How to Calculate Your After-Tax Income in the UK (2026/27 Calculator)
Home / Calculate Your After-Tax Income
Recent Blog
Arrange a FREE Consultation Call and Let’s Discuss Your Goals!
UK After-Tax Income Calculator
Estimate your take-home pay after Income Tax and National Insurance for 2026/27.
If you earn a salary in the UK, your after-tax income is the amount you have left after Income Tax, employee National Insurance and any other deductions that apply to you. Use the calculator above to estimate your take-home pay for the 2026/27 tax year.
Table of Content:
How Do You Calculate Income After Tax?
To calculate your after-tax income, start with your gross income and work out the deductions that apply to you. For a typical employee, this includes Income Tax and Class 1 National Insurance, with pension contributions, student loan repayments and other deductions potentially reducing the amount you receive.
The basic calculation is:
Gross income − Income Tax − National Insurance − other applicable deductions = take-home pay
The exact result depends on your income, tax year, tax code, where you live and your individual circumstances.
Start with your gross income
Your gross income is the amount you earn before Income Tax, National Insurance and other deductions are taken from your pay.
For an employee, this will usually be your salary plus any other taxable employment income, such as bonuses or overtime.
Work out your Personal Allowance
The standard Personal Allowance for 2026/27 is £12,570. This is the amount of income most people can receive before they start paying Income Tax.
The allowance is reduced for people with adjusted net income above £100,000. It falls by £1 for every £2 of income above £100,000 and can reach zero once adjusted net income reaches £125,140.
Your taxable income is then worked out after taking the applicable allowance and reliefs into account.
Calculate your Income Tax
Income Tax is charged progressively. This means you do not normally pay one tax rate on your entire salary. Different portions of taxable income fall into different tax bands.
For 2026/27, the standard rates for England, Wales and Northern Ireland are:
| Tax Band | Rate |
| Personal Allowance | 0% |
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
The standard thresholds are based on a £12,570 Personal Allowance, with the basic-rate limit at £37,700 and the higher-rate threshold at £50,270.
This is why earning more does not mean your entire salary suddenly gets taxed at the higher rate.
Calculate National Insurance
Income Tax and National Insurance are separate deductions.
Most employees pay Class 1 National Insurance. For 2026/27, the standard employee rate is 8% between the relevant Primary Threshold and Upper Earnings Limit, falling to 2% on earnings above the Upper Earnings Limit.
For most employees, the annualised thresholds are aligned with £12,570 and £50,270 respectively.
Your employer normally deducts employee National Insurance from your pay before you receive it.
Account for other deductions
Income Tax and National Insurance are not necessarily the only amounts taken from your salary.
Your take-home pay can also be affected by things such as:
- Workplace pension contributions
- Student loan repayments
- Postgraduate loan repayments
- Salary sacrifice arrangements
- Other payroll deductions
HMRC’s own employee calculator includes pension contributions and student loan repayments when estimating take-home pay.
UK Income Tax Rates for 2026/27
The Income Tax calculation depends partly on where you live.
England, Wales and Northern Ireland
For 2026/27, the standard Income Tax structure is:
- £12,570 or less: 0%
- £12,571 to £50,270: 20%
- £50,271 to £125,140: 40%
- Above £125,140: 45%
These figures assume the standard £12,570 Personal Allowance. Your actual taxable income can differ if your allowance has been reduced or other adjustments apply.
If your taxable income falls into the higher-rate band, you may pay Income Tax at 40%. Read our guide to the 40% tax bracket to understand when the higher rate applies.
Scotland
Scottish taxpayers have different Income Tax bands for employment income.
For 2026/27, the Scottish rates are:
- Starter rate: 19%
- Basic rate: 20%
- Intermediate rate: 21%
- Higher rate: 42%
- Advanced rate: 45%
- Top rate: 48%
The Scottish thresholds differ from those used in England, Wales and Northern Ireland, so the same gross salary can produce a different Income Tax calculation depending on where you live.
National Insurance on Your Salary
National Insurance is calculated separately from Income Tax and is normally deducted from an employee’s pay through payroll.
For 2026/27, most employees in Class 1 category A pay:
| Earnings | Employee NI rate |
| Up to the Primary Threshold | 0% |
| Between the Primary Threshold and Upper Earnings Limit | 8% |
| Above the Upper Earnings Limit | 2% |
The standard monthly thresholds are £1,048 and £4,189, while the weekly thresholds are £242 and £967.
The exact amount can vary where a different National Insurance category or employment situation applies.
What Can Change Your After-Tax Income?
Two people earning the same gross salary can have different take-home pay. The difference usually comes from their tax circumstances or other payroll deductions.
Your tax code
Your tax code tells your employer how much tax-free income should be taken into account when calculating PAYE deductions. A different tax code can therefore change the amount of Income Tax deducted from your pay.
Pension contributions
Workplace pension contributions can reduce the amount you receive in your payslip. The effect on your tax and National Insurance depends on how your pension contributions are made.
Student loan repayments
If you have a student loan, repayments can reduce your take-home pay once your income reaches the relevant repayment threshold. The amount depends on the repayment plan that applies to you.
Bonuses and overtime
Bonuses, overtime and other taxable employment income can increase your gross earnings and therefore affect your Income Tax and National Insurance deductions.
Where you live
Scottish taxpayers use different Income Tax rates and bands from taxpayers in England, Wales and Northern Ireland. Your location can therefore affect your after-tax income.
Gross Income vs After-Tax Income
Gross income and after-tax income describe two different points in your earnings.
- Gross income is what you earn before Income Tax, National Insurance and other deductions.
- After-tax income is what remains after the relevant taxes and deductions have been taken into account. It is often referred to as net income, net pay or take-home pay.
For example, if your gross salary is £40,000, you will not normally receive £40,000 in your bank account. Income Tax and National Insurance may be deducted, along with other amounts such as pension contributions or student loan repayments if they apply to you.
The difference between gross and take-home pay therefore depends on your individual circumstances rather than your salary alone.
Why Your Payslip May Differ From an Online Calculation
An online calculator provides an estimate based on the information you enter. Your actual payslip can differ if your circumstances are different from the assumptions used by the calculation.
Common reasons include:
- Your tax code has changed
- You receive a bonus or overtime
- You contribute to a workplace pension
- You repay a student or postgraduate loan
- You use a salary sacrifice arrangement
- You have taxable benefits from your employer
- A different National Insurance category applies to you
- Your income or employment circumstances changed during the tax year
PAYE calculations can also change during the year when HMRC updates the information used by your employer.
For this reason, an after-tax income calculator should be treated as an estimate rather than an exact prediction of every payslip.
How We Calculate After-Tax Income
Our calculation is based on the UK tax rules applicable to the selected tax year and the information provided.
For a standard employee calculation, we consider:
- Gross employment income
- Applicable Personal Allowance
- Income Tax bands and rates
- Employee National Insurance
- Relevant pension contributions
- Student loan or postgraduate loan repayments where applicable
- The UK nation in which you are taxed
For 2026/27, the standard Personal Allowance is £12,570. Income Tax rates and bands differ between Scotland and England, Wales and Northern Ireland, while employee National Insurance is calculated separately.
The calculator should make its assumptions clear so that you can understand how the estimated figure has been produced.
If your tax position is more complex, MMBA can help you understand your Income Tax, allowances, deductions and wider personal tax position. Learn more about our personal tax services.
Frequently Asked Questions
How do I calculate my income after tax?
Start with your gross income, determine the Income Tax that applies to your taxable income, calculate employee National Insurance and then account for any other relevant deductions. The amount remaining is your estimated take-home pay.
Is after-tax income the same as take-home pay?
The terms are often used interchangeably, but they can have slightly different meanings. After-tax income can simply mean income after tax, while take-home pay generally refers to what you actually receive after tax, National Insurance and other applicable payroll deductions.
Does National Insurance come out of my salary?
Yes. Employees who are liable for National Insurance normally have their employee National Insurance contributions deducted from their pay through payroll.
Does everyone get the same Personal Allowance?
No. The standard Personal Allowance is £12,570 for 2026/27, but it can be reduced for people with adjusted net income above £100,000. It can be reduced to zero at £125,140.
Does Scotland have different Income Tax rates?
Yes. Scotland has its own Income Tax bands and rates for non-savings, non-dividend income. These differ from the Income Tax structure used in England, Wales and Northern Ireland.
Can pension contributions affect my take-home pay?
Yes. Pension contributions can reduce the amount you receive from your employer, although the tax and National Insurance treatment depends on how the pension contribution is made.
Can student loan repayments affect my take-home pay?
Yes. If you are required to repay a student loan, repayments can be deducted through payroll and reduce your take-home pay. The amount depends on the repayment plan and your income.
Why is my actual take-home pay different from the calculator?
Your payslip may include factors that were not included in the calculation, such as a different tax code, pension arrangement, student loan plan, bonus, taxable benefits or other payroll deductions.