UK Take-Home Pay Calculator
Estimate annual and monthly net income after Income Tax and employee or self-employed National Insurance for the 2026/27 tax year.
Income details
Estimated take-home pay
Annual breakdown
| Component | Method | Annual amount |
|---|---|---|
| Gross income | Employment + self-employment + rental | £60,000.00 |
| Income Tax | Progressive bands after Personal Allowance | £11,432.00 |
| Class 1 National Insurance | Employment earnings thresholds | £3,209.60 |
| Class 4 National Insurance | Self-employed profit thresholds | £0.00 |
| Take-home pay | Gross less Income Tax and NI | £45,358.40 |
How to use the UK take-home pay calculator
What this calculator does
This calculator estimates how much annual and monthly income remains after UK Income Tax and the most common employee and self-employed National Insurance charges. It combines employment pay, self-employment taxable profit and rental taxable profit, applies the standard Personal Allowance and progressive tax bands, then subtracts Class 1 NI from employment income and Class 4 NI from self-employment profit. It is a planning estimate rather than a payslip or Self Assessment calculation: it does not model individual tax codes, pension salary sacrifice, student loans, taxable benefits, savings, dividends, capital gains or special NI categories.
When to use it
Use it when comparing a job offer with freelance income, estimating the cash effect of adding rental profit, checking whether a move to Scotland changes income tax, or building a simple monthly household budget from annual gross income. It is also useful for a first-pass comparison between employed and self-employed income mixes, because the two sources attract different National Insurance classes.
How to calculate
- The calculator opens with a complete demonstration: £60,000 employment income for 2026/27 in England, Wales or Northern Ireland. Results and a validated example Excel workbook are ready immediately.
- Select Location and Tax year. Replace each income value with an annual amount. Use digits with an optional decimal point and standard comma grouping; do not enter scientific notation or decimal commas.
- Read Annual take-home pay first, then compare the monthly value, Income Tax, National Insurance and effective deduction rate. The annual breakdown shows how each amount is formed.
- Select Download Excel to export the current typed inputs and canonical results. Reset clears the demonstration and all results; Excel is then disabled until at least one valid income amount is entered again.
Input guide
Location is required and accepts either “England, Wales or Northern Ireland” or “Scotland.” Scotland has separate rates and bands for non-savings, non-dividend income, so changing this control may change Income Tax but not the standard employee NI calculation. Tax year is required and currently supports 2026/27 and 2025/26. Tax rates can change each April, so use the year matching the income period. The official UK Income Tax rates and Personal Allowance guidance explains the standard bands and allowance taper.
Employment income is optional unless it is your only income source. Enter annual gross pay in pounds, such as 60000. It drives Income Tax and employee Class 1 NI; higher values usually increase both. Do not enter monthly pay or net pay. Self-employment net income is optional and means annual taxable profit after allowable expenses, not sales turnover. It drives Income Tax and Class 4 NI; for example, 18000 represents £18,000 profit. Rental net income is optional and means taxable annual property profit, not gross rent. It increases total taxable income but does not attract Class 1 or Class 4 NI in this simplified model. All three money fields accept zero or positive values up to £100 million; negative losses are outside this calculator's scope.
Output guide
Annual take-home pay is estimated gross income less Income Tax and National Insurance. Monthly take-home pay divides the annual estimate by 12; it is a budgeting conversion, not a payroll-period calculation. Total annual income is the exact sum of the three income inputs. Income Tax is the progressive tax estimate after the Personal Allowance and its taper above £100,000. National Insurance combines Class 1 and Class 4 estimates. Effective deduction rate is total Income Tax and NI divided by total income. A zero rate means no modelled deductions; a higher rate means a larger share of gross income is being deducted, not that every pound is taxed at that rate.
Worked example
With the opening values – £60,000 employment income, no self-employment or rental profit, 2026/27, and England/Wales/Northern Ireland – the standard Personal Allowance is £12,570. Taxable income is £47,430. The first £37,700 is taxed at 20% (£7,540) and the remaining £9,730 at 40% (£3,892), producing £11,432 Income Tax. Employee NI is 8% between £12,570 and £50,270 plus 2% above £50,270, producing £3,209.60. The result is £45,358.40 annual take-home pay, or £3,779.87 per month, with a 24.40% effective deduction rate. HMRC's National Insurance rate guide provides the current employee thresholds.
How the estimate works
The Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and reaches zero at £125,140. For England, Wales and Northern Ireland, taxable non-savings income is then charged at 20%, 40% and 45% across the applicable bands. Scotland uses starter, basic, intermediate, higher, advanced and top rates; the Scottish Government's 2026/27 rate table gives those thresholds.
National Insurance is source-specific. Employment income uses annualised Class 1 thresholds and category A rates. Self-employment profit uses Class 4 thresholds and rates. HMRC's detailed National Insurance rates and allowances publication documents both. Actual payroll NI can differ slightly because employers normally calculate it by pay period, while this planning tool uses annual thresholds.
Common interpretation mistakes
- Do not treat the effective deduction rate as your marginal tax rate. Progressive bands mean only the slice inside each band is charged at that rate.
- Use taxable profit for self-employment and rental activity, not revenue or rent collected.
- Do not use the result as personalised tax advice. A tax code, pension contribution, student loan, benefits package or other income can materially alter the final amount.