Finance & Business
UK Income Tax Calculator
Calculate your income tax for. See your tax broken down by band with effective and marginal rates. Covers England, Wales, Northern Ireland and Scotland.
Enter your income details above and click Calculate to see your income tax breakdown.
Related to UK Income Tax Calculator
UK income tax is not a flat charge on everything you earn. It operates through a tiered band system in which different portions of your income are taxed at progressively higher rates. Only the slice of income that falls within each band pays the rate for that band — so earning more never causes all of your income to be taxed at the higher rate, only the additional amount that crosses into it.
The foundation of the system is the Personal Allowance — the amount of income you can receive each tax year entirely free of income tax. For 2025/26 this stands at £12,570. Income up to that threshold is taxed at 0%. The Personal Allowance is not a deduction applied after tax is calculated; it is the point at which taxable income begins. This means a person earning £20,000 only pays the 20% basic rate on £7,430, not on the full £20,000.
If your gross income exceeds £100,000, the Personal Allowance begins to taper away. For every £2 earned above £100,000, the allowance reduces by £1. At £125,140 the allowance reaches zero entirely. This taper creates one of the steepest marginal effective tax rates in the UK system, and it is important to understand when planning your finances.
Pension contributions made into a registered pension scheme are deducted from your gross income before tax bands are applied. The calculator subtracts your pension contribution from your gross income first, then runs the band calculation on the reduced figure. This accurately reflects how salary sacrifice and personal pension contributions reduce your tax liability.
Scotland vs England / Wales / N. Ireland
Scotland operates its own distinct income tax band structure under the powers devolved to the Scottish Parliament. While the Personal Allowance remains the same (£12,570), Scotland uses six bands rather than three. The 2025/26 Scottish bands are: a Starter rate of 19% (£12,571–£15,397), a Basic rate of 20% (£15,398–£27,491), an Intermediate rate of 21% (£27,492–£43,662), a Higher rate of 42% (£43,663–£75,000), an Advanced rate of 45% (£75,001–£125,140), and a Top rate of 48% above £125,140. The higher rates in the upper Scottish bands mean that higher earners in Scotland pay more income tax than equivalent earners in England, Wales, or Northern Ireland. The calculator detects your selected region and applies the correct set of bands automatically.
This calculator computes income tax only. It does not include National Insurance contributions, which are a separate deduction. For a full picture of your take-home pay, use the Take Home Pay Calculator or the National Insurance Calculator alongside this tool.
The results panel presents several different figures. Understanding the distinction between them — particularly the difference between the effective rate and the marginal rate — is essential for accurate financial planning.
The effective tax rate is calculated by dividing your total income tax liability by your gross income and multiplying by 100. It represents the average rate you pay across all of your income. For example, if you earn £50,000 and pay £7,486 in income tax, your effective rate is approximately 15.0%. This is the most useful single figure for comparing the overall tax burden at different income levels, or for budgeting purposes.
The marginal rate is the rate you pay on the very last pound of income you earn — in other words, the rate that applies to any additional earnings. If you earn £52,000, your marginal rate is 40% because the additional income falls in the higher band. Knowing your marginal rate helps you understand the true cost of earning more, and is particularly important when evaluating a pay rise, bonus, or additional income stream. Because of the tiered band structure, the effective rate is always lower than the marginal rate (except at zero income), which is why many people overestimate their tax burden.
The band breakdown table shows precisely how much of your income falls into each tax band and the resulting tax charge for each slice. This is useful if you are close to a threshold and want to understand exactly how much a small change in income would cost in additional tax.
Pension contributions are shown separately because they represent the most tax-efficient way to reduce your income tax bill available to most UK taxpayers. A £1,000 pension contribution by a basic rate taxpayer saves £200 in income tax. For a higher rate taxpayer the saving is £400 on the same amount. The pension itself grows free of income tax and capital gains tax until it is drawn — making it the most powerful tool for managing your tax position before year end.
The 60% Trap: Earning Between £100,000 and £125,140
If your income is between £100,000 and £125,140, you face an effective marginal rate of 60% — even though the headline higher rate is 40%. This happens because the Personal Allowance tapers at a rate of £1 for every £2 earned above £100,000. Each additional £2 of income is taxed at 40% (80p of tax) and removes £1 from your Personal Allowance, causing a further 40% charge on that £1 (40p). Combined that is £1.20 of tax on £2 of income — exactly 60%. The most effective way to escape this trap is to make pension contributions that bring your adjusted net income back below £100,000, restoring the full Personal Allowance and reducing the effective marginal rate to 40%.
The income after tax figure shown is your gross income minus total income tax only. To arrive at your net take-home pay as an employee you would also need to deduct National Insurance contributions, student loan repayments if applicable, and any other deductions made via PAYE. Use the Take Home Pay Calculator for a complete picture.
1. What is the personal allowance and how does it work?
The Personal Allowance is the amount of income you can earn each tax year before you start paying income tax. For 2025/26 it is £12,570. It applies automatically — you do not need to claim it. The allowance means that the first £12,570 of your income is effectively taxed at 0%. Income above this threshold is what enters the tax bands. The Personal Allowance is the same regardless of whether you are employed, self-employed, or receiving rental income, and it applies equally across England, Wales, Northern Ireland, and Scotland. One important exception is that the allowance is gradually withdrawn once your income exceeds £100,000, reducing to zero at £125,140.
2. Why is the effective tax rate lower than the basic rate?
The effective tax rate is lower than the basic rate (20%) because not all of your income is taxed at 20%. The first £12,570 is covered by the Personal Allowance and taxed at 0%. Only income above that threshold starts attracting the 20% basic rate charge. Because a substantial portion of most people's earnings is sheltered by the allowance, the average rate across all income is dragged down significantly. For example, someone earning £30,000 pays 20% on £17,430 (the amount above £12,570), giving a total tax bill of £3,486 — an effective rate of approximately 11.6%, well below 20%. This distinction between effective and marginal rates is one of the most commonly misunderstood aspects of the UK tax system.
3. What happens to my personal allowance if I earn over £100,000?
Above £100,000 your Personal Allowance is reduced by £1 for every £2 of income above that threshold. This taper continues until the allowance reaches zero at £125,140. In practical terms this creates an effective marginal tax rate of 60% on income between £100,000 and £125,140, because each additional pound of income both attracts higher rate tax at 40% and causes the loss of tax-free allowance that is itself taxed at 40%. The best way to manage this is to ensure your adjusted net income — gross income minus Gift Aid donations and pension contributions — stays below £100,000. Making a pension contribution of, say, £5,000 when earning £105,000 brings your adjusted net income back to £100,000 and restores the full Personal Allowance, saving considerably more in tax than the contribution itself costs in net terms.
4. How does Scotland's income tax differ from the rest of the UK?
Scotland uses a six-band income tax structure set by the Scottish Parliament, whereas England, Wales, and Northern Ireland use three bands. The Personal Allowance is the same at £12,570, but Scottish taxpayers face different rates above that. The Starter rate (19%) and Basic rate (20%) are broadly similar to the UK-wide structure, but the Intermediate rate (21%) creates an additional step, and the Higher rate of 42% and Advanced rate of 45% are both above their UK equivalents of 40% and 45% respectively. At the very top, Scotland's Top rate of 48% applies above £125,140, compared to 45% across the rest of the UK. This means that Scottish taxpayers on higher incomes generally pay more income tax than equivalent earners elsewhere in the UK, though they may benefit from additional Scottish Government spending funded partly by this differential. The bands are set annually through the Scottish Rate Resolution passed by the Scottish Parliament, separate from the UK Budget.
5. What is the scientific source for this calculator?
This calculator is based on HMRC's official income tax rates and allowances publications for the 2025/26 tax year, the relevant Finance Act provisions governing Personal Allowance thresholds and band widths, and the Scottish Rate Resolution passed by the Scottish Parliament for the Scottish-specific income tax bands and rates. The Personal Allowance taper is governed by section 35 of the Income Tax Act 2007 as amended. The Scottish bands and rates are set through the Scottish Parliament's annual rate-setting process under the Scotland Act 2016. All figures used in this calculator reflect the legislation and HMRC guidance in force for the tax year running from 6 April 2025 to 5 April 2026.