Take-Home Pay
Before vs After Extra Sacrifice
Tax & NI Breakdown
Pension Contributions
Savings from Extra Sacrifice & AVC
Real Cost of Extra Contributions
📈 Pension Pot Projection
Based on current total contributions of £4,920/yr. For illustration only.
🏠 Mortgage Affordability Impact
Some lenders use post-sacrifice salary for affordability. Check with your lender. Figures are estimates only.
ISA Allowance Tracker 2026/27
UK Salary, Tax and Take-Home Pay Guides
💡 What is salary sacrifice?
Salary sacrifice is an agreement between you and your employer to reduce your gross salary in exchange for a non-cash benefit — most commonly pension contributions. Because your gross pay is lower, you pay less income tax and National Insurance. For a basic-rate taxpayer, every £100 sacrificed into a pension costs just £72 in take-home pay. Higher-rate taxpayers save even more.
✅ What this calculator covers
- ✓2026/27 and 2025/26 PAYE income tax
- ✓Employee and employer National Insurance
- ✓Salary sacrifice pension contributions
- ✓Additional Voluntary Contributions (AVC)
- ✓Scottish and Welsh income tax rates
- ✓Student loan repayments (Plans 1, 2, 4, 5 & PG)
- ✓Child Benefit and High Income Charge
- ✓EV and cycle-to-work salary sacrifice
- ✓Bonus and benefits-in-kind (private medical)
- ✓Marriage Allowance and custom tax codes
🚀 How to use the calculator
- 1Enter your gross annual salary and your employer's pension contribution percentage.
- 2Set your current employee pension contribution and any additional salary sacrifice amount.
- 3Add your tax code (e.g. 1257L), NI category, and select your tax year.
- 4Toggle on Child Benefit, student loan, or other options that apply to you.
- 5Your take-home pay, tax, NI, and savings update instantly in the Results panel.
📚 Latest UK Tax Guides
Plain-English guides on salary sacrifice, pension tax relief, and take-home pay.
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HMRC Wants Tax Money Back in 30 Days: Should You Repay or Challenge It?
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178,000 Taxpayers Have Missed £800 HMRC Refunds — How to Check If You're One of Them
Over 178,000 UK taxpayers have missed HMRC tax refunds worth around £800 each — simply by not cashing a cheque. Here's how to check if you're owed money and how to claim it.
Personal Allowance Frozen at £12,570: Why More UK Workers Could Pay More Tax
The UK Personal Allowance is frozen again at £12,570 for 2026/27. That does not sound like a tax rise, but many PAYE workers may still feel the impact.
Salary Sacrifice Calculator UK 2026/27: How Much Tax Can You Save?
Find out how much tax you can save with salary sacrifice in 2026/27, how the calculator works, and why key thresholds like £50,270, £60,000, and £100,000 matter.
❓ Frequently asked questions
Does salary sacrifice reduce my National Insurance?
Yes. Unlike regular pension contributions, salary sacrifice reduces your gross pay before NI is calculated. This means you save both income tax and employee NI (8% for most earners). Your employer also saves 13.8% employer NI on the sacrificed amount.
What is the £100,000 salary trap?
When your Adjusted Net Income exceeds £100,000, your Personal Allowance (£12,570) is tapered away at £1 for every £2 earned above £100,000. This creates an effective 60% marginal tax rate between £100,000 and £125,140. Salary sacrifice is the most effective way to bring your income below £100,000 and reclaim your full allowance.
Can salary sacrifice affect my mortgage?
Potentially. Some lenders assess affordability based on your gross salary after sacrifice, which will be lower. Check with your mortgage adviser before making large changes. The calculator shows your pre- and post-sacrifice gross salary to help with this.
Is this calculator accurate for Scottish taxpayers?
Yes. Enter a tax code beginning with S (e.g. S1257L) and the calculator applies the six Scottish income tax bands for 2026/27, including the Starter, Basic, Intermediate, Higher, Advanced, and Top rates.
TaxCal UK is an independent tool for informational purposes only. Results are estimates and do not constitute financial or tax advice. Always verify with HMRC or a qualified adviser.