What is the UK personal allowance for 2026-27?

The personal allowance is £12,900 for the 2026-27 tax year. This is the amount you can earn tax-free each year. If you earn more than £12,900, you pay Income Tax on the excess. The personal allowance is reduced if you earn over £100,000 (you lose £1 of allowance for every £2 earned above £100,000). Use the [UK take-home pay calculator](/tools/finance/take-home-pay-uk) to see your exact tax liability.

How does National Insurance work in the UK?

National Insurance is a tax on earnings that funds state benefits and the NHS. For employees, you pay Class 1 contributions: 12% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. If you earn below £12,570, you pay no National Insurance. The calculator applies current NI rates to show your total annual and monthly contributions.

What is a tax code and how do I find mine?

Your tax code tells your employer how much tax to deduct from your pay. The most common code is 1290L, which gives the standard personal allowance of £12,900. You can find your tax code on your payslip, P60, or a notice from HMRC. If your code is different, it may account for benefits in kind, second jobs, or unpaid tax from previous years. Enter it exactly as shown in the calculator.

When do I start paying back my student loan?

You start repaying when your income exceeds the plan threshold for your loan type. Plan 1 starts at £22,015, Plan 2 at £27,295, Plan 4 at £27,660, and Postgraduate Loan at £21,000. If you earn below the threshold, you pay nothing. Repayments are 9% of income above the threshold for undergraduate loans, and 6% for Postgraduate Loans. The [take-home pay calculator](/tools/finance/take-home-pay-uk) shows your exact monthly repayment.

How much should I contribute to my workplace pension?

The legal minimum is 8% of qualifying earnings: your employer contributes at least 3%, and you contribute at least 5%. Many employers offer higher contributions if you match them. Pension contributions are deducted before tax, so a 5% contribution costs you less than 5% of your gross salary. The calculator shows how pension contributions affect your take-home pay.

Why is my take-home pay lower than I expected?

The main deductions are Income Tax (20% to 45% on income above your personal allowance) and National Insurance (12% on most earnings). Add pension contributions and student loan repayments, and you can lose 30% to 40% of your gross salary. The [UK take-home pay calculator](/tools/finance/take-home-pay-uk) breaks down each deduction so you see where the money goes.

What happens if I have two jobs?

Your personal allowance applies to only one job, usually your main job. Your second job is taxed at the basic rate (20%) from the first pound earned, with no personal allowance. You also pay National Insurance on the second job if it pays over £12,570. Enter your second job income using a BR (Basic Rate) tax code in the calculator to see your combined take-home pay.

How do I calculate take-home pay from an hourly wage?

Multiply your hourly rate by hours per week, then by 52 weeks to get annual gross salary. Divide by 12 for monthly gross. Enter that figure into the [take-home pay calculator](/tools/finance/take-home-pay-uk) with your tax code and deductions. For example, £15 per hour for 37.5 hours per week is £29,250 gross per year, or £2,437.50 gross per month.

Does take-home pay change if I work in Scotland?

Yes. Scotland has different Income Tax rates and bands, though National Insurance rates are the same across the UK. Scottish taxpayers have a five-band system with a top rate of 48%, compared to England's three-band system with a top rate of 45%. If you are a Scottish taxpayer, your tax code starts with S. Use a Scotland-specific calculator for exact figures.

What is the Marriage Allowance?

The Marriage Allowance lets you transfer 10% of your personal allowance to your spouse or civil partner if they earn more than you. This saves up to £258 per year in tax for the higher earner. You can claim it if you earn less than the personal allowance and your partner earns between the personal allowance and the higher-rate threshold. Apply through HMRC, and your tax code will update to reflect the transferred allowance.

UK Take-Home Pay Calculator (2025/26)

See net salary after Income Tax, National Insurance, pension, and student loan, with a clear breakdown of where every pound goes.

How does the UK Take-Home Pay Calculator work step by step?

The [OnSumo UK Take-Home Pay Calculator](/tools/finance/take-home-pay-uk) calculates your net income after Income Tax, National Insurance contributions, and pension deductions. You enter your gross annual salary, tax code, pension contribution percentage, and any student loan plan, and the calculator shows your monthly and annual take-home pay. UK tax is deducted at source through PAYE (Pay As You Earn). The calculator applies the current tax bands, National Insurance rates, and student loan thresholds to show what actually lands in your bank account each month. The calculation accounts for your personal allowance (the amount you earn tax-free each year), applies progressive tax rates to income above that threshold, deducts Class 1 National Insurance contributions based on your earnings, and subtracts pension contributions and student loan repayments if applicable.

What does a typical UK Take-Home Pay Calculator result look like?

A UK employee earns £45,000 gross annual salary with a standard 1290L tax code, contributes 5% to a workplace pension, and has a Plan 2 student loan. Income Tax: £6,420 per year (20% on income above £12,900) National Insurance: £4,068 per year (12% on income between £12,570 and £50,270) Pension: £2,250 per year (5% of gross) Student Loan: £1,596 per year (9% of income above £27,295) Take-home pay: £30,666 per year (£2,556 per month) The employee keeps 68% of gross salary after all deductions. Without the student loan, take-home would be £32,262 per year. The calculator shows how each deduction affects the net amount.

Frequently asked questions

What is the UK personal allowance for 2026-27?
The personal allowance is £12,900 for the 2026-27 tax year. This is the amount you can earn tax-free each year. If you earn more than £12,900, you pay Income Tax on the excess. The personal allowance is reduced if you earn over £100,000 (you lose £1 of allowance for every £2 earned above £100,000). Use the [UK take-home pay calculator](/tools/finance/take-home-pay-uk) to see your exact tax liability.
How does National Insurance work in the UK?
National Insurance is a tax on earnings that funds state benefits and the NHS. For employees, you pay Class 1 contributions: 12% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. If you earn below £12,570, you pay no National Insurance. The calculator applies current NI rates to show your total annual and monthly contributions.
What is a tax code and how do I find mine?
Your tax code tells your employer how much tax to deduct from your pay. The most common code is 1290L, which gives the standard personal allowance of £12,900. You can find your tax code on your payslip, P60, or a notice from HMRC. If your code is different, it may account for benefits in kind, second jobs, or unpaid tax from previous years. Enter it exactly as shown in the calculator.
When do I start paying back my student loan?
You start repaying when your income exceeds the plan threshold for your loan type. Plan 1 starts at £22,015, Plan 2 at £27,295, Plan 4 at £27,660, and Postgraduate Loan at £21,000. If you earn below the threshold, you pay nothing. Repayments are 9% of income above the threshold for undergraduate loans, and 6% for Postgraduate Loans. The [take-home pay calculator](/tools/finance/take-home-pay-uk) shows your exact monthly repayment.
How much should I contribute to my workplace pension?
The legal minimum is 8% of qualifying earnings: your employer contributes at least 3%, and you contribute at least 5%. Many employers offer higher contributions if you match them. Pension contributions are deducted before tax, so a 5% contribution costs you less than 5% of your gross salary. The calculator shows how pension contributions affect your take-home pay.
Why is my take-home pay lower than I expected?
The main deductions are Income Tax (20% to 45% on income above your personal allowance) and National Insurance (12% on most earnings). Add pension contributions and student loan repayments, and you can lose 30% to 40% of your gross salary. The [UK take-home pay calculator](/tools/finance/take-home-pay-uk) breaks down each deduction so you see where the money goes.
What happens if I have two jobs?
Your personal allowance applies to only one job, usually your main job. Your second job is taxed at the basic rate (20%) from the first pound earned, with no personal allowance. You also pay National Insurance on the second job if it pays over £12,570. Enter your second job income using a BR (Basic Rate) tax code in the calculator to see your combined take-home pay.
How do I calculate take-home pay from an hourly wage?
Multiply your hourly rate by hours per week, then by 52 weeks to get annual gross salary. Divide by 12 for monthly gross. Enter that figure into the [take-home pay calculator](/tools/finance/take-home-pay-uk) with your tax code and deductions. For example, £15 per hour for 37.5 hours per week is £29,250 gross per year, or £2,437.50 gross per month.
Does take-home pay change if I work in Scotland?
Yes. Scotland has different Income Tax rates and bands, though National Insurance rates are the same across the UK. Scottish taxpayers have a five-band system with a top rate of 48%, compared to England's three-band system with a top rate of 45%. If you are a Scottish taxpayer, your tax code starts with S. Use a Scotland-specific calculator for exact figures.
What is the Marriage Allowance?
The Marriage Allowance lets you transfer 10% of your personal allowance to your spouse or civil partner if they earn more than you. This saves up to £258 per year in tax for the higher earner. You can claim it if you earn less than the personal allowance and your partner earns between the personal allowance and the higher-rate threshold. Apply through HMRC, and your tax code will update to reflect the transferred allowance.