Free Payroll Calculator UK 2026
Calculate your exact take-home pay for 2026/27. Instant monthly salary calculator, weekly pay breakdown, and accurate tax deductions using latest HMRC rates.
This UK payroll calculator shows you exactly how much money you will take home from any salary or hourly wage in 2026. Whether you call it a take-home pay calculator, monthly salary calculator, or wage calculator, the purpose is the same: turn your gross pay into an accurate net figure after income tax, National Insurance, pension contributions and student loan deductions.
Payroll calculations in the UK involve multiple layers. HMRC takes income tax using PAYE bands that vary by region, National Insurance contributions apply at two different rates depending on your earnings, workplace pensions typically deduct 5% of qualifying earnings, and student loan repayments kick in at specific thresholds. This free payroll calculator handles all of those automatically, giving you weekly, monthly and annual breakdowns in seconds.
If you are comparing job offers or planning a budget, knowing your real monthly take-home pay matters more than the headline salary. A £35,000 job offer sounds attractive until you realise £27,200 is what actually reaches your bank account each year. This tool gives you that clarity instantly, and if you need to compare multiple offers side by side, use the Job Offer Comparison Tool to weigh up salary against benefits, commute costs and other factors.
Accurate PAYE Calculations
Uses official 2026/27 tax bands for England, Wales, Scotland and Northern Ireland.
Complete Breakdown
See exactly how much goes to tax, NI, pension and student loans every month.
Instant Results
Get your take-home pay in under 5 seconds. No sign-up, no adverts blocking results.
100% Private
All calculations happen in your browser. No salary data stored or shared.
When to use this payroll calculator
- Job offer evaluations: Convert the annual salary into real monthly take-home pay before accepting.
- Budget planning: Know your exact net income for rent, bills, savings and spending calculations.
- Pay rise negotiations: See how a £3,000 salary increase translates to actual monthly gains after tax.
- Career switches: Compare your current take-home pay against potential new roles in different sectors.
- Freelance to PAYE moves: Understand how employed payroll differs from self-employed net income.
- Student loan planning: Calculate how much of your salary goes to Plan 1, Plan 2 or postgraduate loan repayments.
Calculate Your UK Take-Home Pay
Enter your salary details below for an instant payroll calculation. All fields help create accurate results.
How This UK Payroll Calculator Works
This payroll calculator follows the exact same process HMRC and UK payroll software use to calculate take-home pay from gross salary. Here is the step by step breakdown of what happens when you click calculate.
Convert to Annual Gross Salary
If you entered a monthly salary, the calculator multiplies by 12 to get annual gross. For hourly wages, it multiplies your rate by weekly hours, then by 52 weeks. This creates a standardised annual figure for all tax calculations, because UK income tax works on annual earnings.
Apply Pension Deduction (if applicable)
If you selected salary sacrifice pension, this amount is deducted from your gross salary before calculating tax and NI. For example, a 5% pension on £30,000 removes £1,500, leaving £28,500 taxable income. This saves you both income tax and National Insurance on the pension contribution. Relief at source pensions are deducted after tax instead.
Calculate Personal Allowance
Your tax code determines your personal allowance (the amount you earn tax-free each year). The standard 1257L code gives £12,570 personal allowance for 2026/27. If your code is different, the calculator extracts the allowance from it. For high earners above £100,000, the personal allowance reduces by £1 for every £2 over the threshold until it reaches zero at £125,140.
Apply Income Tax Bands
The calculator applies UK PAYE tax rates in stages. For England, Wales and Northern Ireland: 0% on the first £12,570 (personal allowance), 20% on £12,571 to £50,270 (basic rate), 40% on £50,271 to £125,140 (higher rate), and 45% above £125,140 (additional rate). Scotland uses six different bands with rates from 19% to 48%. The calculator automatically selects the correct bands based on your chosen region.
Calculate National Insurance
National Insurance (Class 1 employee contributions) applies at two rates in 2026/27. You pay 8% on earnings between £12,570 and £50,270 per year, then 2% on anything above £50,270. The first £12,570 is NI-free (the primary threshold). If you chose salary sacrifice pension, NI is calculated on the reduced salary, saving you money.
Deduct Student Loan Repayments
If you selected a student loan plan, repayments are calculated on earnings above the threshold. Plan 1 deducts 9% above £26,065, Plan 2 takes 9% above £28,470, Plan 4 (Scotland) deducts 9% above £32,745, and Postgraduate loans take 6% above £21,000. You can repay multiple loan types simultaneously if you have both undergraduate and postgraduate loans.
Calculate Monthly and Weekly Figures
Once annual tax, NI, pension and student loan deductions are totalled, they are subtracted from gross salary to give annual net pay. The calculator then divides by 12 for monthly take-home pay and by 52 for weekly figures. Hourly net rate is calculated by dividing annual net pay by total annual hours worked (weekly hours × 52).
Show Employer Costs (Optional)
If you ticked the employer costs box, the calculator adds employer National Insurance contributions at 15% on earnings above £5,000 per year. This shows the total cost to employ someone, not just what they receive. For example, a £30,000 employee actually costs the employer around £33,750 once employer NI is included. Use the Total Cost of Employee Calculator for more detailed employer cost analysis.
Accuracy Note: This payroll calculator uses official HMRC rates for 2026/27 and follows standard PAYE methodology. Results match what you would see on a UK payslip to within pennies for typical employment situations. However, some specialist circumstances (emergency tax codes, cumulative tax adjustments, statutory payments, benefits in kind) are not covered. Always check your actual payslip for your precise deductions.
Real Example: Sarah, Marketing Executive in Bristol
Sarah's Situation
- Gross Annual Salary: £32,000
- Tax Code: 1257L (standard)
- Region: England
- Pension: 5% salary sacrifice
- Student Loan: Plan 2
- Working Pattern: Full-time employed
Payroll Calculation Breakdown
Step 1: Apply Pension
5% salary sacrifice = £1,600 per year
Taxable salary = £32,000 - £1,600 = £30,400
Step 2: Calculate Income Tax
- Personal allowance: £12,570 (tax-free)
- Taxable income: £30,400 - £12,570 = £17,830
- Tax at 20% (basic rate): £17,830 × 20% = £3,566 per year
- Monthly tax: £297.17
Step 3: Calculate National Insurance
- NI threshold: £12,570
- NI-able income: £30,400 - £12,570 = £17,830
- NI at 8%: £17,830 × 8% = £1,426.40 per year
- Monthly NI: £118.87
Step 4: Calculate Student Loan (Plan 2)
- Plan 2 threshold: £28,470
- Income above threshold: £30,400 - £28,470 = £1,930
- Repayment at 9%: £1,930 × 9% = £173.70 per year
- Monthly student loan: £14.48
Final Results
Annual Net Pay: £24,233.90
Monthly Take-Home: £2,019.49
Weekly Take-Home: £465.96
Sarah takes home roughly 75.7% of her gross salary. The salary sacrifice pension saves her £320 per year in tax and NI compared to relief at source pensions. If she wants to compare this against a £35,000 role in London, the London Weighting Calculator would show whether the higher salary compensates for London's cost of living.
Payroll Calculator UK FAQs
How accurate is this UK payroll calculator?
This payroll calculator uses official HMRC tax rates and National Insurance thresholds for the 2026/27 tax year. It calculates income tax using current PAYE bands (20%, 40%, 45% for England/Wales/NI, or the six Scottish rates), applies Class 1 NI contributions at 8% and 2% rates, and deducts pension contributions and student loans where applicable.
Results match what you would see on a real UK payslip, accurate to within pennies for standard employment situations. The calculator handles salary sacrifice pensions correctly (reducing both tax and NI), applies the right student loan thresholds for each plan type, and correctly calculates personal allowance tapering for high earners above £100,000.
However, some complex scenarios are not covered: emergency tax codes (BR, 0T, etc.), cumulative tax adjustments mid-year, statutory sick/maternity pay, benefits in kind (company cars, medical insurance), or Scottish councils with additional local taxes. For those situations, consult your employer's payroll team or use HMRC's official calculator as a cross-reference.
What is the difference between gross salary and take-home pay?
Gross salary is your total earnings before any deductions. This is the number quoted in job adverts and employment contracts. Take-home pay (also called net salary or net pay) is what actually lands in your bank account after income tax, National Insurance, pension contributions, and student loan repayments are deducted.
For example, a £30,000 gross salary typically results in around £24,500 take-home pay annually for someone with standard tax code, 5% pension and no student loan. That is roughly £2,040 per month net. The difference (about £5,500 per year) goes to HMRC in tax and NI, plus pension savings.
Understanding this gap is crucial when budgeting or comparing job offers. A £35,000 role might sound much better than £30,000, but the actual monthly difference in your bank account is closer to £320 after all deductions, not the £416 you might expect from the gross difference alone.
Does this payroll calculator work for Scotland?
Yes. This UK payroll calculator fully supports Scottish income tax rates, which have been different from England, Wales and Northern Ireland since 2017. Scotland has six income tax bands for 2026/27:
- Starter rate: 19% on £12,571 to £15,397
- Basic rate: 20% on £15,398 to £27,491
- Intermediate rate: 21% on £27,492 to £43,662
- Higher rate: 42% on £43,663 to £75,000
- Advanced rate: 45% on £75,001 to £125,140
- Top rate: 48% on above £125,140
Simply select Scotland as your tax region and the calculator automatically applies these Scottish PAYE rates instead of the rest-of-UK bands. National Insurance rates are the same across the whole UK, so NI calculations do not change based on location. If you work in Scotland but live in England (or vice versa), your tax is based on where you live, not where you work, so choose your home country.
Can I use this for hourly wage calculations?
Absolutely. Click the "Hourly Wage" tab, enter your hourly rate and average weekly hours, and the payroll calculator converts this to annual gross salary before calculating tax, National Insurance and take-home pay. You will see full breakdowns for hourly, weekly, monthly and annual figures.
This works perfectly for part-time workers, zero-hours contracts, gig economy roles, or anyone paid by the hour who wants to understand their real net income. For example, £12.50 per hour for 25 hours per week gives £16,250 gross annually, which works out to around £15,350 net (roughly £1,279 per month) after tax and NI.
The calculator also shows your effective hourly net rate, so you can see what you are truly earning per hour after deductions. For workers who also do overtime, check the Overtime Pay Calculator UK to model how extra hours affect your take-home at time-and-a-half or double-time rates.
How do I calculate my monthly take-home pay from annual salary?
Enter your annual gross salary into the payroll calculator and it automatically shows your monthly take-home pay after all deductions. The calculator divides your annual net pay by 12 to give you the exact monthly amount you can expect in your bank account.
For example, a £40,000 annual salary with standard deductions (1257L tax code, 5% pension, no student loan, England region) gives approximately £29,900 net annually, which is £2,491.67 per month. This includes accurate monthly tax (£458.33), NI (£183.33), and pension (£166.67) deductions spread evenly across the year.
Some employers pay slightly different amounts each month due to how they calculate tax and NI (some use exact monthly rates, others divide annual by 12), but the total annual figures will match. If you receive bonuses or commission on top of your base salary, use the Commission Calculator UK to see how those extra payments are taxed.
Data Sources & Calculation Accuracy
This UK payroll calculator implements the official HMRC tax and National Insurance calculation methodology for the 2026/27 tax year (6 April 2026 to 5 April 2027). All rates, thresholds and rules are sourced from HMRC published guidance to ensure accurate take-home pay calculations.
Official HMRC Sources
- HMRC Income Tax Rates: Official PAYE tax bands and personal allowance thresholds for England, Wales, Northern Ireland and Scotland published by HM Revenue & Customs.
- National Insurance Rates: Class 1 employee and employer NI contribution rates and earnings thresholds from HMRC guidance for employers.
- Student Loan Thresholds: Plan 1, Plan 2, Plan 4 and Postgraduate loan repayment thresholds and rates from Student Loans Company and HMRC.
- Pension Rules: Salary sacrifice and relief at source pension treatment based on HMRC pension tax relief guidelines and auto-enrolment regulations.
Key Reference: GOV.UK Rates and Thresholds for Employers 2025 to 2026
2026/27 Tax Year Rates Used
- Personal Allowance: £12,570 (standard 1257L tax code)
- Income Tax (England/Wales/NI): 20% basic, 40% higher, 45% additional
- Income Tax (Scotland): Six bands from 19% starter to 48% top rate
- NI Primary Threshold: £12,570 per year (£242 per week, £1,048 per month)
- NI Rates: 8% on £12,570 to £50,270, then 2% above £50,270
- Employer NI: 15% on earnings above £5,000 per year (secondary threshold)
- Student Loan Plan 1: 9% above £26,065
- Student Loan Plan 2: 9% above £28,470
- Student Loan Plan 4: 9% above £32,745
- Postgraduate Loan: 6% above £21,000
Calculation Limitations
- Standard Employment Only: This calculator assumes standard PAYE employment. It does not cover self-employment, sole traders, limited company dividends, or IR35 inside determinations.
- No Benefits in Kind: Company cars, private medical insurance, living accommodation and other taxable benefits are not included. These are added to your tax code by HMRC and reduce your personal allowance.
- No Statutory Payments: Statutory sick pay, maternity pay, paternity pay or parental leave calculations are not covered. Use specialist calculators for those scenarios.
- Emergency Tax Codes Not Supported: BR (basic rate all income), 0T (no personal allowance), and week 1/month 1 emergency codes require different calculations not covered here.
- No Cumulative Adjustments: Real payroll can adjust tax mid-year if you change jobs or have multiple employments. This calculator shows steady-state annual figures only.
Disclaimer: This free payroll calculator is for estimation and planning purposes only. It is not a substitute for professional payroll advice or official HMRC guidance. While we use official tax rates and standard methodology, your actual take-home pay may differ due to employer-specific pension schemes, benefits, tax code adjustments, or other circumstances. Always verify against your actual payslip. FastJobs UK accepts no liability for decisions made based on these calculations.
Privacy & Data Security
This UK payroll calculator runs entirely in your browser. No salary data, tax codes, or personal information is sent to any server, stored in any database, or shared with third parties. Here is exactly what happens to your data:
✅ What We Do NOT Do
- Store your salary, tax code, or any payroll details in a database
- Share your income information with HMRC, employers, recruiters or anyone else
- Track individual users or create profiles based on salary searches
- Require email addresses, registration, or login to use the calculator
- Use cookies specific to this calculator (general site analytics may apply)
- Sell or monetise your payroll data in any way
🔒 How Calculations Work
- All calculations happen in your browser using JavaScript
- Inputs are processed locally on your device only
- Results appear instantly without server communication
- Close the browser tab and all data disappears from your session
- No permanent record of your salary or calculations is kept anywhere
- Anonymous usage statistics may be collected (e.g. "calculator used 500 times today") but never linked to individuals or specific salaries
For general website privacy practices including advertising and analytics, see the main FastJobs UK privacy policy. This payroll calculator itself adds no extra tracking beyond standard site-wide mechanisms and never stores your financial information.