Calculate your UK income tax, National Insurance contributions, and take-home pay for the 2026/27 tax year based on official HMRC rates.
| Band | Rate | Taxable | Tax |
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| Deduction | Annual | Monthly |
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UK income tax is a progressive tax calculated on your taxable income after deducting your Personal Allowance. For the 2026/27 tax year (6 April 2026 to 5 April 2027), HMRC applies four bands: a tax-free Personal Allowance of £12,570, a Basic Rate of 20% on income from £12,571 to £50,270, a Higher Rate of 40% from £50,271 to £125,140, and an Additional Rate of 45% on income above £125,140. If you earn over £100,000, your Personal Allowance tapers by £1 for every £2 above that threshold, disappearing entirely at £125,140.
Alongside income tax, employees pay Class 1 National Insurance contributions (NICs). For 2026/27, the employee rate is 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Student loan repayments are calculated as a percentage of income above a plan-specific threshold: Plan 1 charges 9% above £22,015, Plan 2 charges 9% above £27,295, Plan 4 charges 9% above £27,660, and Postgraduate Loans charge 6% above £21,000. These deductions are collected automatically through PAYE.
Salary sacrifice pension contributions reduce your gross pay before tax is calculated, providing immediate tax relief. For example, contributing 5% of a £50,000 salary saves £2,500 from your taxable income, reducing both your income tax and National Insurance liability. This calculator models salary sacrifice deductions so you can see the exact impact on your take-home pay. Based on HMRC 2026/27 rates. Last updated: April 2026.
Consider increasing pension contributions to reduce your tax band, especially if you earn just above £50,270 (the Higher Rate threshold). Checking your tax code annually ensures HMRC has not applied incorrect adjustments. If you receive a bonus, this calculator adds it to your annual salary to show the combined tax impact. Use the results to compare different pension contribution levels and find the optimal balance between retirement savings and monthly income.