How we calculate take-home pay
Tax year 2026/27 (6 April 2026 to 5 April 2027) · Last reviewed 1 July 2026
Every figure on this site comes from the same open calculation engine. This page sets out the exact rates, thresholds and assumptions behind it so you can check our working.
Income Tax (2026/27, rest of UK)
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | Next £37,700 | 20% |
| Higher rate | Up to £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
The personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000, and is fully withdrawn at £125,140. This creates an effective 60% marginal rate in that band, which our calculators model in full.
Employee National Insurance
| Earnings | Class 1 rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Above £50,270 | 2% |
Student loan thresholds
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Assumptions we make
- Rates are for England, Wales and Northern Ireland. Scottish Income Tax bands are not applied.
- You are an employee paid through PAYE on the standard cumulative tax code.
- Pension contributions are modelled as salary sacrifice, reducing pay before Income Tax and National Insurance.
- Student loan repayments are calculated on earnings after any salary sacrifice.
- Benefits in kind, company cars, bonuses taxed in a single month, and non-standard tax codes are not included.
- Results are rounded for display; the underlying calculation is not rounded until the final figure.
How often this is updated
Rates are reviewed after every UK Budget and at the start of each tax year on 6 April. When thresholds change, the calculators and every affected article are updated together, and the "last updated" date on each page changes to reflect it. If you spot a figure that looks wrong, tell us and we will check it.
Sources
Important
Our calculators give estimates for general guidance. They are not regulated financial, tax or legal advice. For decisions about your own money, speak to a qualified accountant or FCA-regulated adviser.