How to use it
- Choose where you live. Scotland has its own Income Tax rates; England, Wales and Northern Ireland share the same ones.
- Enter your yearly salary before any deductions. If you have salary sacrifice, enter the salary after the sacrifice.
- If you pay into a workplace pension, choose how it is taken and enter your contribution as a percentage of salary. Your payslip or pension provider can tell you which type you have.
- Choose your student loan plan, and tick the postgraduate loan if you have one.
- Read the monthly and yearly take-home pay, the breakdown of each deduction, the tax bands your income falls into and how much of your next £100 would be deducted.
How the deductions are worked out
Income Tax
Most people have a Personal Allowance of £12,570 a year that is not taxed. In England, Wales and Northern Ireland the next £37,700 is taxed at 20%, income up to £125,140 at 40% and anything above that at 45%. Scotland has six rates: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top, with the higher rate starting at £43,663. The allowance goes down by £1 for every £2 of adjusted net income above £100,000, so it is zero from £125,140.
National Insurance
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% above that, according to HMRC's rates for employers. The thresholds are the same in every part of the UK.
Student loans
Repayments are 9% of earnings above the threshold for your plan: £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5. A postgraduate loan adds 6% of earnings above £21,000.
Pensions
There are two ways a workplace pension can give you tax relief automatically. Under a net pay arrangement the employer takes the contribution before Income Tax, so you get relief at your top rate straight away. Under relief at source you pay from taxed pay and the provider adds 20%: you pay £80 for every £100 that goes in. A higher or additional rate taxpayer can then claim the extra relief themselves. The calculator takes pension contributions into account when working out adjusted net income for the £100,000 taper.
Examples
| Salary | Income Tax | National Insurance | Take-home per year | Per month |
|---|---|---|---|---|
| £30,000 | £3,486.00 | £1,394.40 | £25,119.60 | £2,093.30 |
| £60,000 | £11,432.00 | £3,210.60 | £45,357.40 | £3,779.78 |
| £125,140 | £42,516.00 | £4,513.40 | £78,110.60 | £6,509.22 |
In Scotland, a £30,000 salary pays £3,451.07 of Income Tax, slightly less than elsewhere in the UK. The two are equal at £33,493, and above that Scotland costs more: at £60,000 it is £13,182.05 because of the 21% and 42% rates.
Between £100,000 and £125,140 the tapering allowance creates a 60% Income Tax rate. A rise from £100,000 to £110,000 adds £6,000 of tax and £200 of National Insurance, leaving £3,800 of the extra £10,000. Paying more into a pension through a net pay arrangement reduces adjusted net income and can restore the allowance.
On £60,000 with a 5% pension, net pay costs you £3,000 and reduces tax by £600. Relief at source costs £2,400 from your pay, and you can claim the other £600 back yourself. For a basic-rate taxpayer both routes give the same take-home pay.
Limits
- The calculation is for the whole year. Payroll works pay period by pay period and rounds some amounts, so a payslip can differ by a few pence, and pay that varies from month to month is taxed differently in individual months.
- It assumes the standard tax code 1257L. If your tax code is different, for example because of benefits in kind or tax owed from an earlier year, your tax will be different.
- Only employment income is included. Savings, dividends, rental income, self-employment and benefits are not.
- Salary sacrifice, Marriage Allowance, Blind Person's Allowance, the High Income Child Benefit Charge and pension annual allowance limits are not modelled.
- It uses category A National Insurance on the full salary. Other categories, such as C, have different rates.
Frequently asked questions
What is the tax-free Personal Allowance for 2026/27?
£12,570, reduced by £1 for every £2 of adjusted net income above £100,000.
What is the National Insurance rate?
For employees, 8% on earnings between £12,570 and £50,270 a year and 2% above that.
Do Scottish taxpayers pay more?
Up to a salary of £33,493 they pay slightly less Income Tax than the rest of the UK, because of the 19% starter rate. Above that they pay more.
Why is there a 60% tax rate?
Between £100,000 and £125,140 each extra £2 removes £1 of Personal Allowance, so £1 of extra income costs 40p plus 20p of tax on the lost allowance.
Is my salary stored?
No. The calculation runs in your browser and nothing is sent or saved.