How UK take-home pay is calculated in 2026/27
Your take-home pay is the part of your salary that actually reaches your bank account after payroll deductions. For most employees, the biggest deductions are Income Tax and employee National Insurance, but pension contributions, student loans and your tax code can also change the final figure.
What is deducted from your salary?
Your gross salary is the amount you earn before deductions. Payroll then works out the deductions that apply to you and the amount left becomes your net or take-home pay. This calculator shows the annual, monthly and weekly result so you can compare the headline salary with the money you are likely to receive.
How does Income Tax affect take-home pay?
Income Tax is not normally charged at one rate across your whole salary. Your Personal Allowance can make part of your income tax-free, then taxable income is split across the tax bands that apply to you. Only the portion of income inside each band is taxed at that band's rate. Scotland uses different Income Tax bands, so choose the correct region before comparing results.
How does National Insurance affect your salary?
Employee National Insurance is another payroll deduction and is separate from Income Tax. The amount depends on your earnings and the thresholds and rates that apply. This is why two people with the same Income Tax bill can still see a different overall deduction rate if their circumstances are different.
Do pension contributions reduce take-home pay?
Usually, yes, but the exact effect depends on how your pension is arranged. Salary sacrifice can reduce the salary used for some tax and National Insurance calculations. A net pay arrangement takes pension contributions before Income Tax is calculated, while relief at source works differently. Use the pension options above to compare the methods rather than assuming the same contribution percentage will always produce the same payslip.
What about student loans and postgraduate loans?
Student loan repayments are payroll deductions based on the repayment plan and your earnings. The calculator supports Plan 1, Plan 2, Plan 4 and Plan 5, plus Postgraduate Loan repayments. Adding the correct plan matters when comparing jobs or deciding how much of a pay rise would actually reach your bank account.
Why can your actual payslip be different?
A calculator is best used as an estimate. Real PAYE payroll is calculated by pay period and can be affected by cumulative tax, emergency tax codes, bonuses, taxable benefits, multiple jobs, payroll rounding and employer-specific deductions. If your result looks very different from your payslip, check your tax code and the deductions shown by your employer first.
WorkSmartMoney provides estimates for general information. Actual payroll can differ because of tax-code operation, pay frequency, benefits, bonuses, payroll rounding and other deductions.