How the calculators work
Every rate, threshold and rule behind the calculators, with the GOV.UK page each figure came from and the simplifications we make.
- Tax year
- Verified
- Reviewed by Shreyas Banakar
Every calculator on UK Pay Calculators is a form over one shared tax engine. The engine reads its rates from a single data file for each tax year, and this page is generated from that same file. If a number here changes, the calculators change with it, and the date above moves. Nothing is typed twice.
The rule we hold ourselves to: if a figure cannot be traced to a GOV.UK or Scottish Government page, it does not ship. Each table below names its source, and the full list is at the end.
The calculation, step by step
- Salary sacrifice comes off gross first. The sacrificed amount is not pay, so it reduces income tax, National Insurance and student loan repayments alike.
- Net-pay pension contributions reduce taxable pay only. National Insurance and student loan deductions are worked out on pay before them.
- Relief-at-source contributions are paid from net pay at 80% of the gross contribution. The provider reclaims the other 20%. Any further relief due to a higher, intermediate, advanced or top-rate taxpayer is reported separately because HMRC pays it outside payroll.
- Adjusted net income is pay after all three pension routes (relief-at-source contributions grossed up). It decides the personal allowance taper: £1 of allowance is withdrawn for every £2 above £100,000, rounded down to whole pounds. Pension contributions are rounded to pence first, so the taper always matches the income figure shown.
- Income tax is charged on taxable income (pay less the allowance) using the band table for the nation chosen or implied by the tax code prefix.
- Employee National Insurance is charged on pay after salary sacrifice using the annual thresholds for the category letter. Nothing is due from State Pension age.
- Student loan and Postgraduate Loan repayments are a fixed percentage of the same pay National Insurance uses, above each plan's threshold. A postgraduate loan is collected alongside an undergraduate plan.
- Take-home pay is pay after salary sacrifice, less income tax, National Insurance, loan repayments and any pension paid from pay. Monthly is a twelfth, weekly a fifty-second, daily a two-hundred-and-sixtieth, and hourly is weekly divided by hours worked.
- Marginal rate is measured by re-running the whole calculation with £2 more gross (with the pension contribution held fixed) and comparing the deductions. It therefore includes tax, NI and loans, and shows the effective 60% (England) or 67.5% (Scotland) tax rate in the £100,000 to £125,140 zone.
Personal allowance and other allowances, 2026/27
| Item | Figure | Source |
|---|---|---|
| Standard personal allowance | £12,570 (tax code 1257L) | GOV.UK: income tax rates |
| Allowance taper | £1 lost per £2 of adjusted net income over £100,000; zero at £125,140 | GOV.UK: income over £100,000 |
| Blind Person's Allowance | £3,250, added to the personal allowance and not tapered | GOV.UK: Blind Person's Allowance |
| Marriage Allowance | £1,260 transferable (reference only; enter your M or N code to apply it) | GOV.UK: Marriage Allowance |
Income tax bands, 2026/27
HMRC publishes bands in taxable income (after the allowance). Many websites quote them as total income assuming the standard allowance; both columns are shown so you can match either. The engine applies the taxable-income column, which is what keeps it right for people with a reduced allowance.
England, Wales and Northern Ireland
| Band | Rate | Taxable income | Total income on 1257L |
|---|---|---|---|
| Basic rate | 20% | £1 to £37,700 | £12,571 to £50,270 |
| Higher rate | 40% | £37,701 to £125,140 | £50,271 to £125,140 |
| Additional rate | 45% | over £125,140 | over £125,140 |
Source: Rates and thresholds for employers 2026 to 2027. Wales sets its own rates but has matched England and Northern Ireland for 2026/27, per GOV.UK: Welsh income tax.
Scotland
| Band | Rate | Taxable income | Total income on S1257L |
|---|---|---|---|
| Starter rate | 19% | £1 to £3,967 | £12,571 to £16,537 |
| Scottish basic rate | 20% | £3,968 to £16,956 | £16,538 to £29,526 |
| Intermediate rate | 21% | £16,957 to £31,092 | £29,527 to £43,662 |
| Scottish higher rate | 42% | £31,093 to £62,430 | £43,663 to £75,000 |
| Advanced rate | 45% | £62,431 to £125,140 | £75,001 to £125,140 |
| Top rate | 48% | over £125,140 | over £125,140 |
Sources: Scottish Rate Resolution 2026-27 (taxable-income limits) and GOV.UK: income tax in Scotland (total-income table). The personal allowance and its taper are UK-wide and apply to Scottish taxpayers.
Flat-rate tax codes
BR, D0 and D1 charge one rate on all pay from that job with no allowance. In Scotland the codes are SBR, SD0, SD1, SD2 and SD3 and they map to the Scottish rates: SD0 is the 21% intermediate rate, not the 40% higher rate. A K code adds ten times its number to taxable pay, and the tax taken under it is capped at half of pay. NT charges no tax. 0T gives no allowance but uses the normal bands. Source: GOV.UK: what your tax code means.
National Insurance, 2026/27
| Threshold | Per year |
|---|---|
| Lower earnings limit | £6,708 |
| Primary threshold (employee NI starts) | £12,570 |
| Secondary threshold (employer NI starts) | £5,000 |
| Upper earnings limit | £50,270 |
| Upper secondary threshold (under 21s, apprentices under 25, veterans) | £50,270 |
| Category | Who | Employee, PT to UEL | Employee, above UEL | Employer |
|---|---|---|---|---|
| A | Most employees | 8% | 2% | 15% |
| B | Married women and widows with a valid certificate of election (reduced rate) | 1.85% | 2% | 15% |
| C | Employees over State Pension age | 0% | 0% | 15% |
| H | Apprentices under 25 | 8% | 2% | 0% to £50,270, then 15% |
| J | Employees deferring NI because they already pay it in another job | 2% | 2% | 15% |
| M | Employees under 21 | 8% | 2% | 0% to £50,270, then 15% |
| V | Veterans in their first civilian job | 8% | 2% | 0% to £50,270, then 15% |
| Z | Employees under 21 who are deferring NI | 2% | 2% | 0% to £50,270, then 15% |
| X | No National Insurance due (for example, under 16) | 0% | 0% | 0% |
Source: Rates and thresholds for employers 2026 to 2027, cross-checked against GOV.UK: NI rates and categories. Employees who have reached State Pension age pay no Class 1 NI (GOV.UK). State Pension age is 66, rising to 67 between 2026 and 2028 for people born on or after 6 April 1960. The calculators treat age 66 as State Pension age; anyone born on or after 6 April 1960 can use the explicit option instead (timetable).
Student loan repayments, 2026/27
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Source: HMRC: rates and thresholds for employers 2026 to 2027, matching GOV.UK: repaying your student loan. Which plan you are on is explained at GOV.UK: which repayment plan you are on.
Pension contributions
Under relief at source the provider claims 20% basic-rate relief for everyone, including Scottish starter-rate taxpayers. Higher-rate taxpayers can claim the difference between their marginal rate and 20% from HMRC; the calculators show that amount but do not add it to take-home pay. Under a net pay arrangement the contribution is taken before tax, so relief arrives automatically at your marginal rate. Under salary sacrifice your contractual pay is reduced and the employer pays the contribution, which is why NI falls as well. Sources: GOV.UK: tax relief on pensions and HMRC: adjusted net income.
Simplifications, stated plainly
- Annual basis. Tax and NI are calculated for the whole year and divided evenly. Payroll uses monthly or weekly thresholds and cumulative PAYE, so a payslip can differ by pence on NI and by more if pay is uneven across the year.
- Student loan rounding. Payroll rounds each period's deduction down to the whole pound; we do not, so real deductions can be up to £12 a year lower.
- Custom tax codes are taken at face value. If you enter a code other than 1257L, its allowance is used as HMRC issued it and the £100,000 taper is not applied again on top, since HMRC's code already reflects their view of your allowance.
- One job, one employer. Second jobs, pensions in payment and benefits in kind are only reflected if HMRC has put them into the tax code you enter.
- State Pension age is approximated as 66 when you give an age; use the explicit option if your own date has passed.
- Marginal rate uses a £2 step, so in the £2 either side of a band edge it shows a blend of the two rates.
How we test
The engine ships with an automated test suite of hand-worked cases for 2026/27: basic, higher and additional-rate earners in both nations, the £100,000 to £125,140 taper zone, each student loan plan alone and stacked with a Postgraduate Loan, the three pension methods at the same salary (asserting that salary sacrifice always leaves the most), an employee over State Pension age, every tax code form HMRC issues, and edge inputs from £0 to £10 million. The suite runs on every change before anything is published, and a rate cannot be changed without changing a test.
When the figures change
The UK tax year starts on 6 April. New rates are loaded as a new data file and every calculator, this page and the visible "rates last checked" date switch together. Mid-year changes announced at a Budget or Spring Statement are applied from the date they take effect. Spotted something wrong? Please tell us; corrections are published with a note.
All sources
- Income Tax rates and Personal Allowances — GOV.UK, accessed 10 September 2026
- Rates and allowances for Income Tax (current and past) — HMRC, accessed 10 September 2026
- Income over £100,000 — GOV.UK, accessed 10 September 2026
- Rates and thresholds for employers 2026 to 2027 — HMRC, accessed 10 September 2026
- Income Tax in Scotland — GOV.UK, accessed 10 September 2026
- Scottish Income Tax rates and bands 2026 to 2027 — Scottish Government, accessed 10 September 2026
- Scottish Rate Resolution 2026-27: explanatory note — Scottish Government, accessed 10 September 2026
- Welsh Income Tax — GOV.UK, accessed 10 September 2026
- National Insurance rates and categories — GOV.UK, accessed 10 September 2026
- National Insurance category letters — GOV.UK, accessed 10 September 2026
- Tax and National Insurance after State Pension age — GOV.UK, accessed 10 September 2026
- Repaying your student loan: what you pay — GOV.UK, accessed 10 September 2026
- Repaying your student loan: which repayment plan you are on — GOV.UK, accessed 10 September 2026
- Blind Person's Allowance: what you'll get — GOV.UK, accessed 10 September 2026
- Marriage Allowance — GOV.UK, accessed 10 September 2026
- State Pension age timetable — GOV.UK, accessed 10 September 2026
- Tax codes: what your tax code means — GOV.UK, accessed 10 September 2026
- Personal Allowances: adjusted net income — HMRC, accessed 10 September 2026
- Tax on your private pension contributions: tax relief — GOV.UK, accessed 10 September 2026