HOW OUR SALARY CALCULATOR WORKS

Here is the maths.

We want every estimate to be easy to understand and easy to question. These are the tax rules, assumptions and limits used across The Salary Hub.

Tax year: 6 April 2026 to 5 April 2027

01 / Income Tax

Tax is paid in slices.

For England, Wales and Northern Ireland, the standard Personal Allowance is £12,570. Taxable employment income is then charged at 20% on the first £37,700, 40% on the next slice up to £125,140, and 45% above that.

The Personal Allowance shrinks by £1 for every £2 of adjusted net income above £100,000. It reaches zero at £125,140. The standard calculator's pension input models salary sacrifice, reducing pay used for Income Tax and National Insurance. The NHS calculator treats NHS Pension Scheme contributions as net-pay deductions instead.

Scotland has its own employment income bands: 19% on the first £3,967 of taxable income, 20% to £16,956, 21% to £31,092, 42% to £62,430, 45% to £125,140 and 48% above. These figures are taxable income after any Personal Allowance.

Official sources: GOV.UK Income Tax rates and GOV.UK Scottish Income Tax.

02 / National Insurance

A separate deduction.

For a typical employee in category A, the annualised estimate applies 8% to earnings between £12,570 and £50,270, then 2% above £50,270. National Insurance is shown separately from Income Tax.

Real employers calculate NI by pay period, so our annual estimate may differ slightly from a payslip, especially where pay changes during the year.

Official source: GOV.UK employer rates and thresholds, 2026/27.

03 / Student loans

Your plan matters.

Optional student loan estimates use 9% of pay above the annual threshold for undergraduate plans, or 6% above the postgraduate threshold. The 2026/27 thresholds used are £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 (Postgraduate).

We model one loan plan at a time and annualise the result. Actual deductions depend on pay periods and loan notices received by your employer.

Official source: GOV.UK student and postgraduate loan deduction tables, 2026/27.

04 / Our assumptions

What to expect.

All examples assume a standard PAYE employee with the usual Personal Allowance and Class 1 category A National Insurance. Take home per month is annual take home divided by 12; per week is divided by 52; per working day is divided by 260.

We do not account for unusual tax codes, other taxable income, benefits in kind, multiple jobs, employer pension contributions, relief at source pensions, child benefit charges or employer specific payroll rules. The figures are estimates for comparison and planning.

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