Enter your salary to see your take-home pay for the 2026/27 tax year after Income Tax, National Insurance, student loan repayments and pension contributions. On a £40,000 salary in England with a 5% workplace pension (net pay), you take home about £2,559.97 a month.
Take-Home Pay Calculator 2026/27
Income Tax, National Insurance, student loan and pension · Updated 12 October 2026
- Take-home pay per year
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- Per week
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- Income Tax (year)
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- National Insurance (year)
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- Student loan (year)
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- Pension from your pay (year)
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- Personal Allowance
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| Year | Month | Week |
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Assumes tax code 1257L and annual thresholds; payroll uses weekly or monthly thresholds, so individual payslips can differ by a few pounds.
Income Tax rates for 2026/27
| Band (England, Wales, NI) | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Personal Allowance falls by £1 for every £2 of adjusted net income over £100,000, so it is zero from £125,140. Scotland sets its own bands for earned income:
| Scottish band | Income | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
National Insurance and student loans
- Employee Class 1 National Insurance is 8% on earnings between £12,570 and £50,270 a year (£242 to £967 a week) and 2% above that.
- Student loan repayments are 9% of earnings above your plan threshold: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000. Postgraduate Loans are 6% above £21,000.
How your pension type changes take-home pay
- Net pay arrangement: contributions come out before Income Tax, so you get full tax relief straight away, but you still pay National Insurance on them.
- Relief at source: contributions come out of taxed pay and your provider adds 20% basic-rate relief, so £80 from your pay becomes £100 in your pension. Higher-rate taxpayers claim the extra relief through Self Assessment.
- Salary sacrifice: you give up part of your salary, so you save both Income Tax and National Insurance, and student loan repayments are worked out on the lower salary.
Worked example: £40,000 in England
| Per year | Per month | |
|---|---|---|
| Gross pay | £40,000.00 | £3,333.33 |
| Pension (5%, net pay) | £2,000.00 | £166.67 |
| Income Tax | £5,086.00 | £423.83 |
| National Insurance | £2,194.40 | £182.87 |
| Take-home pay | £30,719.60 | £2,559.97 |
Taxable income is £40,000 − £2,000 − £12,570 = £25,430, taxed at 20%. National Insurance is 8% of (£40,000 − £12,570). With a Plan 2 loan you would also repay 9% of £10,615, which is £955.35 a year.
FAQs
Why is my payslip slightly different?
Payroll uses weekly or monthly thresholds and your actual tax code. Benefits in kind, a different tax code or bonuses also change the figures.
Do I pay student loan on my pension contributions?
Repayments are based on earnings subject to National Insurance. Net pay and relief at source contributions do not reduce them; salary sacrifice does.
Related calculators
- Savings Interest Tax CalculatorTax on interest after your Personal Savings Allowance
- Mortgage CalculatorMonthly repayments on a UK mortgage
Sources
- GOV.UK: Income Tax rates and Personal Allowances
- Scottish Government: Scottish Income Tax 2026 to 2027
- GOV.UK: Rates and allowances, National Insurance contributions · 2026 to 2027
- Cintra: Student loan repayment thresholds for 2026/27 · 7 April 2026
Figures current as of 12 October 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.