Salary calculator — take-home pay after tax and NI
Take-home pay after income tax, National Insurance and student loan, including the 60% band between £100,000 and £125,140 that no rate table shows.
Covers 2026-27 tax year · rates as at 2026-04-06
Take-home pay
Estimate£46,307
23.8% effective against a 40% marginal rate
- Income tax
- £12,132
- National Insurance
- £3,310.60
- Personal allowance
- £12,570
| Salary | £65,000 |
|---|---|
| Pension contribution | -£3,250.00 |
| Personal allowance | -£12,570 |
| Income tax | -£12,132 |
| National Insurance | -£3,310.60 |
| Take-home | £46,307 |
- Rest-of-UK rates. Scotland sets its own bands for non-savings income.
On £65,000 with £3,250 into a pension, £12,570 is tax free, the next £37,700 is taxed at 20% and the rest at 40%.
How this is calculated
How this is calculated
The 60% band nobody publishes
Above £100,000 the personal allowance falls by £1 for every £2 earned. Between £100,000 and £125,140 that makes the effective marginal rate 60%, not the 40% in the rate table — so a £1,000 pension contribution in that range costs you £400.
allowance = 12,570 − (income − 100,000) ÷ 2NI is charged on gross pay, tax is not
A personal pension contribution reduces income tax but not National Insurance. Salary sacrifice reduces both, which on £3,250 is an extra £260 at the 8% main rate — the same contribution, £260 apart.
NI = 8% between £12,570 and £50,270, then 2%Bands sit on top of the allowance
The £37,700 basic-rate band is measured after the personal allowance, so the higher rate starts at £50,270 of salary. Reading the band edge as a salary figure is the most common error in UK tax arithmetic.
Worked example: £65,000 salary with £3,250 into a pension
| Salary | £65,000 |
|---|---|
| Pension | £3,250 |
| Student loan | None |
| Personal allowance | £12,570 |
|---|---|
| Basic rate band | £37,700 at 20% |
| Remainder | At 40% |
Moving the same £3,250 to salary sacrifice would also cut National Insurance by around £260, for identical pension savings and no change in employer cost.
What this assumes
- Rest-of-UK rates; Scotland has different bands.
- Standard tax code with no adjustments.
- A single employment for the full tax year.
- Under state pension age, so NI applies.
Where this commonly goes wrong
- Losing child benefit through the high income charge stacks on the allowance taper, pushing the effective marginal rate above 60% for parents.
- Salary sacrifice beats a personal pension contribution on identical money, because it also avoids the 8% National Insurance.
- Student loan repayments are 9% of everything above the plan threshold and are collected regardless of the balance — they are not interest-sensitive.
Questions
What is my take-home pay on £65,000?
After £12,570 of tax-free allowance, 20% on the next £37,700 and 40% above that, plus National Insurance at 8% to £50,270 and 2% beyond, a £3,250 pension contribution leaves the rest as take-home.
Why is my marginal tax rate 60%?
Between £100,000 and £125,140 the personal allowance falls by £1 for every £2 earned, so £2 of extra income is taxed at 40% and another £1 of previously free income becomes taxable. That is 60% in effect, and it is in no rate table.
Should I use salary sacrifice or a personal pension?
Salary sacrifice, if your employer offers it. Both get income tax relief, but sacrifice also avoids the 8% National Insurance — worth about £260 on a £3,250 contribution, with many employers passing on their saving too.
When does the 40% rate start?
At £50,270 of salary — the £12,570 allowance plus the £37,700 basic-rate band. The band figure is measured after the allowance, which is why quoting £37,700 as the higher-rate threshold is wrong.
How much is National Insurance?
8% of earnings between £12,570 and £50,270, then 2% above that. It is charged on gross pay, so a personal pension contribution reduces income tax without reducing NI.
How are student loan repayments calculated?
A fixed percentage of income above your plan threshold — 9% for Plans 1, 2, 4 and 5, and 6% for postgraduate loans. The balance does not affect the amount, so overpaying only shortens the period.
Related tools
Sources
General estimate based on published HMRC rates for 2026-27 tax year. Not tax advice. Confirm your position with HMRC or a qualified adviser.
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