Know exactly what reaches your bank account

Understanding your UK take-home pay

Your gross salary is the headline figure in your contract. Your take-home — what actually lands in your bank — is what is left after several deductions, and the gap is bigger than most people expect.

Income Tax comes first. Everyone gets a £12,570 tax-free Personal Allowance; income above it is taxed at 20%, then 40% over £50,270, then 45% over £125,140. There is a sting between £100,000 and £125,140 — the allowance is withdrawn by £1 for every £2 you earn, an effective 60% rate on that slice. Scotland sets its own bands, from a 19% starter rate up to a 48% top rate. National Insurance is charged UK-wide at 8% between £12,570 and £50,270, then 2% above.

A workplace pension changes the sum, and how depends on the type: salary sacrifice also saves National Insurance, while net-pay and relief-at-source schemes save Income Tax only. If you are still repaying a student loan, that comes off too — 9% of income above your plan's threshold (6% for a postgraduate loan). These thresholds are frozen until April 2031, so fiscal drag quietly raises real tax bills each year.

Every threshold and rate here is traced to an official source and checked for 2026/27 — gov.uk for Income Tax, Scottish rates and National Insurance. In the public sector? Try the NHS or teacher calculators, which add the right pension automatically.

Take-home pay questions

How is take-home pay calculated?

We start with your gross salary, take off any pension contribution, then apply your Personal Allowance and the Income Tax bands, your National Insurance, and any student loan. What is left is your take-home — the money that reaches your account.

What are the 2026/27 tax rates?

In England, Wales and Northern Ireland: a £12,570 tax-free Personal Allowance, then 20% to £50,270, 40% to £125,140 and 45% above. Over £100,000 the allowance tapers away, creating an effective 60% rate. These thresholds are frozen to April 2031.

Does this work for Scotland?

Yes — switch the region to Scotland and we apply the Scottish bands (19% to 48% across six bands). National Insurance is the same UK-wide.

Salary sacrifice, net pay or relief at source — what is the difference?

Salary sacrifice lowers your gross, so it cuts Income Tax and National Insurance. Net pay (most workplace schemes) lowers your taxable pay but not your NI. Relief at source (personal pensions) is paid from your net pay, with basic-rate relief added and higher-rate relief via the tax bands.

Is my salary private?

Completely. Every calculation runs in your browser — your salary is never sent anywhere.