How take-home pay is calculated

Take-home pay is gross pay minus income tax, employee National Insurance, student loan repayments and any pension contributions. Income tax uses the personal allowance first, then the tax bands; National Insurance is charged on earnings above the primary threshold (8% up to the upper earnings limit, then 2%); student loans take 9% (6% for postgraduate) of income above the plan's threshold.

Worked example for £30,000 (2026/27, England/Wales/NI, no pension, no loan):

Gross

£30,000

Personal allowance

£12,570

Taxable income

£17,430

Income tax (20%)

£3,486.00

Employee NI (8%)

£1,394.40

Take-home

£25,119.60

Scotland applies its own six income tax bands; National Insurance and student loans are UK-wide. Full sources and rounding rules are on the methodology page.