How Much Tax Will I Pay in the UK in 2026/27?
Current 2026/27 PAYE examples for common salaries, plus the tax code, pension method, Student Loan plan and payroll details that can change your result.
The amount deducted from your pay depends on more than your annual salary. Your tax code, pay frequency, pension method, Student Loan plan, Scottish taxpayer status, benefits and earlier pay in the tax year can all affect the result.
The examples below are PayeTax estimates for 6 April 2026 to 5 April 2027. They use England, Wales and Northern Ireland rates, tax code 1257L for England and Northern Ireland or C1257L for Wales, National Insurance category A, monthly payroll, no pension, no Student Loan and no other income or deductions.
2026/27 PAYE Examples
| Gross salary | Income Tax | Employee NI | Estimated annual take-home | Estimated monthly take-home |
|---|---|---|---|---|
| £20,000 | £1,483 | £594 | £17,923 | £1,494 |
| £30,000 | £3,485 | £1,394 | £25,121 | £2,093 |
| £40,000 | £5,484 | £2,194 | £32,322 | £2,694 |
| £50,000 | £7,483 | £2,994 | £39,523 | £3,294 |
| £60,000 | £11,429 | £3,210 | £45,361 | £3,780 |
These are estimates, not a promise of the amount on a payslip. The calculator applies HMRC's published monthly PAYE and National Insurance thresholds, so multiplying a rounded monthly result by 12 can differ slightly from a simplified annual calculation.
Estimate your own take-home pay.
The Rates Behind the Estimate
For England, Wales and Northern Ireland, the 2026/27 Income Tax rates include a standard Personal Allowance of £12,570, a 20% basic rate, a 40% higher rate and a 45% additional rate. The allowance starts to reduce when adjusted net income exceeds £100,000.
For most category A employees, employee National Insurance is 8% between the Primary Threshold and Upper Earnings Limit and 2% above the Upper Earnings Limit. Payroll applies period thresholds rather than treating National Insurance as an annual tax.
Scotland uses separate Scottish Income Tax rates for earnings and pensions.
What Can Change Your Result?
Your complete tax code
1257L is used for many people with one job or pension in England and Northern Ireland, while a Welsh code starts with C and a Scottish code starts with S. Benefits, untaxed income, underpayments and Marriage Allowance can also change the code.
The M and N letters do not mean 1257M and 1257N are standard Marriage Allowance codes. HMRC says M identifies a recipient and N a transferor; the number reflects that person's allowance and other adjustments.
Your pay pattern
PAYE is normally cumulative unless an emergency or non-cumulative basis applies. A bonus, irregular hours, a mid-year job change or earlier taxable pay can make one month's deduction different from annual salary divided by 12.
Pension method
Pension deductions require more than a percentage:
- With salary sacrifice, contractual cash pay is reduced and the employer contributes to the pension. Under 2026/27 rules this can reduce Income Tax and employee National Insurance.
- With net pay, the employee contribution is deducted before Income Tax, but National Insurance is based on gross earnings before that deduction.
- With relief at source, the contribution is taken after tax and National Insurance, then the provider adds basic-rate relief. Taxpayers above the basic rate may need to claim additional relief.
PayeTax's pension input currently models salary sacrifice. It should not be used as though it also models net pay or relief at source.
Student Loan plan
The annual Student Loan thresholds from April 2026 are:
| Plan | Annual threshold | Monthly threshold | Weekly threshold | Deduction rate above threshold |
|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 | £517.30 | 9% |
| Plan 2 | £29,385 | £2,448.75 | £565.09 | 9% |
| Plan 4 | £33,795 | £2,816.25 | £649.90 | 9% |
| Plan 5 | £25,000 | £2,083.33 | £480.76 | 9% |
| Postgraduate Loan | £21,000 | £1,750.00 | £403.84 | 6% |
Payroll uses pay-period thresholds and rounds each loan-type deduction down to the nearest whole pound. Payroll operates one undergraduate plan at a time, plus a Postgraduate Loan where applicable. If an employee cannot identify their plan, payroll uses Plan 5 until HMRC issues an SL1 notice; that default is available for Plan 1, 2 or 4 loans. If the employee has more than one undergraduate plan, payroll instead uses the plan with the lowest recovery threshold until the SL1 arrives.
Benefits and other deductions
Benefits in kind, payroll giving, court orders, union subscriptions, workplace benefits and deductions outside PAYE can change net pay. A calculator cannot infer them from salary alone.
Employment Expenses in 2026/27
For an employee using their own car or van for qualifying business travel, the approved mileage amount is 55p per mile for the first 10,000 business miles and 25p after that in 2026/27. If the employer pays less, tax relief may be available on the shortfall.
Employees cannot claim homeworking tax relief for 2026/27. Under separate employer homeworking-expense rules, employers can reimburse qualifying additional household costs, including up to £6 a week without evidence when the conditions are met.
Do not subtract an expense from a take-home estimate until you have checked that it qualifies and whether the employer has already reimbursed it.
How to Estimate Your Take-Home Pay
Step 1: Enter gross pay for the correct period
Use contractual gross pay before payroll deductions. Include a bonus if you want the estimate to reflect it.
Step 2: Copy the tax code from your payslip
Enter the complete code, including a C or S prefix or emergency basis where the calculator supports it.
Step 3: Add only supported deductions
Select the correct Student Loan plan. Use the pension input only if salary sacrifice describes your arrangement.
Step 4: Compare each line with your payslip
Check Income Tax, National Insurance, Student Loan and pension separately. A difference in one line usually points to the input or payroll rule that needs investigation.
Self Assessment Is a Separate Question
This calculator estimates employment deductions; it does not decide whether you need a tax return. PAYE employees may still need Self Assessment for some untaxed income, gains or other circumstances. A salary level alone is not a universal trigger.
HMRC's Self Assessment checker currently covers 2025/26. For 2026/27, use HMRC's current who must send a tax return guidance until the checker advances, and follow any notice to file issued by HMRC.
Official Sources
- Income Tax rates and Personal Allowances
- National Insurance contribution rates
- Student Loan repayment thresholds
- 2026/27 Student Loan deduction tables
- Workplace pension deduction methods
- Employee expense relief
- Tax-free employer homeworking reimbursements
Tools & Calculators
Frequently Asked Questions
Is a PAYE calculator result exactly what I will receive?
No. It is an estimate for the inputs and modelling assumptions. Payroll timing, cumulative pay, rounding, tax-code basis, benefits and unsupported deductions can produce a different payslip result.
Why does my payslip differ from an annual calculation?
PAYE and National Insurance use payroll-period rules and published period thresholds. Earlier pay in the tax year, irregular pay and rounding can also affect a particular period.
Do pension contributions always reduce Income Tax and National Insurance?
No. Salary sacrifice can reduce both under 2026/27 rules. Net pay normally reduces Income Tax but not National Insurance. Relief at source works through a provider top-up and may require a separate claim for additional relief.
Does PAYE mean I never need Self Assessment?
No. Many employees do not need a return, but the answer depends on all income, gains, reliefs and any notice from HMRC. The checker currently covers 2025/26; use HMRC's current filing guidance for 2026/27 until it advances.
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