UK Salary Calculator 2026 — Gross to Net
Calculate your UK take-home pay after income tax and National Insurance. Supports PAYE employee and self-employed sole trader modes.
Frequently Asked Questions
How is income tax calculated in the UK?
The UK uses progressive income tax bands for England, Wales, and Northern Ireland (Scotland has different rates). In 2026/27: the Personal Allowance is £12 570 (tax-free), the basic rate is 20% on income from £12 571 to £50 270, the higher rate is 40% from £50 271 to £125 140, and the additional rate is 45% above £125 140. The Personal Allowance tapers by £1 for every £2 earned above £100 000, reaching £0 at £125 140.
What is National Insurance for employees (Class 1)?
Employees pay Class 1 National Insurance contributions: 8% on earnings between £12 570 and £50 270 (the Primary Threshold to Upper Earnings Limit), and 2% on earnings above £50 270. The 8% rate was reduced from 12% in April 2024 and remains unchanged for 2026/27.
How is self-employed (sole trader) tax calculated in the UK?
Self-employed individuals pay the same income tax bands as employees. For National Insurance, they pay Class 4 NICs instead of Class 1: 6% on profits between £12 570 and £50 270, and 2% above £50 270. Class 2 NICs were abolished from April 2024. The self-employed NIC rates are lower than employee rates.
What is the Personal Allowance taper?
For income above £100 000, the £12 570 Personal Allowance is reduced by £1 for every £2 of income over £100 000. This creates an effective 60% marginal tax rate between £100 000 and £125 140 (40% income tax + 20% from lost allowance). Above £125 140 the allowance is £0 and the marginal rate drops back to 40% until the additional rate threshold.
What is the effective tax rate for a £50 000 salary in the UK?
For an employee earning £50 000/year, the combined effective rate (income tax + NI) is approximately 24–26%. Income tax is about £7 486 and Class 1 NI is about £3 016, leaving a net of approximately £39 498. The exact amount may vary with student loan repayments and pension contributions.
Does this calculator support Scotland?
No. This calculator uses England, Wales, and Northern Ireland income tax bands only. Scotland has its own tax bands (starter, basic, intermediate, higher, advanced, and top rates) set by the Scottish Parliament. National Insurance rates are the same across the UK.
Is the UK calculator accurate for 2026/27?
This calculator uses the 2026/27 tax year rates: £12 570 Personal Allowance with taper, the three income tax bands (20%/40%/45%), 8%/2% Class 1 NI for employees, and 6%/2% Class 4 NI for self-employed. It does not include student loan repayments, pension contributions, Scottish tax bands, or marriage allowance transfer.