How to Calculate Your UK Take-Home Pay

Step-by-step guide to calculating your UK take-home pay after income tax, National Insurance, and pension deductions for 2026/27.

1. Start with gross salary: Your annual salary before any deductions.
2. Subtract the Personal Allowance (£12,570): This portion is tax-free.
3. Apply income tax bands: 20% basic rate (up to £50,270), 40% higher rate (up to £125,140), 45% additional rate above that.
4. Calculate National Insurance: 8% on earnings between £12,570 and £50,270; 2% above £50,270.
5. Deduct pension contributions (if applicable) — these reduce your taxable income.
6. Deduct student loan repayments (if applicable).