What is the Personal Allowance taper?

For income between £100,000 and £125,140, the £12,570 Personal Allowance is reduced by £1 for every £2 earned above £100,000, reaching £0 at £125,140 — an effective 60% marginal tax rate on that slice of income.

Does this include pension contributions or student loan repayments?

No — this is a simplified gross-to-net calculation covering only Income Tax and Class 1 employee National Insurance.

Why does my payslip show a slightly different National Insurance figure?

Employers calculate NI per pay period rather than as a smooth annual calculation, so bonuses or irregular pay can produce a slightly different total than this annual approximation.

Is this the same as what my employer withholds via PAYE?

It should be close for a standard tax code and steady salary, but PAYE also accounts for your specific tax code and benefits-in-kind.

What tax year does this use?

The 2026/27 UK tax year, running 6 April 2026 to 5 April 2027. All three Income Tax thresholds are unchanged from 2025/26.

Does National Insurance stop after a certain age?

Yes — employees stop paying Class 1 National Insurance once they reach State Pension age.

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UK Income Tax & National Insurance Calculator

Take-home pay after 2026/27 Income Tax bands and Class 1 National Insurance.

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Last reviewed 2026-08-30

About the UK Income Tax & National Insurance Calculator

Calculates UK take-home pay from a gross annual salary using 2026/27 Income Tax bands (England, Wales & Northern Ireland) and Class 1 employee National Insurance, including the Personal Allowance taper above £100,000.

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How to use it

Enter your gross annual salary.
Read your take-home pay, Income Tax, and National Insurance in the result panel.
Check the Personal Allowance used — it starts tapering above £100,000 income.

Formula

Personal Allowance = £12,570, reduced £1 for every £2 of income above £100,000, fully gone at £125,140. Income Tax: 20% on taxable income up to £37,700 above the allowance (up to £50,270 total income), 40% on the next £74,870 (up to £125,140), 45% above. Class 1 employee National Insurance: 0% up to £12,570, 8% between £12,570 and £50,270, 2% above £50,270. Take-home pay = income − Income Tax − National Insurance.

Worked example

A £45,000 gross salary: full £12,570 Personal Allowance, £32,430 taxable at 20% = £6,486 Income Tax, plus 8% National Insurance on the same £32,430 = £2,594, for a take-home pay of about £35,920 — an effective combined rate of roughly 20.2%.

2026/27 Income Tax bands (England, Wales & Northern Ireland)

2026/27 Income Tax bands (England, Wales & Northern Ireland)
Band	Taxable income	Rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571 – £50,270	20%
Higher rate	£50,271 – £125,140	40%
Additional rate	Over £125,140	45%

Interpreting your result

Covers England, Wales & Northern Ireland rates only — Scotland sets its own Income Tax bands, not modeled here. Assumes a standard tax code, one employment, and no salary sacrifice, pension contributions, or student loan deductions. Not tax advice.

Recommendations

• Between £100,000 and £125,140, the Personal Allowance taper creates an effective marginal rate of 60% on that slice of income — pension contributions are a common way to bring adjusted net income back under £100,000.
• National Insurance is calculated per pay period by employers, not annually — this tool's annual approximation can differ slightly from your actual payslip in a year with irregular pay.
• Scotland's Income Tax bands differ from the rest of the UK — if you're a Scottish taxpayer, this calculator's Income Tax figure won't apply, though the National Insurance figure still will.

Frequently asked questions

No — Scotland has its own Income Tax bands set by the Scottish Parliament. This calculator uses England/Wales/Northern Ireland rates only; Scottish National Insurance still follows the same UK-wide rates shown here.