How take home pay is worked out
- Pension comes off first. In a net pay pension scheme your contribution is taken before Income Tax, so you get tax relief straight away. National Insurance is still charged on the full salary.
- Personal Allowance. The first £12,570 of taxable income is tax free. It falls by £1 for every £2 of income above £100,000 and is gone at £125,140.
- Income Tax bands. 20% on the next £37,700, 40% up to £125,140 and 45% above that.
- National Insurance. Employees pay 8% on earnings between £12,570 and £50,270 a year and 2% above that.
2026/27 Income Tax and National Insurance rates
| Band | Taxable income | Income Tax |
|---|---|---|
| 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% |
| Earnings per year | Employee National Insurance |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Over £50,270 | 2% |
The employee thresholds are set per pay period (£242 a week, £1,048 a month up to £967 a week, £4,189 a month), so a payslip can differ by a few pence from the yearly figures.
Worked example
A salary of £35,000 with a 5% pension contribution: the pension is £1,750, leaving £33,250 of taxable pay. After the £12,570 Personal Allowance, £20,680 is taxed at 20%, which is £4,136 of Income Tax. National Insurance is 8% of £22,430 = £1,794.40. Take home pay is £27,319.60 a year, or about £2,276.63 a month.
The 60% tax trap between £100,000 and £125,140
Because the Personal Allowance is withdrawn in this range, every extra £1 earned costs 40p of tax plus 20p from the lost allowance, an effective 60% (62% with National Insurance). Paying more into a pension is the usual way to bring income back under £100,000.
Sources
Frequently asked questions
How much is £35,000 after tax in the UK?
About £28,720 a year (£2,393 a month) with no pension, or £27,320 (£2,277 a month) with a 5% pension contribution, using 2026/27 rates for England, Wales and Northern Ireland.
How much tax do I pay on £50,000?
With no pension, Income Tax is £7,486 and employee National Insurance is £2,994.40, leaving £39,519.60 a year in take home pay.
Is the Personal Allowance still £12,570?
Yes, it is £12,570 for 2026/27. It falls by £1 for every £2 of income above £100,000 and is zero at £125,140.
Does this calculator work for Scotland?
No. Scotland sets its own Income Tax bands. National Insurance is the same across the UK.
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Last updated October 2026.