How take-home pay is worked out
Your workplace pension contribution comes off your salary first. Income tax is then charged on the rest above your Personal Allowance, which is £12,570 in both 2025 to 2026 and 2026 to 2027. The allowance falls by £1 for every £2 of income over £100,000, so it's gone completely at £125,140.
In England, Wales and Northern Ireland, the next £37,700 of taxable income is taxed at 20%, income up to £125,140 at 40%, and anything above that at 45%. Scotland has six bands, from a 19% starter rate up to a 48% top rate, so the same salary can give a slightly different result there.
Employee National Insurance is 8% of your earnings between £12,570 and £50,270 a year, and 2% above that. Student loan repayments are 9% of your income above your plan's threshold, and 6% above £21,000 for a Postgraduate Loan.
Worked example
On a £35,000 salary in England in 2026 to 2027, paying 5% into a workplace pension and with no student loan, your pension contribution is £1,750. Income tax is 20% of £33,250 minus the £12,570 Personal Allowance, which is £4,136. National Insurance is 8% of £35,000 minus £12,570, which is £1,794.40.
That leaves take-home pay of £27,319.60 a year, £2,276.63 a month or £525.38 a week. The same salary in Scotland gives £4,133.57 in income tax and £27,322.03 take-home.
With a Plan 2 student loan, you'd also repay 9% of the £5,615 above the £29,385 threshold, which is £505.35 a year.
Why your payslip may differ
The calculator works on a whole tax year at a steady salary. Your employer runs PAYE each pay period, so if your pay changes during the year, or you get a bonus in one month, your payslips can differ by a few pounds from these annual figures.
It also assumes the standard tax code. Benefits in kind, other income, tax owed from earlier years or a different tax code will change what you take home.
Inputs for the salary calculator
Tax year
The tax year runs from 6 April to 5 April. Choose 2025 to 2026 or 2026 to 2027 to use that year's rates and thresholds.
Gross salary (per year)
Your annual pay before any deductions, including any regular bonus or overtime you expect.
Where you pay income tax
Scottish income tax rates apply if you live in Scotland, wherever you work. National Insurance and student loan repayments are the same across the UK.
Workplace pension contribution
The percentage of your salary you pay into a workplace pension. It's treated as a net pay arrangement, taken before income tax, so it reduces your income tax but not your National Insurance or student loan repayments. Enter 0 if you don't pay into a pension.
Student loan
Your undergraduate repayment plan, if you have one. Plans 1, 2, 4 and 5 are repaid at 9% of income above the plan's threshold. Plan 5 repayments start in the 2026 to 2027 tax year, so it can't be used with 2025 to 2026.
Postgraduate Loan
Choose Yes if you have a Postgraduate Loan. It's repaid at 6% of income above £21,000, on top of any undergraduate plan.
CALCULATOR QUESTIONS
Salary calculator questions
How much is £35,000 a year after tax?
In England, Wales or Northern Ireland in 2026 to 2027, with a 5% workplace pension and no student loan, you'd take home £27,319.60 a year, or £2,276.63 a month.
What is the Personal Allowance?
It's the income you can earn before paying income tax: £12,570 in 2025 to 2026 and 2026 to 2027. It falls by £1 for every £2 you earn over £100,000.
Why does my pension reduce income tax but not National Insurance?
When your employer takes pension contributions from your pay before tax (a net pay arrangement), you get tax relief straight away, but National Insurance is still charged on your full salary. Salary sacrifice works differently, saving both; try the salary sacrifice calculator to compare.
Does the calculator include Scottish tax rates?
Yes. Choose Scotland under where you pay income tax to use the Scottish bands, which run from a 19% starter rate to a 48% top rate.
Why is my payslip slightly different?
Payroll works out tax and National Insurance each pay period rather than over the whole year, so uneven pay, bonuses or a non-standard tax code can make your payslip differ from these annual figures.