What this calculator does
This calculator estimates employee take-home pay after Income Tax, employee National Insurance and pension contributions. It is built for quick planning rather than payroll submission, so it keeps the assumptions visible beside the result.
Formula used
Taxable pay is gross annual pay minus pension contributions. Personal Allowance is then applied, including the taper above GBP 100,000. National Insurance is calculated separately using Class 1 employee thresholds. If salary sacrifice is selected, the pension contribution reduces pay for National Insurance too.
How to read the result
Use the result as a planning estimate for a standard employee salary. Actual payroll can differ because of tax code changes, benefits in kind, student loans, bonus timing, previous employment, Scottish residency rules, salary sacrifice setup and payroll rounding.
Assumptions
- Uses the 2026 to 2027 tax year.
- Includes England, Wales and Northern Ireland rates, plus Scottish earned income rates.
- Assumes a standard Personal Allowance unless tapered by income.
- Does not include student loans, childcare vouchers, company car tax, marriage allowance or bonus-specific payroll treatment.
Sources and checks
Source links are included so you can check important formulas, thresholds and assumptions.
- GOV.UK Income Tax rates and allowances
- GOV.UK National Insurance rates and allowances
- GOV.UK Scottish Income Tax rates
Frequently asked questions
Why is this only an estimate?
Payroll depends on details that are not always visible from salary alone, including tax code, student loan plan, taxable benefits, salary sacrifice arrangements and previous pay in the tax year.
Does pension reduce National Insurance?
Only if the pension is taken through salary sacrifice. Standard relief at source and net pay arrangements can affect Income Tax differently from National Insurance.