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Take-home pay calculator

Enter a salary and see what lands in your account after income tax, National Insurance, pension and student loan, using 2026/27 rates.

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Treated as a net pay arrangement: it reduces income tax but not National Insurance.

How this is calculated

Your pension contribution comes off first, which reduces the income your tax is worked out on but not the income National Insurance is worked out on.

Income tax is applied band by band. Only the slice of income falling inside each band is taxed at that band's rate, so crossing into the higher rate never taxes your whole salary at 40%.

National Insurance and student loan repayments are both calculated on your full gross salary, before any pension deduction.

Above £100,000 your personal allowance is reduced by £1 for every £2 of income, which produces an effective 60% marginal rate up to £125,140.

Rates used · 2026/27

Personal allowance£12,570
Basic rate 20%£12,571 to £50,270
Higher rate 40%£50,271 to £125,140
Additional rate 45%Above £125,140
Employee NI 8%£12,570 to £50,270
Employee NI 2%Above £50,270
Student loan Plan 1£26,900 at 9%
Student loan Plan 2£29,385 at 9%
Student loan Plan 4£33,795 at 9%
Student loan Plan 5£25,000 at 9%
Postgraduate loan£21,000 at 6%

Last checked July 2026. Source: HMRC and gov.uk.

Worked example

On £45,000 with a 5% pension and no student loan, £2,250 goes to the pension, leaving £42,750 of taxable income. After the £12,570 personal allowance, £30,180 is taxed at 20%. National Insurance is charged on the full £45,000, so 8% applies to the £32,430 above the primary threshold.

Common questions

Does this use Scottish tax rates?

Not yet. Scotland sets its own bands and rates, so a Scotland option needs its own confirmed rate set before it can be added.

Why is National Insurance not reduced by my pension?

Under a net pay arrangement only income tax relief applies. A salary sacrifice arrangement does reduce National Insurance, because your contractual salary itself is lower.

Is a bonus taxed at a higher rate?

No. A bonus is taxed as ordinary income. It can look worse on one payslip because PAYE spreads your allowances evenly across the year.

What is the 60% tax trap?

Between £100,000 and £125,140 you lose £1 of personal allowance for every £2 you earn, so each extra pound is effectively taxed at about 60% once the lost allowance is counted.

This is an estimate, not financial advice. The result is arithmetic based on the figures you entered and the published rates listed above. It does not account for your full circumstances and should not be the only basis for a decision. For advice specific to you, speak to a qualified adviser.