Your payslip, decoded: tax and National Insurance
Your salary is £30,000. So why doesn't £2,500 land every month?
The simple version
The first £12,570 you earn each year is tax-free (your personal allowance). Above that you pay 20% income tax up to £50,270, then 40%. National Insurance is a separate charge — 8% on the same middle band.
Income tax£3,186
National Insurance£1,394
Pension£1,500
Take-home£23,920
Per month in your account
£1,993
Illustrative 2026/27 England rates, tax code 1257L, no student loan.
Check your tax code
Most people are 1257L. A wrong code is a common reason for over-paying — if yours looks odd, check it in the HMRC app.
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Key takeaway
Gross isn't what you get. Budget from your take-home pay, and check your tax code once a year.
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