Payroll Calculator UK 2026

Use GlobalCalqulate’s free UK Payroll Calculator (2026) to calculate PAYE income tax and National Insurance (NI) deductions, estimate net pay, and view employer payroll cost. Add workplace pension contributions (auto-enrolment), salary sacrifice, and Student Loan deductions to generate a realistic payroll breakdown per year, month, week, or payslip period. Ideal for employees, HR teams, and small businesses calculating payroll costs in England, Scotland, Wales and Northern Ireland.

Last revised 3 September 2026

By Team GlobalCalqulate · About our editorial standards

Income Details

Gross Salary

Pay Frequency

Annual Bonus

Tax Information

Tax Region

Pension Contributions

Employee Pension (%)

Employer Pension (%)

Pension Method

Salary Sacrifice Amount

Student Loan & Deductions

Student Loan Plan

Benefits

Taxable Benefits

Financial Disclaimer: This result is an educational estimate produced by applying published rates and thresholds to the figures you entered. It is not a tax determination: your actual liability depends on circumstances this calculator does not collect. Confirm your position with the relevant tax authority or a qualified accountant before acting on it. Full disclaimer.

Sources & methodology

Formula:: Salary sacrifice and pension
Reference:: HM Revenue & Customs (GOV.UK)
Rates for:: 2026/27
Figures verified:: August 2026 — checked against the primary source above
Scheduled re-verification:: April 2027

Calculation type: Rule-based calculation. Uses 2026/27 rates and thresholds. Figures are taken from HM Revenue & Customs (GOV.UK) and HM Revenue & Customs and Scottish Government and mygov.scot (Scottish Government) and GOV.UK — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked 7 August 2026

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Salary sacrifice and pension

adjusted pay = gross − salary sacrifice;  employee pension = adjusted pay × contribution %

Salary sacrifice is removed from gross before anything else is calculated. The pension method then decides whether the employee contribution also reduces taxable income: net pay reduces it, relief at source does not (the provider claims basic-rate relief instead), and salary sacrifice has already been removed from pay by this point.

PAYE income tax

tax = Σ (income falling in each band × that band's rate)

The Personal Allowance is deducted first, tapering above £100,000, then the remainder is charged band by band using the schedule for the selected region — the rest-of-UK bands, or Scotland's own six.

Employee and employer National Insurance

employee NI = banded on adjusted pay above the primary threshold;  employer NI = (adjusted pay − secondary threshold) × 15%

Both are charged on pay after salary sacrifice but before any pension deduction — only salary sacrifice reduces NI-able earnings, not a net pay or relief-at-source contribution.

Total employer cost

cost = adjusted pay + employer NI + employer pension

What the employer actually spends to employ you, on top of the pay you see on the payslip.

Step-by-step calculation

1. Annualise the pay figure
Whatever frequency you enter is converted to an annual amount.
2. Deduct salary sacrifice
The remainder is the pay used for tax, NI and the employer pension.
3. Work out the employee pension contribution
And, if the method is net pay, deduct it from taxable income.
4. Apply the Personal Allowance and tax bands
Giving PAYE income tax due for the selected region.
5. Add employee and employer National Insurance
Each on its own threshold.
6. Add the employer pension contribution
To reach total employer cost.
7. Subtract deductions from adjusted pay
The remainder is net pay, converted back to your chosen frequency.

Limitations

National Insurance is legally assessed per pay period, not across the year. This calculator annualises it, which is exact for steady monthly pay but an approximation for bonuses or irregular earnings.
The Employment Allowance is not applied to employer NI. It is a payroll-wide annual allowance rather than a per-employee one, so subtracting it from one employee's cost would misstate it for any employer with staff.
The standard Personal Allowance is assumed. A non-standard or K tax code, Marriage Allowance or an allowance restriction carried over from a previous year will change the result.
Only PAYE employment income is modelled. Self-employment profits, dividends, savings interest, rental income and capital gains follow different rules and are not included.
Statutory Sick Pay, Statutory Maternity/Paternity Pay and other statutory payments are not modelled separately.
This is an estimate of payroll deductions, not a payslip or HMRC determination. Your actual figures are set by your employer's payroll software and confirmed by HMRC.

This page is educational. It applies published rates and thresholds to the figures you enter and shows the arithmetic behind the result. It is an estimate, not a tax determination: your actual liability depends on circumstances this calculator does not collect, and only the relevant tax authority — or an accountant who can see your full position — can confirm what you owe.

Sources & references

Rates and thresholds for employers 2026 to 2027 — HM Revenue & Customs (GOV.UK)
Income Tax rates and Personal Allowances — HM Revenue & Customs (GOV.UK)
Income Tax rates and allowances for current and past years — HM Revenue & Customs
Scottish Income Tax rates and bands: 2026 to 2027 — Scottish Government
Income Tax in Scotland: current rates — mygov.scot (Scottish Government)
Self-employed National Insurance rates — HM Revenue & Customs
Repaying your student loan: what you pay — GOV.UK

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

Does the calculator use current UK tax rates?

Tap to view the answer

The calculator is designed around commonly available UK payroll guidelines. Rates and thresholds may change over time. The estimates are meant for planning, not exact payroll processing.

Are pension contributions included?

Tap to view the answer

Some versions allow you to include pension contributions. Employer-specific pension rules may not be fully reflected. Actual deductions may vary.

What happens if I change my salary or hourly rate?

Tap to view the answer

Updating your pay amount will change the estimated deductions and net pay. You can adjust inputs to explore scenarios. The calculator updates results accordingly.

How does pay frequency change the deductions on a payslip?

Tap to view the answer

Income tax is cumulative across the tax year, so it evens out regardless of frequency. National Insurance is not — it is worked out on each pay period separately against that period's thresholds. Changing frequency therefore leaves the annual tax broadly unchanged but can shift the National Insurance total, which is why the per-period figures here are calculated for the frequency you choose rather than divided from an annual total.

What if I receive a bonus or overtime?

Tap to view the answer

You can include these amounts in your gross pay to see indicative effects. Bonuses and overtime may be taxed differently in practice. The calculator provides simplified estimates.

Need more help? Contact support or email globalcalqulate@gmail.com

We typically reply within 24–48 hours.

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How to Use This Calculator

Enter Gross Salary and Frequency

Add your gross pay and whether it's an annual, monthly or weekly amount, plus your tax region.

Set Employee and Employer Pension

Enter the employee and employer pension percentages and choose the method — relief at source, net pay, or salary sacrifice — since this changes what's deducted before tax.

Add Student Loan and Benefits

Select a student loan plan if applicable, and add any taxable benefits or salary sacrifice amount.

Review Net Pay and Employer Cost

See PAYE tax, employee and employer NI, both pension contributions, student loan repayment, net pay, and total employer cost side by side.

Understanding Your Results

PAYE income tax
Charged band by band on taxable pay after the Personal Allowance, using the schedule for your selected region.
Employee National Insurance
8% on pay between £12,570 and £50,270, then 2% above — deducted from pay after salary sacrifice.
Employer National Insurance
15% on pay above £5,000 (2026/27), paid by the employer on top of salary — not shown on your payslip.
Total employer cost
Adjusted pay plus employer NI plus the employer pension contribution — what it actually costs to employ you.

Key Tips

✓
Salary sacrifice can reduce tax and NI.
✓
Increasing pension contributions can improve long-term savings.
✓
Check your tax code on your payslip — a wrong code is the most common cause of over- or underpaying PAYE, and this estimate assumes the standard Personal Allowance.
✓
Use payroll and take-home pay calculators together.

Understanding UK Payroll

What is PAYE?

Pay As You Earn is the system HMRC requires employers to use: income tax and National Insurance are worked out and deducted from your pay before you receive it, then reported and paid to HMRC by your employer — you don't handle it yourself unless you also file a Self Assessment return.

Employee NI vs employer NI

Employee NI (8% between £12,570 and £50,270, 2% above) comes off your pay and appears on your payslip. Employer NI (15% above £5,000 for 2026/27) is a separate cost the employer pays on top of your salary — it never appears as a deduction from you, which is why total employer cost is always higher than gross salary.

Why pension method changes the numbers

Relief at source, net pay, and salary sacrifice all reduce your take-home pay by roughly the contribution amount, but they don't produce the same tax and NI bill. Net pay reduces taxable income immediately. Relief at source leaves taxable income unchanged and adds basic-rate relief inside the pension instead. Salary sacrifice reduces contractual pay itself, so it's the only method that also lowers National Insurance for both employee and employer.

Why the Employment Allowance isn't in this calculator

Many employer NI calculators quietly subtract the £10,500 Employment Allowance from a single employee's cost, which overstates the saving — the allowance applies once per employer across their whole payroll, not per employee, and many one-director companies can't claim it at all. This calculator shows employer NI before that allowance so the per-employee figure is accurate; apply the allowance yourself at the payroll level if your business is eligible.

Formula & methodology

Formula used

Salary sacrifice and pension

adjusted pay = gross − salary sacrifice;  employee pension = adjusted pay × contribution %

PAYE income tax

tax = Σ (income falling in each band × that band's rate)

Employee and employer National Insurance

employee NI = banded on adjusted pay above the primary threshold;  employer NI = (adjusted pay − secondary threshold) × 15%

Both are charged on pay after salary sacrifice but before any pension deduction — only salary sacrifice reduces NI-able earnings, not a net pay or relief-at-source contribution.

Total employer cost

cost = adjusted pay + employer NI + employer pension

What the employer actually spends to employ you, on top of the pay you see on the payslip.

Step-by-step calculation

1. Annualise the pay figure
Whatever frequency you enter is converted to an annual amount.
2. Deduct salary sacrifice
The remainder is the pay used for tax, NI and the employer pension.
3. Work out the employee pension contribution
And, if the method is net pay, deduct it from taxable income.
4. Apply the Personal Allowance and tax bands
Giving PAYE income tax due for the selected region.
5. Add employee and employer National Insurance
Each on its own threshold.
6. Add the employer pension contribution
To reach total employer cost.
7. Subtract deductions from adjusted pay
The remainder is net pay, converted back to your chosen frequency.

Limitations

National Insurance is legally assessed per pay period, not across the year. This calculator annualises it, which is exact for steady monthly pay but an approximation for bonuses or irregular earnings.
The Employment Allowance is not applied to employer NI. It is a payroll-wide annual allowance rather than a per-employee one, so subtracting it from one employee's cost would misstate it for any employer with staff.
The standard Personal Allowance is assumed. A non-standard or K tax code, Marriage Allowance or an allowance restriction carried over from a previous year will change the result.
Only PAYE employment income is modelled. Self-employment profits, dividends, savings interest, rental income and capital gains follow different rules and are not included.
Statutory Sick Pay, Statutory Maternity/Paternity Pay and other statutory payments are not modelled separately.
This is an estimate of payroll deductions, not a payslip or HMRC determination. Your actual figures are set by your employer's payroll software and confirmed by HMRC.

Calculator inputs

Income Details

Tax Information

Pension Contributions

Student Loan & Deductions

Benefits

Your results

Sources & methodology

Formula & methodology

Formula used

Salary sacrifice and pension

PAYE income tax

Employee and employer National Insurance

Total employer cost

Step-by-step calculation

Limitations

Sources & references

Does the calculator use current UK tax rates?

Are pension contributions included?

What happens if I change my salary or hourly rate?

How does pay frequency change the deductions on a payslip?

What if I receive a bonus or overtime?

Related calculators

More United Kingdom calculators

Calculator inputs

Income Details

Tax Information

Pension Contributions

Student Loan & Deductions

Benefits

Your results

Sources & methodology

How to Use This Calculator

Example: £35,000 Salary, 5% Employee / 3% Employer Pension

Understanding Your Results

Key Tips

Understanding UK Payroll

What is PAYE?

Employee NI vs employer NI

Why pension method changes the numbers

Why the Employment Allowance isn't in this calculator

Formula & methodology

Formula used

Salary sacrifice and pension

PAYE income tax

Employee and employer National Insurance

Total employer cost

Step-by-step calculation

Limitations

Sources & references

How to Use This Calculator

Example: £35,000 Salary, 5% Employee / 3% Employer Pension

Understanding Your Results

Key Tips

Understanding UK Payroll

What is PAYE?

Employee NI vs employer NI

Why pension method changes the numbers

Why the Employment Allowance isn't in this calculator