Does this cover Scotland?

Yes — toggle the Scotland switch to apply 2026/27 Scottish Income Tax bands: Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%. NI is the same across the UK.

What does salary sacrifice do?

Salary sacrifice reduces gross salary before tax and NI are calculated, saving both Income Tax and National Insurance on the sacrificed amount.

Why does tax spike above £100,000?

The Personal Allowance tapers by £1 for every £2 above £100,000, creating an effective ~60% marginal rate until the allowance is zero at £125,140.

Does this include student loans?

Yes — Plans 1, 2, 4 and Postgraduate are all supported with the correct thresholds and rates.

2026/27 tax year

UK PAYE Take-Home Pay Calculator

England, Wales, NI and Scotland. Salary sacrifice, pension, student loan. Band-by-band working.

Annual gross salary (£)

Salary sacrifice (£/year)

Personal pension contributions (£/year)

Other taxable income (£)

Student loan plan

Scottish taxpayer 6 bands

Annual take-home

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Income Tax

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Employee NI

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Gross salary—

Adjusted Net Income—

Personal Allowance—

Taxable income—

Total deductions—

Effective rate—

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How this calculator works

Salary sacrifice is deducted from gross pay first — reducing both Income Tax and National Insurance. Personal pension contributions (relief at source) reduce adjusted net income, which affects the Personal Allowance calculation and income tax, but not NI. Income Tax is then applied band-by-band to the remaining taxable income.

Scotland income tax 2026/27

Scottish taxpayers pay income tax under six bands set by the Scottish Parliament. Toggle the Scotland switch to apply: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%). National Insurance is not devolved — the same rates apply across the whole UK.

The £100,000 Personal Allowance taper

Between £100,000 and £125,140 adjusted net income, the Personal Allowance reduces by £1 for every £2 earned. This creates an effective marginal rate of approximately 60%. Pension contributions reduce adjusted net income directly and can restore some or all of the allowance.

Salary sacrifice vs personal pension

Salary sacrifice saves both Income Tax and NI on the sacrificed amount (employer and employee). Personal pension contributions (relief at source) save Income Tax only — NI is calculated on the pre-sacrifice gross. If your employer supports salary sacrifice, it is usually more efficient.

Why is my payslip different from this estimate?

This uses a standard 1257L tax code and annualised thresholds. Your payslip may differ due to a non-standard code, benefits in kind, multiple employments, or different pay-period calculations by your payroll software.

Does this include employer NI?

No — employer NI is a cost to your employer, not deducted from your pay. The salary vs dividend calculator includes it in the company cost model.

Is this calculator suitable for Scottish taxpayers?

Yes — toggle the Scotland switch to switch to Scottish Income Tax bands. The NI calculation is identical to rUK as NI is not devolved.

What counts as salary sacrifice?

Common salary sacrifice arrangements include workplace pension, cycle to work, electric vehicle schemes, and childcare vouchers. The key feature is that your contractual salary is formally reduced — saving both Income Tax and NI on the sacrificed amount.