Calculate Your Tax
Enter your annual income to calculate how much income tax and National Insurance you'll pay. This calculator shows your tax breakdown and take-home pay for 2025/26.
Want the full context? Read our UK Tax Guide (2025/26) to understand tax bands, NI and how take-home pay is worked out.
How is Tax Calculated in the UK?
UK income tax is calculated on a progressive basis, meaning different portions of your income are taxed at different rates. Here's how it works:
Income Tax Bands for 2025/26
For England, Wales, and Northern Ireland:
- Personal Allowance: £12,570 (0% tax) - You pay no tax on income up to this amount
- Basic Rate: £12,571 to £50,270 (20% tax) - First £37,700 of taxable income
- Higher Rate: £50,271 to £125,140 (40% tax)
- Additional Rate: Above £125,140 (45% tax)
For Scotland (different rates apply):
- Personal Allowance: £12,570 (0% tax)
- Starter Rate: £12,571 to £14,732 (19% tax)
- Basic Rate: £14,733 to £25,688 (20% tax)
- Intermediate Rate: £25,689 to £43,662 (21% tax)
- Higher Rate: £43,663 to £125,140 (42% tax)
- Top Rate: Above £125,140 (47% tax)
National Insurance Contributions
National Insurance (NI) is calculated separately from income tax:
- Primary Threshold: £12,570 per year
- Basic Rate (12%): Earnings between £12,570 and £50,270
- Reduced Rate (2%): Earnings above £50,270
For a detailed breakdown including pension contributions and student loans, use our salary calculator.
Frequently Asked Questions
What is the personal allowance?
The personal allowance is the amount of income you can earn each year before you start paying income tax. For 2025/26, this is £12,570 for most people. If you earn more than £100,000, your personal allowance is reduced by £1 for every £2 you earn above this threshold.
How does tax work for Scottish taxpayers?
Scottish taxpayers pay income tax using different rates and bands than the rest of the UK. While the personal allowance is the same (£12,570), Scotland has six tax bands instead of four, with rates ranging from 19% to 47%. Our calculator automatically adjusts calculations based on your selected region.
What's the difference between income tax and National Insurance?
Income Tax and National Insurance are separate deductions:
- Income Tax: Funds general government spending (NHS, education, defence, etc.)
- National Insurance: Funds state benefits like the State Pension, Jobseeker's Allowance, and statutory sick pay
Both are deducted from your pay, but they're calculated independently using different thresholds and rates.
How accurate is this tax calculator?
This calculator uses the latest HMRC tax rates and thresholds for 2025/26. However, your actual tax liability may vary based on:
- Your tax code (which reflects personal allowances, benefits, and deductions)
- Additional income sources
- Tax reliefs and allowances you're entitled to
- Pension contributions and salary sacrifice arrangements
For comprehensive calculations including all deductions, use our take-home pay calculator or consult with a qualified tax advisor.
Can I reduce my tax bill?
There are several legitimate ways to reduce your tax liability:
- Salary sacrifice into your pension (saves income tax and NI)
- Make charitable donations (claim Gift Aid)
- Claim tax relief on work-related expenses
- Utilize tax-free allowances (ISA, dividend allowance, etc.)
To see how salary sacrifice affects your tax, use our pension calculator. Always consult with a financial advisor for personalized advice.