Understanding Your Tax Calculation
Calculating your tax liability is essential for financial planning. Our my tax calculation tool helps you understand exactly how much tax you'll pay, including Income Tax, National Insurance, and other deductions.
Key Takeaways:
- How to calculate your tax liability
- Understanding tax bands and rates
- National Insurance contributions
- Tax allowances and reliefs
- Latest tax rates for 2025/26
Tax Calculation Tool
Understanding Your Tax Breakdown
Your tax calculation includes several components. Here's how they're calculated:
Income Tax
Income Tax is calculated based on your tax bands:
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance
National Insurance contributions are calculated as follows:
- 12% on earnings between £12,570 and £50,270
- 2% on earnings above £50,270
Pension Contributions
Auto-enrolment pension contributions:
- Employee contribution: 5% of qualifying earnings
- Employer contribution: 3% of qualifying earnings
- Tax relief: 1% of qualifying earnings
Example Tax Calculations
Here are some examples of how different incomes affect your tax calculation:
Example 1: £30,000 Annual Income
Gross Income: £30,000
Income Tax: £3,486
National Insurance: £2,091
Pension (5%): £1,500
Total Tax: £5,577
Net Income: £24,423
Example 2: £50,000 Annual Income
Gross Income: £50,000
Income Tax: £7,486
National Insurance: £4,091
Pension (5%): £2,500
Total Tax: £11,577
Net Income: £38,423
Frequently Asked Questions
How do I calculate my tax?
To calculate your tax, you need to consider your income, tax code, and any allowances. Our my tax calculation tool helps you work out your Income Tax, National Insurance contributions, and other deductions based on the latest tax rates for 2025/26.
What is included in my tax calculation?
Your tax calculation includes Income Tax, National Insurance contributions, pension deductions, and any other applicable taxes or deductions. The calculation takes into account your tax code, personal allowance, and the relevant tax bands for the current tax year.
How do I check my tax calculation?
You can check your tax calculation using our online tool. Simply enter your income, tax code, and other relevant details, and our calculator will show you a detailed breakdown of your tax liability, including Income Tax, National Insurance, and other deductions.
Conclusion and Next Steps
Understanding your tax calculation is essential for financial planning. Use our my tax calculation tool to:
- Calculate your tax liability
- Understand your tax deductions
- Plan your monthly budget
- Make informed financial decisions
Ready to Calculate Your Tax?
Use our comprehensive tax calculator to understand your tax liability: