A payslip shows how your gross pay becomes the money that reaches your bank account. The main deductions for 2026/27 are Income Tax through PAYE, National Insurance at 8% and 2%, and where they apply, pension contributions and student loan repayments. The calculator above breaks a salary into each line so you can check your payslip is right.
Your tax code tells your employer how much Personal Allowance to apply before Income Tax is taken. The wrong code is one of the most common reasons people overpay or underpay through the year.
What does each line on my payslip mean?
Gross pay is your earnings before deductions. Income Tax and National Insurance are taken under PAYE, with the amounts set by HMRC's Income Tax rates and National Insurance thresholds. Pension and student loan come off where they apply, and what remains is your net pay.
| Payslip line (2026/27) | What it is |
|---|---|
| Gross pay | Earnings before any deductions |
| Income Tax (PAYE) | 20% / 40% / 45% above the £12,570 Personal Allowance |
| National Insurance | 8% from £12,570 to £50,270, then 2% |
| Pension | Your contribution, often before tax |
| Student loan | 9% above your plan threshold (6% postgraduate) |
| Net pay | What reaches your bank account |
How much tax and National Insurance comes off £30,000?
On a £30,000 salary in 2026/27 with the standard tax code, £3,486 comes off for Income Tax and £1,394 for National Insurance over the year, leaving about £25,120 net, or roughly £2,093 a month, before any pension or student loan. Student loan repayments would reduce this further.
Why is my take-home pay different from a colleague on the same salary?
Two people on the same salary can take home different amounts because of their tax code, pension contributions, student loan plan and any benefits in kind such as a company car. If your code looks wrong, check it against HMRC's record. Our UK salary and tax guide explains the bands, and our free Tax Health Check can review your position.
Related guides and calculators
- How student loan repayments work on your payslip
- UK salary and tax rate guide
- Take-home pay calculator
- Income tax calculator
Frequently asked questions
What deductions come off my payslip?
The main deductions are Income Tax and National Insurance, taken under PAYE, plus pension contributions and student loan repayments where they apply. Your gross pay minus these deductions is your net pay.
How is the tax on my payslip worked out?
Income Tax is worked out under PAYE using your tax code, which sets how much Personal Allowance applies, then the 20%, 40% and 45% bands. National Insurance is charged at 8% between £12,570 and £50,270 and 2% above that for 2026/27.
Why does my National Insurance change each month?
National Insurance is worked out on each pay period rather than annually for most employees, so it moves with your pay. You pay 8% on earnings between the thresholds and 2% above the upper earnings limit.
What is my tax code?
Your tax code tells your employer how much tax-free Personal Allowance to apply before Income Tax is deducted. The standard code for 2026/27 is 1257L, reflecting the £12,570 Personal Allowance. A wrong code is a common cause of over or underpaying tax.
How do I check my payslip is correct?
Compare your gross pay, Income Tax, National Insurance and net pay against this calculator for your salary, and check your tax code matches the one HMRC has on record. If the figures differ significantly, contact your employer or HMRC.