What's My Take Home Pay? A Guide to Comparing Job Offers in 2026/27

What's My Take Home Pay? A Guide to Comparing Job Offers in 2026/27

When you're weighing up job offers, the headline salary is only part of the story. What really matters is what lands in your bank account each month – your take-home pay. Understanding the difference between gross salary and net pay helps you compare offers fairly and negotiate with confidence.

Gross Salary vs Take-Home Pay

Your gross salary is the amount your employer agrees to pay you before any deductions. From that, your employer deducts:

• Income Tax – calculated on your earnings above the Personal Allowance
• National Insurance (NI) – a separate tax on your earnings
• Pension contributions – if you're enrolled in a workplace pension (automatic enrolment)
• Student loan repayments – if you have an outstanding student loan

What's left is your take-home pay, also called net pay. For 2026/27, the standard Personal Allowance is £12,570 – the amount you can earn tax-free. Above that, Income Tax and NI are worked out independently using their own thresholds.

How Income Tax and National Insurance Work in 2026/27

England, Wales and Northern Ireland

Band	Taxable income	Income Tax rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571 – £50,270	20%
Higher rate	£50,271 – £125,140	40%
Additional rate	Over £125,140	45%

Employee National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% on anything above £50,270. There's no NI on the first £12,570.

Scotland

Scotland sets its own Income Tax bands and rates. For 2026/27, these are:

• Starter rate: 19% on £12,571 – £15,397
• Basic rate: 20% on £15,398 – £27,491
• Intermediate rate: 21% on £27,492 – £43,662
• Higher rate: 42% on £43,663 – £75,000
• Advanced rate: 45% on £75,001 – £125,140
• Top rate: 48% over £125,140

National Insurance rates are the same across the UK.

Example Take-Home Pay Figures

To give you a sense of what different salaries mean after deductions, here are some examples for a single person on the standard 1257L tax code with no pension or student loan:

• £35,000 gross → £28,720 take-home per year, or £2,393 per month (GovMath calculator)
• £39,039 gross (UK median full-time pay) → approximately £31,632 take-home per year, or £2,636 per month (ONS ASHE)
• £24,785 gross (National Living Wage at £12.71/hr, 37.5 hrs/week) → approximately £21,360 take-home per year, or £1,780 per month
• £50,000 gross → £39,520 take-home per year, £3,293 per month
• £60,000 gross → £45,357 take-home per year, £3,780 per month

These figures show that you keep roughly 82p of every £1 you earn at £35,000, dropping to about 76p at £60,000 due to higher rate tax.

The Role of Pensions and Student Loans

Workplace pension contributions can significantly affect your take-home pay. If your pension is via salary sacrifice, your gross pay is reduced before tax and NI are calculated, which can increase your net pay compared to a non-sacrifice arrangement. Even a 5% employee contribution on a £35,000 salary reduces your taxable income by £1,750, saving you £350 in Income Tax and £140 in NI.

Student loan repayments are deducted after tax and NI. The thresholds and rates for 2026/27 are:

• Plan 1: 9% above £26,900
• Plan 2: 9% above £29,385
• Plan 4 (Scotland): 9% above £33,795
• Plan 5: 9% above £25,000
• Postgraduate Loan: 6% above £21,000

If you have both an undergraduate and postgraduate loan, only one is deducted at a time (the higher repayment).

Using a Take-Home Calculator to Compare Offers

The best way to compare job offers is to use a reliable take-home calculator that lets you input salary, region, pension percentage, and student loan plan. This gives you a clear monthly net figure for each offer. You can also adjust pension contributions to see how they affect your take-home – useful if one employer offers a more generous pension scheme.

For more tips on negotiating, browse our salary articles covering topics like understanding your tax code, the value of benefits, and how to ask for a higher salary.

Caveats to Keep in Mind

All calculator estimates assume a standard tax code (1257L or S1257L in Scotland), no benefits in kind, and no other income. Your actual take-home may differ if:

• Your tax code is different (e.g., due to a company car or underpaid tax from a previous year)
• You receive bonuses or overtime that push you into a higher tax band in a single pay period
• You live in Scotland and pay different Income Tax rates
• You have multiple jobs or self-employment income

Always check your payslip and refer to official GOV.UK guidance for your personal circumstances. These figures are for planning, not a substitute for professional advice.

Summary

When asking "what's my take home pay?", remember that gross salary is just the starting point. Income Tax, National Insurance, pension, and student loans all take a slice. By using a calculator and understanding the bands, you can compare job offers on a like-for-like basis and negotiate with confidence. Whether you're looking at a £25,000 entry-level role or a £60,000 senior position, knowing your net pay helps you make informed decisions about your career and finances.