Calculating Income Tax and National Insurance on Your Pay: Worked Examples (2026/27)

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About Course

Knowing how to work out Income Tax and National Insurance helps you check your payslip, compare job offers and understand what a pay rise is really worth. This course uses the 2026/27 rates for England, Wales and Northern Ireland to walk through step-by-step calculations, including marginal rates and the £100,000 Personal Allowance taper.

Tutwoo is an independent learning provider. This course gives general information based on published official guidance for the 2026/27 tax year (6 April 2026 to 5 April 2027). It is not personal financial, tax or legal advice. For help with your own situation, contact HMRC, MoneyHelper, Citizens Advice or a regulated adviser.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.

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What Will You Learn?

  • Calculate annual Income Tax using the 2026/27 bands
  • Calculate employee Class 1 National Insurance at 8% and 2%
  • Work out take-home pay and the true value of a pay rise
  • Understand marginal rates, including the 60% effective rate between £100,000 and £125,140

Course Content

Course Lessons

  • The 2026/27 rates and the method
  • Higher earners and marginal rates
  • The £100,000 taper and checking your payslip

Sources & Further Reading
The official guidance this course is based on.

Final Assessment

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