How we calculate

Updated 30 September 2026

All figures are for the 2026/27 tax year (6 April 2026 to 5 April 2027). The same rules power every calculator and every table on the site.

Take-home pay

  • Personal allowance £12,570 (tax code 1257L), reduced by £1 for every £2 of adjusted net income over £100,000.
  • England, Wales and Northern Ireland: 20% on the first £37,700 of taxable income, 40% up to £125,140, 45% above.
  • Scotland: starter rate 19%, basic rate 20%, intermediate rate 21%, higher rate 42%, advanced rate 45%, top rate 48%.
  • Employee National Insurance: 8% between £12,570 and £50,270, 2% above.
  • Student loans: Plan 1 9% over £26,900; Plan 2 9% over £29,385; Plan 4 (Scotland) 9% over £33,795; Plan 5 9% over £25,000; postgraduate 6% over £21,000.
  • Pensions: salary sacrifice comes off before tax, National Insurance and student loan; net pay before tax only; relief at source costs you 80% of the contribution.
  • We work tax out over the whole year. Payroll works it out each pay period, so a single payslip can differ by a few pounds.
  • Monthly figures divide the year by 12, weekly by 52, daily by 260 working days.

Stamp duty

England and Northern Ireland rates from 1 April 2025: 0% up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above. First-time buyers pay 0% up to £300,000 and 5% up to £500,000, with no relief above £500,000. Additional homes pay 5% more on every band and non-UK residents 2% more.

LBTT in Scotland and LTT in Wales

Scotland (LBTT, 2026/27): 0% up to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above. First-time buyers get a £175,000 nil rate band. Second homes pay the 8% Additional Dwelling Supplement on the whole price from £40,000.

Wales (LTT): main rates of 0% up to £225,000, 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above. Higher rates for additional homes since 11 December 2024: 5% up to £180,000, 8.5% to £250,000, 10% to £400,000, 12.5% to £750,000, 15% to £1.5 million and 17% above. Wales has no first-time buyer relief.

Self-employed

Income tax on profit uses the same bands as employees. Class 4 National Insurance is 6% on profits between £12,570 and £50,270 and 2% above. Class 2 is no longer charged; below the £7,105 small profits threshold it can be paid voluntarily at £3.65 a week. Day rate pages assume 220 working days a year and sole trader tax, before business expenses.

Mortgages and borrowing

Repayment mortgages use the standard annuity formula with monthly compounding. Borrowing pages use income multiples of 4 to 5.5 times, which is a common range across UK lenders. Real offers depend on each lender's affordability checks, your outgoings and your credit history.

Minimum wage

From 1 April 2026: £12.71 an hour for age 21 and over, £10.85 for 18 to 20, £8.00 for under 18s and apprentices. Yearly figures from hourly rates assume 37.5 hours a week for 52 weeks.

Sources

Popular calculators

Most people come here for the take-home pay calculator, the stamp duty calculator and the mortgage calculator. The full list is on the all calculators page.