How is take-home pay calculated in the UK?
Start with your gross salary. Take off any salary-sacrifice pension. Subtract the personal allowance (£12,570 on tax code 1257L) to get taxable income, then apply the income tax bands for your nation. Employee National Insurance is charged separately at 8% on pay between £12,570 and £50,270 and 2% above that. Student loan repayments and pension contributions come off last. What remains is your take-home pay.
What is the take-home pay on a £30,000 salary in 2026/27?
On £30,000 in England, Wales or Northern Ireland with tax code 1257L, no pension and no student loan, income tax is £3,486.00 and National Insurance is £1,394.40, leaving £25,119.60 a year or £2,093.30 a month. In Scotland the same salary leaves £25,154.53 because the starter rate is lower but the intermediate rate is higher. A 5% pension or a Plan 2 loan would reduce both figures.
What does tax code 1257L mean?
1257L is the standard code for 2026/27. The number times ten is your tax-free personal allowance, £12,570, and the letter L means you get the standard allowance with no adjustments. Scottish taxpayers see S1257L and Welsh taxpayers C1257L. Codes ending W1, M1 or X are emergency codes that tax each payday in isolation. A K code means untaxed income or benefits are larger than your allowance, so an amount is added to your taxable pay instead.
Why is my actual payslip different from the calculator?
Payroll works pay period by pay period, so a bonus, overtime or a mid-year start can move tax between months even though the yearly total matches. National Insurance uses monthly thresholds, which changes the annual figure by a few pence, and student loan deductions are rounded down to whole pounds each month. Benefits in kind, a non-standard tax code, an emergency code, or two jobs will also change the numbers. The tax code box here handles most of these cases.
Is take-home pay different in Scotland?
Yes. Scotland sets its own income tax bands and rates: six bands from 19% to 48% in 2026/27, against three bands from 20% to 45% elsewhere. Scottish taxpayers pay slightly less below about £30,000 and more above it. National Insurance, the personal allowance and student loan thresholds are the same across the UK, and Plan 4 loans apply to Scottish borrowers. Choose Scotland above, or enter a tax code starting with S, to switch the bands.
Does salary sacrifice increase take-home pay?
For the same pension contribution, yes. Salary sacrifice lowers your gross pay before both income tax and National Insurance are worked out, so you save the 8% or 2% NI that a normal contribution does not. On £50,000 with 5% going into a pension, salary sacrifice gives £37,719.60 a year against £37,519.60 for a net-pay scheme, a difference of £200.00. It can reduce entitlements based on gross pay, such as statutory maternity pay, so it is not always better.
Do I pay National Insurance after State Pension age?
No. Employees stop paying Class 1 National Insurance once they reach State Pension age, currently 66 and rising to 67 between 2026 and 2028 for people born on or after 6 April 1960. Your employer puts you on NI category C and still pays employer contributions. Income tax carries on as normal. Tick the State Pension age option under more options above and the calculator removes employee NI from your take-home pay.
What percentage of my salary do I take home?
It depends on where you sit in the bands. In 2026/27, with no pension or student loan, someone on £30,000 keeps about 84% of gross, someone on £60,000 keeps about 76%, and someone on £100,000 keeps about 69%. Between £100,000 and £125,140 the personal allowance is withdrawn, so each extra pound is taxed at an effective 60% plus NI. A 5% pension and a Plan 2 loan typically take a further 8 to 12 points off.