Take-Home Pay: How Salary After Tax & NI Works (2026/27)
Your gross salary is rarely what lands in your bank account. Here is exactly what comes off it in 2026/27 — income tax, National Insurance, pensions and student loans — with a clear salary-after-tax table.
Last updated 27 June 2026 · Written and reviewed by Mustafa Bilgic
Salary after tax estimate
Enter your gross salary to see income tax, National Insurance and what you actually take home in 2026/27.
Standard 1257L tax code, no pension or student loan. Check your own figures on GOV.UK.
What comes off your gross pay
Your gross salary is the headline figure in your contract. Your take-home pay (or net pay) is what actually reaches your bank account after deductions. For a typical employee paid through PAYE, four things can be taken off:
- Income tax — 20%, 40% or 45% on the slices of your salary above the £12,570 personal allowance.
- National Insurance — 8% on earnings between £12,570 and £50,270, then 2% above.
- Pension contributions — usually a percentage of your pay, often with tax relief.
- Student loan repayments — a percentage of income above your plan's threshold.
On a £35,000 salary in 2026/27 you take home about £28,720 a year — close to £2,393 a month — after £4,486 income tax and £1,794 National Insurance.
National Insurance in 2026/27
Employee (Class 1) National Insurance has a simple two-step structure for 2026/27. You pay nothing on the first £12,570, then 8% on everything between £12,570 and £50,270, and 2% on earnings above £50,270. Unlike income tax, NI is normally worked out on each pay period rather than your annual total, so an irregular month can change it.
Source: GOV.UK — National Insurance: how much you pay.
If you only want the NI figure on its own — useful when you are checking a payslip or comparing two job offers — the UK National Insurance calculator isolates that single deduction for any salary.
Salary after tax: a quick reference table
| Gross salary | Income tax | NI | Yearly take-home | Monthly |
|---|---|---|---|---|
| £25,000 | £2,486 | £994.40 | £21,519.60 | £1,793 |
| £35,000 | £4,486 | £1,794.40 | £28,719.60 | £2,393 |
| £45,000 | £6,486 | £2,594.40 | £35,919.60 | £2,993 |
| £55,000 | £9,432 | £3,110.60 | £42,457.40 | £3,538 |
| £75,000 | £17,432 | £3,510.60 | £54,057.40 | £4,505 |
2026/27 rates, standard tax code, no pension or student loan. Monthly figures rounded.
A worked example: £45,000 salary
Here is how a £45,000 salary becomes take-home pay:
- Personal allowance £12,570 — taxed at 0%
- Remaining £32,430 at 20% income tax = £6,486
- National Insurance: £32,430 at 8% = £2,594.40
- Take-home = £45,000 − £6,486 − £2,594.40 = £35,919.60 a year (about £2,993 a month)
Add a 5% workplace pension and the deductions change again, though pension money is yours — it is just moved into your retirement pot rather than taxed away. To model your own salary, including pension and student loan options, this free take-home pay calculator lets you toggle each deduction and see the monthly result.
Why your payslip might look different
If your take-home pay is lower than these tables suggest, the usual culprits are a workplace pension, a student loan repayment, a company benefit taxed through your code (like private medical insurance), or a non-standard tax code. After changing jobs you may also be taxed on a "month one" emergency basis until HMRC updates your record, which often corrects itself with a small refund later.
Frequently asked questions
How is take-home pay calculated in the UK?
Take-home pay is your gross salary minus income tax, National Insurance and any pension or student loan deductions. For most employees these are taken automatically through PAYE before the money reaches your bank account.
What National Insurance do employees pay in 2026/27?
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year, then 2% on anything above £50,270. There is no NI on the first £12,570.
Why is my take-home pay lower than I expected?
Beyond income tax and National Insurance, common reasons are a workplace pension contribution, a student loan repayment, a non-standard tax code, or being taxed on a month-one basis after changing jobs.
Does a pension contribution reduce my take-home pay?
Yes, but by less than the amount paid in, because pension contributions usually get tax relief. A £100 contribution might only reduce your take-home pay by £80 for a basic-rate taxpayer, with the rest effectively added by tax relief.
What is the difference between gross and net pay?
Gross pay is your salary before any deductions. Net pay, or take-home pay, is what actually lands in your account after income tax, National Insurance and any other deductions have been taken.