Free Tool
UK PAYE Tax Calculator 2026/27
See the true cost of employment from both sides. Calculate employee take-home pay and total employer cost including NI, pension, and apprenticeship levy.
Employment Details
£
Quick select
%
%
£
£
Based on 2026/27 HMRC rates (frozen from 2025/26). Employer NI threshold set at £5,000. The apprenticeship levy is shown as a marginal cost per employee for employers with payrolls exceeding £3m.
Employee Receives
£27,459.88
Annual take-home pay
Effective tax rate16.5%
Marginal rate31.6%
Employer Pays
£40,287.50
Annual total employment cost
Cost above gross salary£5,287.50
Overhead %15.1%
How Your Salary Splits
Take-Home: £27,459.88 (78.5%)
Income Tax: £4,135.80 (11.8%)
Employee NI: £1,654.32 (4.7%)
Pension: £1,750.00 (5.0%)
Employee Deductions (Annual)
Gross Salary£35,000.00
Income Tax-£4,135.80
Employee National Insurance-£1,654.32
Pension (5%)-£1,750.00
Total Deductions-£7,540.12
Net Take-Home Pay£27,459.88
Employer Costs (Annual)
Gross Salary£35,000.00
Employer NI (15% above £5,000)+£4,237.50
Employer Pension (3%)+£1,050.00
Total Employment Cost£40,287.50
Effective Tax Rate
16.5%
Combined income tax + NI as % of gross
Marginal Tax Rate
31.6%
Tax on the next £1,000 earned