PAYE Calculator
Calculate your UK take-home pay for the 2026/27 Tax Year. Estimate your Income Tax, National Insurance, student loan repayments, and net salary based on HMRC rates and thresholds. Updated for the latest tax year.
What Is PAYE?
PAYE (Pay As You Earn) is the UK system for collecting Income Tax and National Insurance from employees. Your employer deducts these amounts from your gross salary before you receive your pay, meaning you never have to calculate and pay your tax bill directly (unless you're self-employed or have other income).
The amount deducted is based on your tax code, which reflects your Personal Allowance — the amount of income you can earn before paying tax. The standard tax code for 2026/27 is 1257L, representing the £12,570 Personal Allowance.
2026/27 Tax Rates & Thresholds
For the 2026/27 tax year (6 April 2026 to 5 April 2027), the rates and thresholds are:
Personal Allowance: £12,570 (0% tax)
England, Wales & Northern Ireland:
Basic Rate: 20% on income from £12,571 to £50,270
Higher Rate: 40% on income from £50,271 to £125,140
Additional Rate: 45% on income over £125,140
Scotland:
Starter: 19% (£0-£3,967) • Basic: 20% (£3,968-£16,956)
Intermediate: 21% (£16,957-£31,092) • Higher: 42% (£31,093-£62,430)
Advanced: 45% (£62,431-£125,140) • Top: 48% (over £125,140)
National Insurance (Class 1): 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
Personal Allowance Taper: If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 over the threshold. It disappears entirely at £125,140, creating an effective 60% marginal rate.
How the PAYE Calculator Works
The calculator follows the HMRC percentage method for PAYE:
- Step 1: Apply your Personal Allowance based on your tax code.
- Step 2: Calculate Income Tax using the progressive tax bands for your region.
- Step 3: Calculate National Insurance using the Class 1 thresholds.
- Step 4: Apply any student loan repayment based on your plan.
- Step 5: Deduct pension contributions if entered.
- Step 6: Calculate your net take-home pay and effective tax rate.
The calculator supports custom tax codes and all major student loan repayment plans.
❓ PAYE Calculator FAQ
What is PAYE?
PAYE (Pay As You Earn) is the UK system where employers deduct Income Tax and National Insurance from employees' pay before it reaches their bank account. Most employees in the UK pay tax through PAYE.
What is my Personal Allowance for 2026/27?
The standard Personal Allowance for 2026/27 is £12,570. You can earn up to this amount without paying any Income Tax. Your tax code (e.g., 1257L) reflects this allowance.
What are the Income Tax rates for 2026/27?
In England, Wales and Northern Ireland: 20% (basic rate) on income from £12,571 to £50,270, 40% (higher rate) from £50,271 to £125,140, and 45% (additional rate) above £125,140. Scotland has its own six-band system.
What is the standard tax code for 2026/27?
The standard tax code for 2026/27 is 1257L, reflecting the £12,570 Personal Allowance. The 'L' means you're entitled to the standard Personal Allowance.
What happens if I earn more than £100,000?
Your Personal Allowance is reduced by £1 for every £2 of income above £100,000. It is fully withdrawn once your income reaches £125,140, creating an effective 60% marginal rate in that range.
How is National Insurance calculated?
For 2026/27, Class 1 National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
What are the student loan repayment plans?
The calculator supports Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate Loans. Each has different thresholds and repayment rates. Select your plan in the advanced options for an accurate deduction.
What is the difference between the tax codes 1257L, BR, and D0?
1257L is the standard code with the full Personal Allowance. BR (Basic Rate) means all income is taxed at 20% with no Personal Allowance. D0 means all income is taxed at 40% (higher rate) with no Personal Allowance.
How does the calculator handle pension contributions?
In the advanced options, you can enter a pension contribution percentage. This reduces your taxable income, which lowers your Income Tax and National Insurance. The default auto-enrolment minimum employee contribution is 5%.
How accurate is this PAYE calculator?
This calculator provides accurate estimates based on HMRC rates and thresholds for the 2026/27 tax year. However, individual circumstances (such as marriage allowance, gift aid, or other reliefs) may affect your actual tax liability. Use this as a planning tool, not a guarantee.
What is the difference between Income Tax and National Insurance?
Income Tax is a tax on your income that goes to the government to fund public services. National Insurance is a separate contribution that goes toward the NHS, state pension, and other benefits. Both are deducted from your pay.
How do I find my correct tax code?
Your tax code is shown on your payslip or on your HMRC Personal Tax Account. The standard code for most people with one job is 1257L for 2026/27. If your code is different, enter it as a custom tax code in the calculator.
What is the marginal tax rate?
The marginal tax rate is the rate of tax you pay on your next pound of income. For example, if you're a basic rate taxpayer in England, your marginal rate is 20% (plus 8% National Insurance, making 28% total). The calculator shows both your effective and marginal rates.
Does this calculator include Scotland's income tax rates?
Yes. You can select "Scotland" as your region, and the calculator will apply Scotland's six-band system with rates from 19% to 48%.