Income tax and take-home pay.

It uses the 2026/27 rates, bands and allowances and the standard rules for how different types of income are taxed. It is an estimate: it does not cover every relief, tax code adjustment or benefit in kind, and National Insurance is worked out on an annual basis, whereas payroll works it out pay period by pay period. For a figure you can rely on, ask us to check it.

Your total taxable income, less gross pension contributions paid under relief at source and gross Gift Aid donations. It decides whether you lose your personal allowance above £100,000 and whether the High Income Child Benefit Charge applies from £60,000.

Your £12,570 personal allowance is reduced by £1 for every £2 of adjusted net income over £100,000. In that band each extra £1 of salary costs 40p in tax, plus 20p from the lost allowance taxed at 40%, plus 2% National Insurance.

In England, Wales and Northern Ireland: 20% on taxable income up to £37,700, 40% up to £125,140 and 45% above, after a £12,570 personal allowance. Scotland has six rates on earnings, from 19% to 48%. Dividends are taxed at 10.75%, 35.75% and 39.35% after a £500 allowance.

Rental profit is added to your other income and taxed at your normal rates. Mortgage interest is not deducted; instead you get a tax credit of 20% of the interest. From 6 April 2027 property income is taxed at 22%, 42% and 47% in England and Northern Ireland.

Basic rate taxpayers have a £1,000 personal savings allowance and higher rate taxpayers £500; additional rate taxpayers have none. If your other income is low, the starting rate for savings can make up to £5,000 more interest tax free.

Usually, if you are self-employed, have rental income, have untaxed income over £2,500, receive more than £10,000 of dividends, or are caught by the High Income Child Benefit Charge, among other reasons. Our personal tax service explains more.