Calculation basis
2026/27 tax rates used by Netly Pay
These are the core rates and thresholds used by the current calculator release. Values are checked against primary government sources; individual PAYE can still differ because of tax codes and pay-period rules.
Reviewed 5 September 2026 · Tax year 2026/27
Personal Allowance
| Standard Personal Allowance | £12,570 |
|---|---|
| Taper begins | Adjusted net income above £100,000 |
| Allowance reaches zero | £125,140 |
The allowance reduces by £1 for every £2 of adjusted net income above £100,000.
England, Wales and Northern Ireland Income Tax
| Taxable income after allowances | Rate |
|---|---|
| Up to £37,700 | 20% |
| £37,701–£125,140 | 40% |
| Over £125,140 | 45% |
Scottish Income Tax
| Taxable-income band | Rate |
|---|---|
| Up to £3,967 | 19% |
| £3,968–£16,956 | 20% |
| £16,957–£31,092 | 21% |
| £31,093–£62,430 | 42% |
| £62,431–£125,140 | 45% |
| Over £125,140 | 48% |
These are taxable-income bands. Scottish Government pages also show equivalent gross-income ranges for somebody receiving the full £12,570 Personal Allowance.
Employee National Insurance
| Monthly pay | Standard employee rate |
|---|---|
| Up to £1,048 | 0% |
| £1,048–£4,189 | 8% |
| Above £4,189 | 2% |
Student and postgraduate loans
| Plan | Annual threshold | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Primary sources
Important limitations
Netly Pay models employment income and the deductions listed above. It does not currently model every tax code, taxable benefit, dividend or savings rule, High Income Child Benefit Charge, Marriage Allowance, multiple employments or all pension contribution methods. Read the full methodology.