UK
UK take-home pay in 2026-27
6 min read · Last updated 1 November 2026 · Tax Globy editorial team
A UK salary is reduced by income tax and employee National Insurance, and the personal allowance shapes both. For 2026-27 the allowance remains frozen at GBP 12,570, and the bands are unchanged. This guide shows how the calculation works in England, Wales, Northern Ireland and Scotland.
What comes out of a salary
A UK salary is reduced by income tax, employee National Insurance and, if you pay into a workplace pension, your own pension contribution. Income tax and National Insurance are calculated separately and follow different rules.
This guide covers England, Wales, Northern Ireland and Scotland for 2026-27. It does not include student loan repayments, benefits, tax code adjustments or employer contributions, all of which sit outside the basic calculation.
- Income tax, calculated on taxable income after the personal allowance
- Employee National Insurance, calculated on gross earnings within the thresholds
- Your own pension contribution, if you pay into a workplace scheme
The personal allowance
The personal allowance is GBP 12,570 and has been frozen at that level since April 2022. Income up to the allowance is not taxed, so the first part of most salaries is outside the income tax calculation.
The allowance is reduced by GBP 1 for every GBP 2 of income above GBP 100,000, and it reaches zero at GBP 125,140. That taper is the reason the effective marginal rate rises so sharply for higher earners.
The taper is why the allowance is sometimes described as being worth less than it looks. A higher salary does not remove it in one step; the relief disappears gradually between the two thresholds.
Run your own numbers
The calculator applies the rates described in this guide and shows the band-by-band breakdown.
Open the United Kingdom calculatorIncome tax bands in England, Wales and Northern Ireland
The table shows the bands that apply in England, Wales and Northern Ireland. Only the income inside each band is taxed at that band rate.
For example, at GBP 60,000 the income above the allowance is 47,430. The first 37,700 of that is taxed at 20% (7,540) and the remaining 9,730 at 40% (3,892), for income tax of 11,432. The personal allowance is fully available at this level, because the taper starts at GBP 100,000.
| Income band (GBP) | Rate |
|---|---|
| 12,571 to 50,270 | 20% |
| 50,271 to 125,140 | 40% |
| Above 125,140 | 45% |
Employee National Insurance
Employee National Insurance for 2026-27 is 8% on earnings between GBP 12,570 and GBP 50,270, and 2% above that. It is not income tax, and it does not follow the same bands or the personal allowance taper.
National Insurance is calculated on gross earnings, so a pension contribution made through salary sacrifice reduces it, while a contribution made from net pay does not. The figures in this guide assume no pension contribution.
The 8% rate applies only to earnings inside the band, so someone earning just above the threshold pays a small amount of National Insurance, not 8% of the whole salary.
Worked example: GBP 50,000
On GBP 50,000, the allowance removes 12,570, leaving 37,430 taxed at 20%, which is 7,486 in income tax. National Insurance is 8% of the same 37,430, or 2,994.40.
Take-home pay is 39,519.60 a year before any pension contribution. That is the figure to compare with monthly outgoings after dividing by twelve, which gives about 3,293.30 a month.
Scottish bands
Scotland uses the same personal allowance but a different set of bands and rates. The table lists them for 2026-27.
The Scottish bands are narrower, so the higher rates start at lower incomes than in the rest of the UK. National Insurance is the same across the UK.
| Income band (GBP) | Rate |
|---|---|
| 12,571 to 16,537 | 19% |
| 16,538 to 29,526 | 20% |
| 29,527 to 43,662 | 21% |
| 43,663 to 75,000 | 42% |
| 75,001 to 125,140 | 45% |
| Above 125,140 | 48% |
The 60% zone between GBP 100,000 and GBP 125,140
Between GBP 100,000 and GBP 125,140, an extra GBP 1,000 of income is taxed at 40%, and it also removes GBP 500 of personal allowance. That allowance would otherwise have been taxed at 40%, so the lost relief costs another GBP 200.
The result is GBP 600 of tax on GBP 1,000 of extra income, a marginal rate of 60%. Employee National Insurance at 2% adds a little more. The zone ends at GBP 125,140, where the allowance is gone and the income tax marginal rate returns to 45%.
Figures are estimates before pension contributions and other payroll adjustments.
Common questions
Why is my take-home pay lower than the estimate?
The estimate covers income tax and employee National Insurance only. Pension contributions, student loan repayments and payroll benefits are not included.
Does the personal allowance apply in Scotland?
Yes. The allowance is the same across the UK; the bands and rates that apply above it differ.
What happens to the personal allowance above GBP 100,000?
It falls by GBP 1 for every GBP 2 of income above GBP 100,000 and reaches zero at GBP 125,140. That taper creates the 60% marginal zone.
Is National Insurance the same as income tax?
No. National Insurance is a separate contribution with its own thresholds and rates, and it is not affected by the personal allowance taper.
Written and maintained by the Tax Globy editorial team
Tax Globy is an independent calculator project. Every rate, threshold and deduction is checked against the published official source listed on the page, and each page shows when it was last reviewed.
Last reviewed 1 November 2026 · Estimates only, not tax advice.
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