United Kingdom · Updated for 2026/27
UK pay and tax guides for 2026/27
Four things come off UK pay before it reaches you: income tax, National Insurance, any student loan and your pension. These guides explain each one in plain English, with worked examples on real salaries.
- UK income tax rates and bands for 2026/27 How UK income tax works in 2026/27: the £12,570 allowance, the 20%, 40% and 45% bands, and worked examples on real salaries, in plain English.
- National Insurance 2026/27: UK rates and thresholds What employee National Insurance is, the 8% and 2% rates for 2026/27, the £12,570 and £50,270 thresholds, and why a bonus month is different.
- Scottish income tax bands for 2026/27 The six Scottish income tax bands for 2026/27, from the 19% starter rate to the 48% top rate, and who pays more or less than in the rest of the UK.
- Student loan repayments and thresholds for 2026/27 How much you repay on Plan 1, 2, 4, 5 and the Postgraduate Loan in 2026/27, with the thresholds, what happens with two plans, and worked examples.
- Pension tax relief in the UK: the three types Relief at source, net pay and salary sacrifice compared on the same salary, with what each one costs your take-home pay and how to claim extra relief.
- The UK 60% tax trap: £100,000 to £125,140 Why pay between £100,000 and £125,140 is taxed at 60%, how much allowance you lose, and how pension contributions can get it back. With examples.
- UK tax codes explained: 1257L, K, BR, D0 and more What your UK tax code means: 1257L, the S and C prefixes, K codes, BR, D0, D1, NT, 0T and the emergency W1, M1 and X codes, with what each does to your pay.
- Employer National Insurance 2026/27: what you cost How employer National Insurance works in 2026/27: 15% over £5,000 a year, what you really cost to employ, and how salary sacrifice changes it.
- What changed for UK take-home pay in 2026/27 What changed for UK take-home pay in the 2026/27 tax year: frozen allowances, new Scottish bands and higher student loan thresholds, with examples.
About the guides
Who writes these guides?
The My Salary Calculator team. Every guide is our own plain-English writing, and every worked example is calculated by the same engine as the calculator.
How up to date are they?
They cover 2026/27. The date the figures were last checked is shown on every guide, and every figure is listed on our sources page.
Is this tax advice?
No. The guides explain how the rules work for typical employees. For your own situation, use GOV.UK or ask HMRC or a qualified adviser.
Do the guides cover self-employment?
Not yet. They are written for employees paid through PAYE.
Can I suggest a guide?
Yes, please. Email hello@mysalarycalculator.app.