2026/27 Statutory PAYE Benchmarks
Personal Allowance is £12,570. Basic rate tax is 20% up to £50,270 gross; Higher rate is 40% from £50,271 to £125,140; Additional rate is 45% above £125,140. Employee National Insurance is 8% between £12,570 and £50,270, and 2% thereafter.
Paycheck & Net Salary Evaluator
Calculates PAYE Income Tax, National Insurance, pension deductions, and net pay
Estimated Take-Home Pay Result
Net Monthly Pay
£3,400.62
Per MonthNet Annual Pay
£40,807.40
Per YearEffective Tax + NIC Rate
20.80%
Total Deductions| Payslip Item | Annual Amount | Monthly Amount |
|---|---|---|
| Gross Salary | £55,000 | £4,583.33 |
| Pension Contribution (5%) | -£2,750 | -£229.17 |
| PAYE Income Tax | -£8,332.00 | -£694.33 |
| Employee National Insurance (Class 1) | -£3,110.60 | -£259.22 |
| NET TAKE-HOME PAY | £40,807.40 | £3,400.62 |
2026/27 Income Tax & National Insurance Bands
| Tax / NIC Band | Income Threshold (Gross) | Statutory Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% (Tax-Free) |
| Basic Rate Income Tax | £12,571 to £50,270 | 20% |
| Higher Rate Income Tax | £50,271 to £125,140 | 40% |
| Additional Rate Income Tax | Over £125,140 | 45% |
| Employee NIC Main Rate | £12,570 to £50,270 | 8% |
| Employee NIC Upper Rate | Over £50,270 | 2% |
Frequently Asked Questions (6 Detailed FAQs)
The standard Personal Allowance for 2026/27 is £12,570 per year (£242/week or £1,048/month). It reduces by £1 for every £2 of income above £100,000, reaching zero at £125,140.
For individuals with the standard Personal Allowance: Basic Rate (20%) on taxable income up to £37,700 (£12,571 to £50,270 gross), Higher Rate (40%) from £37,701 to £112,570 taxable (£50,271 to £125,140 gross), and Additional Rate (45%) above £125,140 gross.
No. Scotland has devospecified Income Tax bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%). Employee National Insurance remains standard UK-wide.
For a Class 1 category A employee, National Insurance is 8% on earnings between £12,570 (£242/wk) and £50,270 (£967/wk), and 2% on earnings above £50,270.
1257L is the standard tax code for individuals with one job or pension, giving the full £12,570 tax-free Personal Allowance.
Under a Net Pay arrangement, pension deductions reduce Income Taxable pay, but National Insurance is charged on gross pay. Under Salary Sacrifice, pension deductions reduce both Income Tax and National Insuranceable pay.
Official HMRC PAYE Sources
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2026/27 PAYE Benchmarks
Personal Allowance£12,570
Basic Rate Limit£50,270
Higher Rate Limit£125,140
Employee NIC Main8%
Employee NIC Upper2%