PAYE calculator
Work out the income tax and National Insurance on one payment, the way payroll does: from the tax code, the pay date and the pay and tax so far this year. Uses HMRC's published method for 2026/27.
| Item | This payment |
|---|---|
| Pay before tax | £3,000.00 |
| Income tax (PAYE) | −£390.40 |
| Employee National Insurance | −£156.16 |
| Take-home | £2,453.44 |
| Employer National Insurance (paid on top) | £387.45 |
How HMRC’s method works this out
- Tax code
- 1257L
- Pay to date (month 6)
- £18,000.00
- Tax-free pay to date
- £6,289.56
- Taxable pay to date, rounded down to the pound
- £11,710.00
- Top rate reached (England and Northern Ireland)
- 20%
- Tax due to date
- £2,342.00
- Less tax already deducted this tax year
- £1,951.60
- Earnings for National Insurance
- £3000.00
- At 8% (above £1048.00 up to £4189.00)
- £1952.00
- At 2% (above £4189.00)
- £0.00
- Employee National Insurance
- £156.16
- Employee National Insurance is for category letter A. Other letters, directors' annual earnings periods, student loans and pensions aren't calculated.
- Cumulative code: the result depends on the pay and tax to date you entered for earlier periods this tax year.
The official method, step by step
- The pay date sets the tax month or week (month 1 starts on 6 April).
- Tax-free pay to date comes from the tax code: for 1257L, £1,048.26 for each month so far.
- Tax to date is worked out on pay to date, rounded down to the pound, using the year's bands pro-rated to date.
- This payment's tax is tax to date less tax already deducted, capped at half of this payment.
- W1, M1 or X codes treat the payment on its own, ignoring earlier pay.
- Employee National Insurance is worked out on this payment alone: 8% from £1,048 to £4,189 a month, 2% above.
What this leaves out
- Student and postgraduate loans
- Pensions (enter pay after a net pay pension if you use one)
- National Insurance letters other than A, and directors
- Week 53 payments
Sources: HMRC, Specification for PAYE Tax Table Routines, version 24.0 (February 2026), Appendices A–C; HMRC, Rates and thresholds for employers 2026 to 2027; HMRC, 2026 to 2027: Employer further guide to PAYE and National Insurance contributions (CWG2).
PAYE calculator: common questions
How is PAYE calculated?
HMRC's method is cumulative: it takes your pay so far this tax year, subtracts tax-free pay from your tax code, taxes the rest at the year's rates pro-rated to date, and deducts only what hasn't already been paid.
Why does my tax change from month to month?
Because PAYE looks at the whole year so far. A bonus, a change of tax code or a month of lower pay changes the tax to date, so this month's figure moves to catch up or refund.
What is employer National Insurance?
Employers pay 15% on each employee's earnings above £417 a month (£96 a week) in 2026/27, on top of the salary. It doesn't come out of the employee's pay.
Can I make a payslip from this?
Yes. Turn this into a payslip opens the payslip generator with the pay filled in, where the same calculation can fill in PAYE and National Insurance for you.
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