (salary sacrifice method) or before income tax only (relief at source).
Scottish taxpayers pay different income tax rates set by the Scottish Parliament. Select Scotland in the Region dropdown to apply the correct 7-band Scottish calculation for 2026–2027, which includes the Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%) rates.
Example Calculation
Example: £45,000/year · England · 2026–2027 · Standard tax code
Income Tax
£6,486
National Insurance
£2,594
Take-Home (Year)
£35,920
Take-Home (Month)
£2,993
Standard tax code 1257L. No pension or student loan deductions in this example.
Frequently Asked Questions
How is PAYE income tax calculated on a salary?
PAYE (Pay As You Earn) tax is calculated cumulatively throughout the tax year. Your employer applies the Personal Allowance (£12,570) and then taxes the remainder at 20% Basic Rate up to £50,270, 40% Higher Rate up to £125,140, and 45% Additional Rate above that.
How much tax do I pay on a £40,000 salary in the UK?
On a £40,000 salary in England (2026–27), you pay approximately £5,486 in income tax and £2,194 in National Insurance, giving an estimated take-home pay of £32,320 per year (£2,693 per month).
How much tax on a £60,000 salary in the UK?
On a £60,000 salary in England (2026–27), you pay approximately £11,432 in income tax and £3,211 in National Insurance. Estimated take-home is around £45,357 per year (£3,780 per month). Note the effective rate rises significantly above £50,270.
Does pension reduce my income tax?
Yes — workplace pension contributions made via salary sacrifice reduce your taxable income before PAYE is calculated. A 5% pension contribution on a £40,000 salary reduces taxable income to £38,000, saving approximately £400 in income tax and £160 in NI.
What is the higher rate tax threshold for 2026–2027?
The Higher Rate threshold remains frozen at £50,270 for 2026–2027. Income above this is taxed at 40%. This threshold has been frozen since 2021–22 and is due to remain frozen until April 2028.
What is an effective tax rate?
Your effective tax rate is the percentage of your total gross income paid in income tax and NI combined. It is always lower than your marginal rate because lower bands are taxed at lower rates. For example, on a £35,000 salary the effective rate is approximately 17.9%, even though some income is taxed at 20%.