See exactly how pension contributions, tax codes, and benefits affect your take-home pay.
Comprehensive UK tax analysis for the upcoming 2026/27 financial year.
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ℹ️ Most common code. Full personal allowance of £12,570. No adjustments.
ℹ️ Most employees under State Pension age. Standard NI rates apply: 8% on earnings between £12,570–£50,270, 2% above.
ℹ️ No student loan deductions will be applied.
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.
Plain-English guides on salary sacrifice, pension tax relief, and take-home pay.
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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.
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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.