United Kingdom Salary Calculator 2026
Gross-to-net salary calculator for the UK. For employees and self-employed.
Sourced from official government publications
Tax rules last verified
Built by SalaryCalc team
How salary tax works in United Kingdom in 2026
This calculator models 5 tax regimes for United Kingdom — 2 for employed staff and 3 for freelancers and company owners. All amounts are calculated in GBP and can be displayed in another currency at current exchange rates. Each regime below lists the rates, thresholds and contributions the calculator applies; select one above to see it worked through on your own figure.
Employment income
PAYE England/Wales/NI
Employees resident outside Scotland
Standard UK-wide PAYE for employees outside Scotland. Personal Allowance £12 570 (tapers above £100 000), basic 20% / higher 40% / additional 45% income tax, plus Class 1 employee NIC (8% / 2%). Employer NIC (15%) is an employer cost — not deducted from gross.
- PA: £12 570 (taper £100 000–£125 140)
- Basic 20% / Higher 40% / Additional 45%
- Class 1 NIC: 8% / 2%
- Marginal 62% in £100 000–£125 140 zone
PAYE Scotland
Scottish-resident employees (main residence in Scotland)
Employees resident in Scotland use Scottish income-tax bands (Starter 19% / Basic 20% / Intermediate 21% / Higher 42% / Advanced 45% / Top 48%). NIC is UK-wide (Class 1, identical to rUK). Personal Allowance and £100 000 taper are unchanged from rUK.
- Starter 19% / Basic 20% / Intermediate 21%
- Higher 42% / Advanced 45% / Top 48%
- Class 1 NIC: 8% / 2% (UK-wide)
- PA taper: £100 000–£125 140
Scottish bands produce LOWER take-home than rUK across the IT salary range — the Intermediate band kicks in at £29 527 (21% vs rUK 20%), Higher at £43 663 (42% vs rUK 40%). Scotland-resident determined by main residence, not employer location.
Freelance, self-employed and company regimes
Limited Company outside IR35
IT contractors above ~£40 000 revenue, passing IR35 tests
Optimal structure for most UK IT freelancers earning above ~£40 000/yr. Contractor invoices through a personal-services company; profit pays Corporation Tax then is distributed as salary + dividends. Default split: £12 570 salary (zero PAYE + zero NIC) + 100% dividend payout of post-CT profit.
- CT: 19% to £50 000 / 25% above £250 000
- Marginal CT: 26.5% in £50 000–£250 000 band
- Dividend tax: 10.75% / 35.75% / 39.35% (April 2026)
- Dividend allowance: £500
- Employer NIC: 15% above £5 000 secondary threshold
Outside IR35 = engagement passes the IR35 status tests (genuine B2B, contractor sets working pattern, supplies own equipment, can substitute). Failing IR35 forces the Inside IR35 / Umbrella regime — switch in the dropdown to compare.
Sole Trader (self-employed)
Self-employed, no Limited Company, optional VAT registration
Trades in the contractor’s own name; no separate legal entity. Simpler administration than a Limited Company, no Corporation Tax, but no dividend optimisation and full personal exposure to liabilities. Income tax bands identical to PAYE rUK; NIC is Class 4 (6% / 2%).
- Income tax bands: same as PAYE rUK
- Class 4 NIC: 6% (£12 570–£50 270) / 2% above
- No Class 2 NIC (abolished April 2024)
- VAT threshold: £90 000 turnover
- Optional monthly_costs ExtraField
When monthly_costs = 0 and Class 2 is excluded, byte-for-byte equivalent to the previous v1 default for /uk/?type=b2b. Phase B model — VAT is a pass-through and does NOT enter the gross→net pipeline.
Inside IR35 / Umbrella
Engagement fails IR35 tests, or umbrella employment
Engagement fails one or more IR35 tests, or the contractor uses an umbrella company. HMRC treats the income as employment income (deemed payment). Net is materially lower than outside IR35 — typically ~80% of the equivalent outside-IR35 take-home at £60 000–£150 000 revenue.
- Flat umbrella margin (£15–£30/week)
- Apprenticeship Levy 0.5% (employer-side)
- Employer NIC: 15% above £5 000
- PAYE on deemed payment (income tax + Class 1 NIC)
- No dividend optimisation
Inside-IR35 limited-company and umbrella employment are modelled identically (deemed payment). Compare against Outside IR35 to see the IR35 cost — typically 18–22% of take-home at IT contractor revenue.
Official sources for United Kingdom
The rates and thresholds above are taken from HM Revenue & Customs — 2026/27 tax year thresholds.
Figures are estimates for the 2026 tax year and exclude personal circumstances such as joint filing, dependants, regional surcharges and one-off reliefs unless stated above. See how we calculate and the official sources behind these numbers.
Frequently asked questions
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.
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.
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.
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.
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.
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.
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.