UK Income Tax Calculator
Calculate your estimated income tax and take-home pay.
Income tax estimate only. Excludes National Insurance, student loans, benefits in kind, dividend/savings tax, and many reliefs. Pension treatment varies by scheme.
UK Income Tax Calculator: How to Calculate Your Income Tax and Take-Home Pay
Understanding how much income tax you pay in the United Kingdom can help you plan your monthly budget and manage your finances. The amount of tax you pay depends on your taxable income, Personal Allowance, tax bands, and where you live in the UK.
Our UK Income Tax Calculator provides an illustrative estimate of annual income tax and take-home pay. You can select a tax year, choose your UK region, enter your annual income, and include pension contributions and other adjusted net income.
What Is UK Income Tax?
Income tax is a tax charged on certain types of income earned by individuals in the United Kingdom. This can include employment income, self-employment profits, pensions, rental income, savings interest, and other taxable income.
The UK uses a progressive income tax system. This means different portions of taxable income can be taxed at different rates. Your tax liability depends on the applicable tax rules, your income, and your circumstances.
How Does the UK Income Tax Calculator Work?
The calculator uses the income and other details you enter to estimate your Personal Allowance, taxable income, and income tax across the tax bands included in its calculation.
Select 2025/26 or 2026/27 to identify the tax year for your estimate.
Select England, Wales, Northern Ireland, or Scotland because Scottish income tax bands differ from those used elsewhere in the UK.
Enter your annual income before income tax deductions.
Enter pension contributions and other adjusted net income to help estimate the Personal Allowance reduction.
What Is the Personal Allowance?
The Personal Allowance is the amount of income an eligible individual can receive before paying income tax. The standard Personal Allowance used in this calculator is £12,570.
The Personal Allowance may be reduced for people with adjusted net income above £100,000. It is generally reduced by £1 for every £2 of adjusted net income above that threshold. It can eventually be reduced to zero.
Understanding UK Income Tax Bands
Income tax is calculated using tax bands. The rate that applies to an additional portion of income is often called the marginal tax rate. Your entire income is not necessarily taxed at your highest rate.
England, Wales and Northern Ireland
These regions generally use the same main non-savings income tax structure. The familiar tax bands include the basic rate, higher rate, and additional rate. The applicable thresholds and rates should be checked for the relevant tax year.
- Basic rate: The first taxable income band above the Personal Allowance.
- Higher rate: The next portion of taxable income above the basic-rate band.
- Additional rate: The portion of taxable income above the higher-rate threshold.
Scotland
Scotland has a different income tax structure for most non-savings and non-dividend income. It uses additional bands compared with the main structure in England, Wales, and Northern Ireland.
- Starter rate: The first taxable income band.
- Basic rate: The next taxable income band.
- Intermediate rate: A further income band.
- Higher rate: A higher taxable income band.
- Advanced rate: A further band for higher incomes.
- Top rate: The highest Scottish income tax band.
Scottish rates and thresholds can change between tax years, so always check the relevant official guidance.
How Is Income Tax Calculated?
The calculator first estimates adjusted net income using annual gross income, other adjusted net income, and pension contributions.
It then estimates any reduction in the Personal Allowance where adjusted net income exceeds £100,000.
After estimating the available Personal Allowance, the calculator subtracts it from annual gross income to estimate taxable income.
The taxable income is then divided into the tax bands included in the calculator. The tax due in each band is calculated separately and added together.
How Is Take-Home Pay Estimated?
After calculating estimated income tax, the calculator subtracts that amount from annual gross income to show an estimated annual amount remaining after income tax.
The monthly figure is an average based on twelve months. It is not a payslip calculation and does not include National Insurance, student loan repayments, or other payroll deductions.
How to Use the UK Income Tax Calculator
- Select the tax year: Choose 2025/26 or 2026/27.
- Choose your region: Select England, Wales, Northern Ireland, or Scotland.
- Enter annual gross income: Add your annual income before income tax.
- Enter pension contributions: Add qualifying gross pension contributions where relevant.
- Enter other adjusted net income: Include other relevant income for the Personal Allowance taper estimate.
- Check your Personal Allowance: Review the allowance amount entered in the calculator.
- Calculate: Select the calculation button to view estimated income tax and take-home pay.
- Review your results: Check the annual tax, effective tax rate, marginal tax rate, and estimated monthly amount.
Effective Tax Rate vs Marginal Tax Rate
The effective tax rate represents the estimated income tax as a percentage of your gross annual income.
The marginal tax rate is the rate applied to the next portion of taxable income under the relevant tax bands.
It can be different from your overall effective tax rate.
Frequently Asked Questions About UK Income Tax
What is the UK Income Tax Calculator?
How much is the standard UK Personal Allowance?
What happens when my income exceeds £100,000?
Are Scottish income tax rates different?
Do England, Wales and Northern Ireland use the same income tax bands?
What is the difference between gross income and taxable income?
Does this calculator include National Insurance?
Are pension contributions included in the calculation?
What is the effective income tax rate?
What is the marginal income tax rate?
Does the calculator include student loan repayments?
Why is my actual payslip different from the calculator result?
Is this an official HMRC calculator?
Understand Your UK Income Tax and Take-Home Pay
Knowing how income tax works can help you understand your earnings and plan your finances more effectively. Use this UK Income Tax Calculator to explore an illustrative tax estimate based on your annual income, region, and Personal Allowance.
For a more complete picture of your earnings, remember to consider National Insurance, pension contributions, student loan repayments, and any other deductions that may apply to you.