Net Pay Calculator
Use this free net pay calculator (also known as a net salary calculator) to see exactly how much you take home. Enter your gross annual salary and optional pension contribution to convert gross to net pay after income tax, National Insurance, and pension deductions for the 2026/27 tax year.
What Is Net Pay? (UK 2026/27)
Net pay is the money you actually take home after all deductions have been taken from your gross salary. The formula our net pay calculator uses is simple: net pay = gross salary − income tax − National Insurance − pension − student loan. For UK employees in the 2026/27 tax year, the main deductions are Income Tax and Class 1 National Insurance Contributions (NICs), although most workers will also see a pension contribution deducted if they are automatically enrolled in a workplace scheme, plus a student loan repayment if applicable. Understanding the difference between gross and net pay is essential for personal budgeting, mortgage applications and knowing whether a pay rise is worth what it looks like on paper.
Net pay vs net salary — what's the difference? There is no difference: "net pay" and "net salary" are two names for the same thing — your take-home pay after tax, National Insurance, pension and student loan. So a net salary calculator and a net pay calculator do exactly the same job. People also call it "take-home pay". Whichever term you searched for, the calculator above gives you the same result: your gross salary converted into the amount that actually reaches your bank account.
The UK operates a progressive income tax system with a tax-free Personal Allowance of £12,570 for 2026/27. Income above this threshold up to £50,270 is taxed at the basic rate of 20%, income from £50,271 to £125,140 falls into the higher rate band at 40%, and anything over £125,140 is taxed at the additional rate of 45%. These thresholds are frozen for 2026/27. Once you earn more than £100,000 your Personal Allowance is reduced by £1 for every £2 of income above that threshold, creating an effective marginal tax rate of 60% between £100,000 and £125,140.
National Insurance for employees under state pension age is charged at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), and at 2% on earnings above that. Scottish taxpayers have different income tax bands and rates, with a starter rate of 19% and top rate of 48% — if you live in Scotland, use our Scottish Income Tax Calculator instead. Pension contributions made via salary sacrifice or net-pay arrangements reduce the amount of income that is subject to tax and NI, which is why adjusting your pension percentage in the calculator above directly increases your total take-home when the tax saving is factored in.
Worked Example: £30,000 Gross Salary (Net Pay 2026/27)
On a £30,000 gross annual salary with no pension contribution, your Personal Allowance of £12,570 covers the first slice tax-free. The remaining £17,430 is taxed at the basic rate of 20%, giving an income tax bill of £3,486. National Insurance is charged on the same £17,430 at 8%, coming to £1,394.40. Your total deductions are £4,880.40, leaving a net pay of £25,119.60 per year — approximately £2,093 per month or £483 per week. That is an effective tax-plus-NI rate of about 16.3%. Add a 5% workplace pension (£1,500) and your taxable income falls to £28,500, saving £300 in income tax while £1,500 goes into your retirement pot.
Worked Example: £45,000 Gross Salary
On a £45,000 gross annual salary with no pension contribution, your Personal Allowance of £12,570 covers the first slice tax-free. The remaining £32,430 is all taxed at the basic rate, giving an income tax bill of £6,486. National Insurance is charged on £32,430 at 8%, coming to £2,594.40. Your total deductions are £9,080.40, leaving a net annual pay of £35,919.60 — approximately £2,993 per month or £691 per week. If you contribute 5% to a workplace pension (£2,250), your taxable income drops to £42,750, saving £450 in income tax and slightly reducing your net take-home to around £34,119 — but with £2,250 added to your retirement savings.
Common Reasons Your Net Pay May Differ
Several factors beyond the basic calculation can change your actual take-home pay. Student loan repayments (Plan 1, Plan 2, Plan 4, Plan 5 or Postgraduate) are deducted at 9% above the relevant threshold. If you have a non-standard tax code (anything other than 1257L), your Personal Allowance may be higher or lower. Benefits in kind such as a company car, private medical insurance or a season ticket loan are taxed via your tax code and will reduce take-home pay. Married Couples Allowance, Marriage Allowance transfer and Blind Person's Allowance can all increase your tax-free amount. For a more detailed breakdown including these adjustments, try our UK Salary Calculator or Income Tax Calculator.
Related Calculators
Salary Calculator | Wage Calculator | Tax Calculator | NI Calculator | Pension Calculator | Salary Sacrifice Employer NI Calculator | Ex Gratia Payment Tax Calculator
Net Pay Calculator FAQ
Official Sources
Data verified against official UK government sources. Last checked April 2026.
Quick Answer — UK Net Pay / Net Salary 2026/27
For a £35,000 gross salary in England, Wales or Northern Ireland (2026/27 tax year): you pay £4,486 income tax (20% on £22,430 above the £12,570 Personal Allowance) and £1,794 National Insurance (8% on the same £22,430). Net pay (net salary) is £28,720 a year, or £2,393/month / £552/week. On a £30,000 salary, net pay is £25,120 a year (£2,093/month). Adding a 5% workplace pension (£1,750 on £35k) reduces tax by £350 and gives £27,320 net cash plus £1,750 into your pension pot. Scottish residents pay slightly more income tax — see the dedicated Scottish section below.
How UK Net Pay is Calculated (Step by Step)
Net pay — the cash that lands in your bank account — is your gross salary minus three statutory deductions and any voluntary deductions. The order matters because each deduction is calculated on a different "taxable" base.
- Start with annual gross pay from your employment contract. For PAYE this is the figure on Box 1 of your P60 plus any pre-tax benefits in kind.
- Subtract pension contributions made via "net pay" or salary sacrifice arrangements (these come off BEFORE tax). Relief-at-source contributions don't come off here — they get topped up by HMRC at 20% later.
- Apply the Personal Allowance (£12,570) — the slice of income that is tax-free. If you earn over £100,000, the allowance tapers by £1 for every £2 above, hitting £0 at £125,140 (this creates the well-known 60% effective marginal trap).
- Apply Income Tax bands on the remaining taxable income: 20% basic rate up to £37,700 above the allowance, 40% higher rate up to £125,140 gross, 45% additional rate above. Different bands and rates apply in Scotland.
- Subtract Class 1 National Insurance separately on weekly/monthly earnings between £12,570 and £50,270 (charged at 8%), then 2% on earnings above the Upper Earnings Limit. NI is per-pay-period, not annual, so irregular bonuses can be taxed differently.
- Subtract Student Loan at 9% (Plan 1, 2, 4 or 5) or 6% (Postgraduate Loan) of earnings above the relevant threshold.
- Apply any tax code adjustments — taxable benefits in kind (BIK), prior-year underpayments, or Marriage Allowance transfer modify the standard 1257L code.
HMRC's official methodology is documented in the PAYE Employer Helpbook 490 and the live online manual payroll calculation tables.
2025/26 vs 2026/27 — Thresholds Side-by-Side
The Personal Allowance and basic-rate threshold have been frozen since April 2021 and remain unchanged through April 2028 ("fiscal drag" announced in the November 2022 Autumn Statement). The only year-on-year change for most workers is the Class 1 NI threshold movement with CPI:
| Threshold | 2025/26 | 2026/27 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 (frozen) |
| Basic-rate band ends | £50,270 | £50,270 (frozen) |
| Higher-rate band ends | £125,140 | £125,140 (frozen) |
| NI Primary Threshold (weekly) | £242 | £242 |
| NI Upper Earnings Limit (weekly) | £967 | £967 |
| Class 1 employee rate (PT–UEL) | 8% | 8% |
| Class 1 employee rate (above UEL) | 2% | 2% |
Because thresholds are frozen but wages rise, more workers cross into higher tax bands each year — the technical name is "fiscal drag" and it materially reduces real take-home over time. The Institute for Fiscal Studies estimates this freeze raises an extra £30 billion+ for the Treasury by 2027/28 versus an inflation-indexed system.
National Insurance Class 1 — What Employees Actually Pay
Class 1 employee National Insurance is calculated per pay period (weekly or monthly), not annually. The 2026/27 weekly thresholds (unchanged from 2025/26) are:
- Lower Earnings Limit (LEL): £125/week — earnings between LEL and the Primary Threshold count toward your State Pension qualifying years but are not charged.
- Primary Threshold (PT): £242/week — NI starts here at 8%.
- Upper Earnings Limit (UEL): £967/week — NI drops to 2% on earnings above this point.
The 8% rate (reduced from 12% in January 2024) applies to earnings within the £242–£967 weekly band. A £35,000 salary paid monthly works out to roughly £2,917/month, with NI of about £150/month deducted.
Employees who reach State Pension age stop paying employee Class 1 National Insurance entirely — their gross-to-net calculation changes overnight. Company directors can use an alternative annual cumulative NI calculation method that produces a slightly different result for irregular pay.
Pension Contribution Methods — Why They Affect Net Pay Differently
How your workplace pension takes contributions changes both the headline tax saving and the cash that hits your bank account.
- Net Pay Arrangement (most public-sector and large-employer schemes) — pension comes off gross pay BEFORE income tax. Full tax relief at your marginal rate is given automatically through payroll; no claim needed. NI is still charged on the gross amount.
- Relief at Source (RAS) (most personal pensions and some workplace schemes) — pension is deducted from NET pay, then the provider claims back 20% basic-rate tax relief from HMRC and adds it to your pot. Higher- and additional-rate taxpayers must claim the extra 20% (or 25%) via Self Assessment.
- Salary Sacrifice — you formally reduce your gross salary in exchange for an extra employer pension contribution. This saves BOTH income tax AND National Insurance, and your employer also saves their 13.8% (15% from April 2025) Class 1 secondary NIC. Many employers share that NIC saving back into your pension. Salary sacrifice cannot reduce your pay below National Minimum Wage.
On a £45,000 salary contributing £2,250 (5%): Net Pay arrangement saves £450 income tax; RAS saves the same £450 but you must claim the higher-rate portion; salary sacrifice saves £450 tax PLUS £180 in NI = £630 total saving (and your employer also typically saves £338 in their NI, often shared into the pension).
Student Loan Repayments — All 5 Plans (2026/27)
If you took out a UK student loan, deductions of 9% (or 6% for Postgraduate Loans) of earnings above the relevant threshold come straight off your payslip via PAYE.
| Plan | Who | Annual Threshold | Rate |
|---|---|---|---|
| Plan 1 | Loans before 1 Sep 2012 (England/Wales) or Northern Ireland | £24,990 | 9% |
| Plan 2 | Loans 2012–2023 (England/Wales) | £27,295 | 9% |
| Plan 4 | Scottish student loans | £31,395 | 9% |
| Plan 5 | Loans from August 2023 onwards (England/Wales) | £25,000 | 9% |
| Postgraduate | Master's / PhD loans | £21,000 | 6% |
If you have BOTH an undergraduate plan AND a Postgraduate Loan, deductions stack — 9% above your undergraduate threshold AND a separate 6% above £21,000 for the PG loan. Check your plan number on your loan statement or via the Student Loans Company portal at gov.uk/repaying-your-student-loan.
Worked Examples — £25k / £45k / £75k / £100k / £125k
All figures are for 2026/27, England/Wales/NI tax bands, no pension, no student loan, standard 1257L tax code:
| Gross | Income Tax | NI | Net Annual | Net Monthly | Effective Rate |
|---|---|---|---|---|---|
| £25,000 | £2,486 | £994 | £21,520 | £1,793 | 13.9% |
| £45,000 | £6,486 | £2,594 | £35,920 | £2,993 | 20.2% |
| £75,000 | £17,432 | £3,514 | £54,054 | £4,505 | 27.9% |
| £100,000 | £27,432 | £4,014 | £68,554 | £5,713 | 31.4% |
| £125,000 | £42,432 | £4,514 | £78,054 | £6,504 | 37.6% |
Note the steep jump in effective rate from £100k onwards — that is the Personal Allowance taper (60% marginal rate between £100k and £125,140). Many higher earners deliberately keep their salary just below £100,000 via pension sacrifice to avoid this trap.
Scottish Income Tax — Different Bands
If you live in Scotland, you pay Scottish Income Tax instead of UK rates. The 2025/26 bands set by Holyrood are (carried into 2026/27):
| Band | Range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571–£15,397 | 19% |
| Basic | £15,398–£27,491 | 20% |
| Intermediate | £27,492–£43,662 | 21% |
| Higher | £43,663–£75,000 | 42% |
| Advanced | £75,001–£125,140 | 45% |
| Top | Above £125,140 | 48% |
National Insurance is set UK-wide, so Scottish residents pay the same 8% / 2% NI but higher income tax above £27,491. A £45,000 Scottish salary pays roughly £830 more income tax than the equivalent English salary. The Scottish Government publishes current rates at gov.scot/policies/taxes/income-tax. For a dedicated Scottish calculator use our Scottish Income Tax Calculator.
Other Common Net Pay Deductions
Beyond tax, NI, pension and student loan, several other deductions can reduce your net pay:
- Direct Earnings Attachment (DEA) — DWP-issued debt recovery for benefit overpayments. Standard rate is 5–40% of net earnings, paid via PAYE.
- Attachment of Earnings Order (AEO) — court-issued for unpaid council tax, fines, or civil debt. Rates vary by income band; a protected earnings threshold ensures basic living costs remain.
- Child Maintenance Service (CMS) deductions — collected via PAYE when arrears arise. The CMS calculation itself is separate (see our CMS Payment Calculator).
- Cycle to Work and other salary sacrifice — voluntary sacrifices for tax-advantaged benefits (bikes, EV salary sacrifice, gym, childcare). See Cycle to Work Calculator.
- Trade union subscriptions / professional fees — usually deducted after tax, but the fee may be tax-deductible if claimed on Self Assessment (Approved List 519, Sections 343–344 ITEPA 2003).
- Season ticket loans, payroll giving — pre- or post-tax depending on scheme.
Net Pay Calculator — Frequently Asked Questions (UK 2026/27)
What is net pay?
Net pay is the money you actually take home after all deductions are taken from your gross salary. In the UK the main deductions are income tax, National Insurance, pension contributions and any student loan repayment. A net pay calculator works it out as gross salary − income tax − National Insurance − pension − student loan. Net pay is also called take-home pay or net salary.
How is net pay calculated?
Net pay is calculated as gross pay minus income tax, minus National Insurance, minus pension contributions, minus any student loan repayment. For 2026/27 the first £12,570 (Personal Allowance) is tax-free, 20% applies up to £50,270, 40% from £50,271 to £125,140 and 45% above. Employee National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above £50,270. For a £30,000 salary this gives £3,486 income tax and £1,394 NI, leaving net pay of £25,120 a year (about £2,093 a month).
What's the difference between net pay and gross pay?
Gross pay is your total salary before any deductions. Net pay (also called take-home pay or net salary) is what you actually receive after income tax, National Insurance, pension contributions and any other statutory deductions. For example, a £30,000 gross salary in England gives approximately £25,120 net pay in 2026/27 — a difference of £4,880 in income tax and National Insurance.
What is the difference between net pay and net salary?
None — "net pay" and "net salary" mean the same thing: your take-home pay after income tax, National Insurance, pension and student loan are deducted. A net salary calculator and a net pay calculator do exactly the same job, so it doesn't matter which term you searched for.
What is the UK Personal Allowance for 2026/27?
£12,570. This is the amount you can earn before paying any income tax. It has been frozen at this level since April 2021 and is scheduled to remain frozen until April 2028. Earnings over £100,000 cause the Personal Allowance to taper away by £1 for every £2 above, hitting £0 at £125,140.
How does pension contribution affect my take-home pay?
A net pay or salary sacrifice pension comes off your gross BEFORE tax — you save tax at your marginal rate (20%, 40% or 45%). Salary sacrifice also saves NI (8% or 2%). For a £45,000 earner contributing 5% (£2,250), net pay drops by only £1,800 cash (after the £450 tax saving) but £2,250 goes into the pension pot.
What is the 60% tax trap?
Between £100,000 and £125,140 your Personal Allowance tapers away by £1 per £2 of extra income, on top of the 40% higher-rate tax. This means each extra £1 of gross pay loses 40p in tax and 20p in lost allowance value — an effective 60% marginal rate. Many earners in this band make extra pension contributions to drop below £100,000 and recover the full allowance.
How are bonuses and one-off payments taxed?
Bonuses are taxed at your marginal income tax rate in the pay period they are paid. PAYE estimates annual tax based on extrapolated period earnings, so a large bonus can briefly put you on higher-rate even if your annual salary is below the threshold. HMRC reconciles overpayments automatically through your tax code or a P800 letter after year-end. NI is also per-period, so a one-off bonus can spike NI in that month.
Do bonuses get taxed at 40% even on a low salary?
No — but it can look that way on the payslip. PAYE estimates annual tax based on extrapolated period earnings. A £5,000 bonus paid in one month appears (to PAYE) as if you earn £5,000 × 12 = £60,000/year, triggering higher-rate tax on that payslip. HMRC squares this up automatically at year end. Use HMRC's "Check your Income Tax" service at gov.uk/check-income-tax-current-year to see what has been adjusted.
What is the Marriage Allowance?
Marriage Allowance lets a non-taxpayer or basic-rate taxpayer transfer £1,260 of their Personal Allowance to their spouse or civil partner — saving the higher-earning partner up to £252 a year in tax. Both partners must be UK residents and not in the higher tax band. Claim or backdate up to 4 years at gov.uk/marriage-allowance.
Why does Scotland tax me differently?
Scottish income tax has been devolved to the Scottish Parliament since 2017. Holyrood sets six bands — starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, and top 48% — versus the three UK-wide bands (20%, 40%, 45%). National Insurance remains UK-wide. Scottish residents earning over £27,491 pay more tax than English/Welsh equivalents; below that, slightly less.
How does PAYE work?
Pay As You Earn (PAYE) is the system employers use to calculate, deduct and pay your income tax and National Insurance directly to HMRC each pay period. Your tax code (e.g. 1257L) tells the employer how much Personal Allowance to apply. The system runs on a "cumulative" basis — each payslip looks at your total earnings and tax paid year-to-date and corrects any over/underpayments — which is why your first month of a new tax year (April) often shows different figures than later months.
What does a "K" tax code mean?
A K tax code (e.g. K350) means your tax-free allowance has been reduced below zero — usually because of taxable benefits in kind (company car, fuel benefit, health insurance) or under-paid tax from a previous year. The number after K, multiplied by 10, is added to your taxable pay each year. K350 means an extra £3,500 is treated as taxable income on top of your salary. There is a statutory limit (50% of gross pay) on how much tax a K code can collect in one pay period.
When does an employer have to pay me at least the National Minimum Wage?
Every employee in the UK aged 16 or over is entitled to either the National Living Wage (21+) or the age-banded National Minimum Wage. For April 2025, the National Living Wage is £12.21/hour for those 21+, £10.00 for 18–20, and £7.55 for under-18 and apprentices in their first year. Salary sacrifice cannot bring effective hourly pay below these floors. See gov.uk/national-minimum-wage-rates.
Where can I check what my employer reports to HMRC?
Your Personal Tax Account at gov.uk/personal-tax-account shows live year-to-date earnings, tax paid and the tax code your employer is using. If figures don't match your payslip, contact HMRC on 0300 200 3300 — they can correct an incorrect tax code by issuing a new one to your employer through the Real Time Information (RTI) system.