Payslip Calculator — UK PAYE Take-Home Pay
Calculate your take-home pay
2026/27: PA £12,570 (taper above £100k); basic 20% to £50,270; higher 40% to £125,140; additional 45% above. Employee NIC: 8% £12,570–£50,270, 2% above. Assumes standard 1257L code, England/NI/Wales rates.
How a UK payslip works
Your gross pay is split into deductions before you see the net. The biggest are Income Tax and employee National Insurance. Pension contributions usually come off first (under salary sacrifice or auto-enrolment), reducing the amount that gets taxed. Student loan deductions come last, calculated on the salary above the relevant threshold.
- Personal Allowance — £12,570 a year, tax-free. Tapered above £100k income (lose £1 of PA for every £2 over).
- Income Tax — 20% from PA up to £50,270, 40% from £50,270 to £125,140, 45% above. Different rates apply in Scotland.
- Employee NIC — 8% on earnings between £12,570 and £50,270, then 2% above.
- Pension — under auto-enrolment / salary sacrifice, your contribution comes out before tax and NI are calculated. Under “relief at source”, contributions come out after tax and the pension provider claims back basic-rate relief.
- Student loan — only kicks in above the threshold for your plan. Plans 1 & 2 are 9%; Postgraduate is 6%.
Frequently asked questions
Why does my actual payslip look different?
Common reasons: a non-standard tax code (e.g. K-codes, BR, NT, marriage allowance changes), benefits in kind (company car, private medical), childcare vouchers, or post-tax deductions like cycle-to-work. The calculator assumes the standard 1257L code.
What is salary sacrifice and is it worth it?
Salary sacrifice means your employer reduces your gross salary in exchange for a benefit (typically pension contributions or an EV). Because the sacrifice happens before tax and NI, both you and your employer save NIC on the sacrificed amount — usually 8–13% saving for the employee plus 15% for the employer. Worth it for most basic-rate taxpayers.
Do I pay tax on my pension contribution?
If it is auto-enrolment or salary sacrifice, no — you pay tax on the salary AFTER the pension is taken out. If it is relief at source (a private personal pension paid from your bank account), the basic-rate tax has already been deducted, but if you are a higher-rate taxpayer you can claim the extra 20% via self-assessment.
What about Scotland?
Scottish income tax has different bands and rates (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%). NIC and student loan rules are the same UK-wide. This calculator uses England/NI/Wales rates.
I am a director — does this still apply to me?
Director NIC is calculated cumulatively across the year rather than per-period, but the annual totals are the same. For directors of owner-managed companies, our Salary vs Dividend calculator is more relevant than this one.
Want a payroll service for your team?
We run weekly and monthly payroll for businesses across the UK — fixed per-payslip fee, with auto-enrolment, P11Ds and HMRC submissions all included.