Is Statutory Maternity Pay taxed, and how much will I actually take home in 2026/27?

Full answer

SMP is taxable income and counts as earnings for National Insurance, so your employer deducts Income Tax and Class 1 NI through PAYE just as with normal wages. It is paid for up to 39 weeks: the first 6 weeks at 90% of your average weekly earnings (with no upper cap), then the next 33 weeks at the lower of £194.32 or 90% of average weekly earnings. The remaining weeks of the 52-week leave entitlement are usually unpaid. What you take home depends on how much you receive in the tax year. Your Personal Allowance is £12,570, so if SMP is your only income for the year you may pay little or no tax. At the standard rate of £194.32 a week, the standard-rate phase totals about £6,413 over 33 weeks; added to 6 weeks of higher pay, most people's annual SMP stays under or near the Personal Allowance, meaning tax can be low or refundable. Income Tax is cumulative across the year, so if you worked at a higher salary before leave you may have paid more tax earlier and could see less deducted, or a refund, while on SMP. National Insurance is charged per pay period, not cumulatively: employees pay 8% on earnings between £12,570 and £50,270 a year (about £242 a week), then 2% above. Because £194.32 is below the weekly NI threshold, the standard SMP rate alone normally attracts no employee NI. Scotland: Income Tax uses Scottish bands (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%), so tax deducted may differ slightly, but SMP rules, NI and the £194.32 figure are UK-wide and identical in Wales and Northern Ireland. Salary sacrifice arrangements such as childcare or pension can continue and affect your net figure.

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