2026/27 rates used
| Band | Income | Tax | Employee NI |
|---|---|---|---|
| Personal allowance | £0 – £12,570 | 0% | 0% |
| Basic rate | £12,571 – £50,270 | 20% | 8% |
| Higher rate | £50,271 – £125,140 | 40% | 2% |
| Additional rate | over £125,140 | 45% | 2% |
Personal allowance taper: −£1 per £2 of adjusted net income over £100,000. Student loans: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 at 9%; Postgraduate £21,000 at 6%.
Worked example
£55,000 with 5% salary sacrifice: pensionable salary £52,250. Tax: (50,270 − 12,570) × 20% = 7,540 + (52,250 − 50,270) × 40% = 792 → £8,332. NI: 37,700 × 8% = 3,016 + 1,980 × 2% = 39.60 → £3,055.60. Take-home £40,862 a year, £3,405 a month.
England, Wales and Northern Ireland only. Scottish taxpayers have six bands with different rates. Figures exclude benefits in kind, bonuses taxed at marginal rate, and tax code adjustments.
Frequently asked questions
What are the UK income tax rates for 2026/27?
Personal allowance £12,570 (0%), basic rate 20% on £12,571–£50,270, higher rate 40% on £50,271–£125,140, additional rate 45% above £125,140. The personal allowance is withdrawn by £1 for every £2 of income over £100,000, reaching zero at £125,140. Scotland has different income tax bands (not covered here).
How much National Insurance do employees pay in 2026/27?
Class 1 employee NI is 8% on earnings between £12,570 and £50,270 a year and 2% above £50,270. Nothing is due below £12,570. Employers pay 15% above £5,000 (not deducted from you).
What is the 60% tax trap?
Between £100,000 and £125,140 you lose £1 of personal allowance for every £2 earned, so each extra £100 is taxed £40 directly plus £20 on the lost allowance — an effective 60% rate (62% with NI). Pension contributions via salary sacrifice are the usual way to avoid it.
How are pension contributions treated?
Salary-sacrifice and net-pay contributions reduce your taxable and NI-able salary (sacrifice) or taxable salary (net pay). This calculator treats the percentage you enter as salary sacrifice, which is the most tax-efficient and most common arrangement for auto-enrolment schemes. Minimum auto-enrolment is 5% employee (on qualifying earnings £6,240–£50,270) with 3% from the employer.
What are the student loan thresholds for 2026/27?
Plan 1: £26,900; Plan 2: £29,385; Plan 4 (Scotland): £33,795; Plan 5: £25,000 — all at 9% of income above the threshold. Postgraduate loan: £21,000 at 6%. Repayments are calculated on gross pay before pension (for salary sacrifice, after).
Do UK expats in the Gulf pay UK tax on their salary?
Not if you are non-UK resident for the whole tax year under the Statutory Residence Test. UK rental income, UK pensions and some UK-source income remain taxable. Use the residence day counter to check your status.
Why is my first payslip different from this calculation?
PAYE is cumulative, so starting mid-year, an emergency tax code, benefits in kind (company car, medical) or a tax code adjustment for underpaid tax all change the monthly figure even though the annual total is the same.