PAYE Calculator — 2026/27
PAYE (Pay As You Earn) is the system your employer uses to deduct income tax and National Insurance from every payslip before you are paid. This calculator shows the annual PAYE deductions for 2026/27 on the standard tax code 1257L — useful for checking a payslip or forecasting a salary change.
| Gross salary | — |
|---|---|
| Personal Allowance | — |
| Income tax | — |
| National Insurance | — |
| Pension | — |
| Student loan | — |
| Overall deduction rate | — |
Income tax by band
| Band | Taxed amount | Tax |
|---|
Pension is modelled as a net pay arrangement (it reduces taxable pay, not National Insurance). Student loan thresholds 2026/27: Plan 1 £26,900 · Plan 2 £29,385 · Plan 4 £33,795 · Plan 5 £25,000 · Postgraduate £21,000.
How PAYE spreads your tax
Your Personal Allowance is divided across the year — £1,048 a month — so each payslip taxes you on that month's pay above the monthly allowance slice. Earn a bonus in one month and PAYE may deduct at a higher rate that month, then balance out over the following months. Codes ending W1 or M1 are emergency codes that treat each pay period on its own. Read more in what is PAYE and tax codes explained.
Frequently asked questions
What does tax code 1257L mean?
1257L is the standard code for 2026/27: it gives you the full £12,570 Personal Allowance (1257 × £10) and the L means the allowance is applied in the usual way. See tax codes explained.
Why did my PAYE tax change this month?
Common reasons: a bonus or overtime pushing that month's pay into a higher band, a new tax code from HMRC, starting a job mid-year, or a pension change. PAYE is cumulative, so most wobbles correct themselves by the year end.