UK Income Tax Calculator
Calculate your take-home pay for the 2026/27 tax year.
Estimated Monthly Take Home
Yearly Net
£32,319
Weekly Net
£621
Daily Net
£124
Tax Paid
£7,681
| Deduction | Yearly | Monthly |
|---|---|---|
| Gross Salary | £40,000 | £3,333 |
| Pension (Before Tax) | £2,000 | £167 |
| Income Tax | £5,486 | £457 |
| National Insurance | £2,195 | £183 |
| Student Loan | £0 | £0 |
| Take Home Pay | £32,319 | £2,693 |
How UK Income Tax is Calculated?
Your take-home pay is what's left after deductions. For most employees, this includes Income Tax and National Insurance. For the 2026/27 tax year, calculations use the latest confirmed thresholds.
Personal Allowance (£12,570)
The amount of income you can earn each year without paying any Income Tax. Frozen until 2028.
National Insurance (2026 Rates)
The main employee rate is 8% for earnings between £12,570 and £50,270, and 2% for anything above.
| Tax Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
How UK Income Tax Works
In the UK, most people have a Personal Allowance of £12,570, which is the amount of income you don't have to pay tax on. Anything above this is taxed at different rates depending on which 'tax band' your income falls into.
20% Basic Rate
On income between £12,571 and £50,270
40% Higher Rate
On income between £50,271 and £125,140
What is National Insurance?
National Insurance (NI) contributions qualify you for certain benefits and the State Pension. For the 2024/25 tax year, the main rate for employees is 8% on earnings between £12,570 and £50,270, and 2% on earnings above that.
Pro Tip: Reduce your Tax
Increasing your pension contributions via"Salary Sacrifice" reduces your taxable income, meaning you pay less Income Tax and National Insurance overall.