How your salary is taxed in 2026/27
Two deductions come out of almost every UK payslip: income tax and employee National Insurance. For the 2026/27 tax year (6 April 2026 to 5 April 2027) in England, Wales and Northern Ireland:
- £0 to £12,570: tax-free (the personal allowance)
- £12,571 to £50,270: 20% basic rate
- £50,271 to £125,140: 40% higher rate
- Above £125,140: 45% additional rate
National Insurance comes on top: 8% of earnings between £12,570 and £50,270, then 2% above that. Scotland shares the personal allowance and NI rates but sets its own income tax bands.
A worked example: £35,000
The £100,000 trap
Above £100,000 the personal allowance is withdrawn at £1 for every £2 earned, disappearing completely at £125,140. Losing tax-free allowance while paying 40% on the extra income produces an effective 60% marginal rate in that window. It is the main reason many people earning just over £100,000 make pension contributions: money paid into a pension reduces taxable income and can claw the allowance back.
What this calculator leaves out
Pension contributions, student loan repayments, salary sacrifice, benefits in kind, marriage allowance and non-standard tax codes all move the final number, in some cases substantially. Treat the results as a clear starting point rather than a payslip preview, and use HMRC's estimator or your payroll team for the exact figure. This is guidance, not tax advice.
Frequently asked questions
Why is my payslip different from this calculator?
This calculator shows income tax and employee National Insurance only, using the standard tax code (1257L). Payslips often also deduct pension contributions, student loan repayments, salary-sacrifice benefits or use a non-standard tax code, all of which change the final figure.
What is the personal allowance and how does it disappear?
The first £12,570 you earn is tax-free. Above £100,000 the allowance shrinks by £1 for every £2 of income, vanishing entirely at £125,140. That taper creates an effective 60% tax rate on income between £100,000 and £125,140.
Does this work for Scotland?
Not exactly. Scotland sets its own income tax bands (six of them in 2026/27), so Scottish taxpayers will see slightly different tax figures, especially on middle and higher incomes. National Insurance is the same UK-wide.
How is National Insurance worked out?
Employees pay 8% on earnings between £12,570 and £50,270 a year, and 2% on everything above that. NI is actually calculated on each payslip rather than annually, so people with very uneven pay can see small differences from the annual figure shown here.
Is overtime, bonus or pension included?
Enter your total expected gross pay including bonus and overtime for the year to see the tax on it. Pension contributions are not modelled: workplace pension contributions usually reduce your taxable pay, so with a pension your take-home will differ from the figure shown.