UK take-home pay is gross salary minus PAYE income tax, Employee National Insurance, student loans (if applicable), and pension. The 2026/27 personal allowance is £12,570, basic rate 20% applies £12,571-£50,270, higher rate 40% applies £50,271-£125,140. HMRC publishes the official rate tables each year.

UK take-home pay has six standard deductions, and getting the order right matters because each layer is calculated on the post-previous-layer figure. The deduction stack runs as follows.

1. Pension contribution (where employer-deducted before tax under a net-pay or salary-sacrifice arrangement) — reduces gross before tax is applied.

2. Income tax (PAYE) on the remaining gross: - Personal allowance: £12,570 at 0% - Basic rate band: £12,571 to £50,270 at 20% - Higher rate band: £50,271 to £125,140 at 40% (with the personal allowance tapering £1 for every £2 of income above £100,000 — creating the notorious 60% marginal trap) - Additional rate: above £125,140 at 45%

3. Employee National Insurance: - Up to £12,570: 0% - £12,570 to £50,270: 8% - Above £50,270: 2%

4. Student loan repayments (if applicable): - Plan 1: 9% above £24,990 — Plan 2: 9% above £27,295 — Plan 4 (Scotland): 9% above £31,395 — Plan 5: 9% above £25,000 — Postgraduate Loan: 6% above £21,000

5. Workplace pension (auto-enrolment minimum is 5% employee + 3% employer of qualifying earnings unless opted out).

6. Salary sacrifice arrangements (cycle-to-work, EV lease, additional pension) — applied to gross, reducing both income tax and NI.

Scotland uses different income tax bands and rates (starter, basic, intermediate, higher, advanced, and top rates ranging from 19% to 48% in 2026/27) — the calculator includes a Scotland toggle to apply the correct schedule.

The calculator outputs annual gross-to-net, monthly cash-in-hand, weekly and daily equivalents, marginal rate on the next £1 earned (revealing the 60% marginal trap between £100k and £125,140), and overall effective rate. For the underlying tax tables and NI thresholds, HMRC's rates and thresholds for employers page on gov.uk is the authoritative source, updated each year at the Budget.