PAYE Calculator UK 2026/27
Use our free paye calculator uk to calculate your exact monthly and weekly PAYE wage deductions for the 2026/27 tax year. Instantly calculate HMRC Income Tax, Class 1 National Insurance, workplace pensions, student loans, and net take-home pay under UK Real Time Information (RTI) payroll rules.
Enter your agreed gross contractual salary before tax and deductions.
Standard allowance code is 1257L (£12,570 tax-free).
Additional annual bonus or commission subject to PAYE.
Auto-enrolment standard employee contribution is 5%.
Salary exchange exempts contributions from NI.
Cycle to Work scheme, EV car lease, or childcare vouchers.
| Frequency | Gross Salary | Income Tax | Nat. Ins. | Net Salary |
|---|---|---|---|---|
| Annual | £35,000.00 | £4,486.00 | £1,794.40 | £26,969.60 |
| Monthly | £2,916.67 | £373.83 | £149.53 | £2,247.47 |
| Weekly | £673.08 | £86.27 | £34.51 | £518.65 |
| Daily (5-Day) | £134.62 | £17.25 | £6.90 | £103.73 |
Estimates calculated in accordance with HMRC PAYE and National Insurance rates for the 2026/27 tax year. Individual payroll payslips may vary based on exact payroll software rounding, mid-year tax code changes, and employer-specific benefit schemes.
How PAYE Works in the UK (2026/27 Tax Year)
Pay As You Earn (PAYE) is the statutory system created by HM Revenue & Customs (HMRC) to collect Income Tax and employee National Insurance contributions (NICs) from employment earnings as you earn them. Rather than paying a large tax bill at the end of the year, your employer automatically deducts tax and National Insurance before depositing your net pay into your bank account.
Our comprehensive paye calculator uk models the exact payroll algorithms used by UK employers and HMRC for the 2026/27 tax year (running from 6 April 2026 to 5 April 2027). Whether you are negotiating a new job offer, comparing monthly take-home pay, or checking your payslip, this tool provides real-time estimates of your income tax, employee NICs, pension contributions, and student loan repayments. For related calculations, explore our core take home pay calculator, our comprehensive salary calculator uk, our net salary calculator, and our dedicated paye income tax calculator.
The Mechanics of PAYE Payroll: What Gets Deducted?
When you receive your monthly or weekly payslip, several distinct deductions are calculated by your employer’s HMRC-compliant Real Time Information (RTI) payroll software:
- PAYE Income Tax: Computed on your taxable earnings above your allocated Personal Allowance (£12,570 for code 1257L), using the 20%, 40%, and 45% statutory bands (or devolved Scottish rates).
- Class 1 Employee National Insurance: Deducted at 8% on monthly earnings between the Primary Threshold (£1,048/month) and the Upper Earnings Limit (£4,189/month), and 2% on earnings above £4,189/month.
- Workplace Pension Contributions: Under automatic enrolment legislation, eligible employees typically contribute a minimum of 5% (with an employer minimum of 3%).
- Student Loan Repayments: Plan 1, Plan 2, Plan 4 (Scotland), Plan 5, or Postgraduate loans deducted if earnings exceed statutory plan thresholds.
Understanding Your PAYE Tax Code in 2026/27
Every employee has a tax code issued by HMRC. This code tells payroll software how much tax-free pay you are entitled to in each pay period:
| Tax Code | Annual Tax-Free Allowance | Monthly Allowance | Typical Use Case |
|---|---|---|---|
| 1257L | £12,570 | £1,047.50 | Standard UK code for one job with basic allowance. |
| S1257L | £12,570 | £1,047.50 | Scottish tax resident (applies 6 Scottish tax bands). |
| C1257L | £12,570 | £1,047.50 | Welsh tax resident (Welsh rates aligned to rUK). |
| BR | £0 | £0.00 | Basic Rate: flat 20% on all earnings (often second jobs). |
| 0T | £0 | £0.00 | No allowance, but standard progressive tax bands apply. |
| D0 / D1 | £0 | £0.00 | All earnings taxed at 40% (D0) or 45% (D1). |
| K Codes (e.g. K500) | Negative Allowance | Extra taxable pay | Company car or benefits exceed your Personal Allowance. |
Cumulative vs Non-Cumulative (Week 1 / Month 1) Emergency Codes
A central feature of the UK PAYE system is the distinction between cumulative and non-cumulative (emergency) payroll processing:
- Cumulative Basis (Standard): In month 6 (September), payroll calculates tax on your total cumulative earnings since 6 April, giving you 6/12ths of your annual Personal Allowance (£6,285). If you had a lower salary earlier in the year or took unpaid leave, cumulative PAYE automatically refunds any overpaid tax in your next payslip.
- Non-Cumulative Basis (W1 / M1 Emergency Code): Marked as
1257L W1or1257L M1on your payslip. Each week or month is treated completely separately, ignoring earlier earnings and unused allowances. This commonly happens when starting a new job without a P45. Once HMRC updates your records, a cumulative code is issued and any overpaid tax is automatically refunded in your pay.
PAYE Income Tax Bands (England, Wales, Northern Ireland vs Scotland)
Income tax under PAYE is calculated in progressive bands. For England, Wales, and Northern Ireland in the 2026/27 tax year:
- Personal Allowance: Up to £12,570 • 0% tax.
- Basic Rate (20%): £12,571 to £50,270 (monthly slice: £1,047.58 to £4,189.17).
- Higher Rate (40%): £50,271 to £125,140 (monthly slice: £4,189.25 to £10,428.33).
- Additional Rate (45%): Over £125,140 (monthly earnings exceeding £10,428.33).
In Scotland, devolved powers establish six income tax bands ranging from the 19% Starter Rate to the 48% Top Rate. If you are a Scottish resident, your tax code will begin with S, and this paye tax calculator automatically computes your exact devolved tax liability.
National Insurance (NICs) Under PAYE for 2026/27
National Insurance contributions for employees (Class 1) are calculated on each pay period rather than cumulatively across the year:
- Primary Threshold (PT): £1,048 per month (£242 per week, £12,570 annually). No NICs are payable below this threshold.
- Main Rate (8%): Applies to earnings between £1,048 and £4,189 per month (£242 to £967 per week).
- Upper Earnings Limit (UEL – 2%): Applies to all earnings exceeding £4,189 per month (£967 per week).
Note that employers also pay secondary Class 1 NICs on behalf of employees, which does not reduce your gross wage but represents an employment on-cost.
PAYE Salary & Deductions Reference Table (2026/27)
The table below displays typical annual gross salaries with corresponding monthly gross, PAYE Income Tax, National Insurance, and monthly take-home pay based on standard tax code 1257L in England:
| Annual Gross | Monthly Gross | Monthly PAYE Tax | Monthly Class 1 NIC | Monthly Net Pay | Annual Take-Home |
|---|---|---|---|---|---|
| £20,000 | £1,666.67 | £123.83 | £49.49 | £1,493.35 | £17,920.20 |
| £25,000 | £2,083.33 | £207.17 | £82.83 | £1,793.33 | £21,520.00 |
| £30,000 | £2,500.00 | £290.50 | £116.16 | £2,093.34 | £25,120.08 |
| £35,000 | £2,916.67 | £373.83 | £149.53 | £2,393.31 | £28,719.72 |
| £45,000 | £3,750.00 | £540.50 | £216.16 | £2,993.34 | £35,920.08 |
| £50,000 | £4,166.67 | £623.83 | £249.49 | £3,293.35 | £39,520.20 |
| £60,000 | £5,000.00 | £952.67 | £267.50 | £3,779.83 | £45,357.96 |
| £75,000 | £6,250.00 | £1,452.67 | £292.50 | £4,504.83 | £54,057.96 |
| £100,000 | £8,333.33 | £2,286.00 | £334.17 | £5,713.16 | £68,557.92 |
Frequently Asked Questions About PAYE
Pay As You Earn (PAYE) is HM Revenue & Customs’ (HMRC) statutory system used by employers to deduct Income Tax and Class 1 employee National Insurance contributions (NICs) directly from your wages or occupational pension before you receive your net pay.
Our PAYE calculator UK takes your gross salary or hourly rate and divides your tax-free Personal Allowance (£12,570 for code 1257L) across your pay frequency. It then applies the progressive 2026/27 income tax bands (20%, 40%, 45% in England/Wales/NI, or 19% to 48% in Scotland) and calculates employee Class 1 NICs (8% between £1,048 and £4,189 per month, 2% above).
A standard cumulative tax code looks at your total earnings and tax allowances accumulated from the start of the tax year on 6 April, automatically balancing any overpayments. A non-cumulative emergency code (marked ‘W1’ or ‘M1’) treats each pay period in isolation without considering earlier earnings or unused allowances.
Your tax code dictates your tax-free allowance for each pay period. For 2026/27, standard code 1257L grants £12,570 annually (£1,047.50 per month). Emergency codes like BR tax all income at 20% flat, 0T gives zero allowance, and K codes add taxable benefits to your pay, deducting extra tax up to a maximum 50% statutory payroll cap.
Under Salary Sacrifice, your gross salary is legally reduced before Income Tax and National Insurance are computed, giving you maximum tax efficiency. Under Net Pay arrangements, contributions reduce your taxable pay for Income Tax but not National Insurance. Under Relief at Source, contributions are deducted after tax, and your pension provider claims 20% basic rate tax relief directly from HMRC.
When you receive a bonus or pay rise, your employer’s payroll software evaluates your cumulative year-to-date earnings. If the extra income pushes you into a higher tax band (e.g. above £50,270 into the 40% higher rate), the portion of the bonus exceeding the band threshold is taxed at the higher rate for that pay period.
• P45: Provided by your employer when you leave a job, detailing your total earnings and tax paid in the tax year to date.
• P60: An annual statement provided by 31 May following the end of the tax year on 5 April, summarizing your annual pay and tax deductions.
• P11D: Reports the cash value of employment benefits in kind (such as private medical insurance or company cars) that are subject to tax.
Yes. If you were on an emergency tax code (W1/M1), took a career break, or worked only part of the tax year, HMRC automatically reviews your PAYE records after 5 April and issues a P800 tax calculation. You can also claim a refund immediately by logging into your HMRC Personal Tax Account on GOV.UK.
Minor penny differences typically occur because payroll software uses HMRC exact table rounding per pay period (weekly or monthly), whereas annual calculators divide total annual tax into equal monthly instalments. Differences also arise from mid-year tax code changes or company benefit adjustments.