What is UK Income Tax?
The UK Income Tax Calculator estimates your income tax and National Insurance contributions based on HMRC (Her Majesty's Revenue and Customs) tax bands for the 2025/26 tax year.
The UK uses a progressive tax system with three main bands: Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%). Everyone receives a tax-free Personal Allowance of £12,570, which tapers away for incomes above £100,000 and is fully eliminated at £125,140.
National Insurance (NI) is an additional payroll tax that funds the state pension and NHS. Employees pay 8% on earnings between £12,570 and £50,270, and 2% above that. NI is separate from income tax and is calculated weekly, not annually.
The UK tax year runs from April 6 to April 5. Most employees pay tax through PAYE (Pay As You Earn) — your employer deducts tax before paying you. Self-employed individuals file a Self Assessment tax return by January 31.
Key deductions available: pension contributions (reduces taxable income), Gift Aid donations (extends basic rate band), Marriage Allowance (transfer £1,260 to spouse), and Blind Person's Allowance (extra £2,870).
Note: Scotland has its own income tax rates (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%) which differ from the rest of the UK. This calculator uses England/Wales/NI rates.
Formula
UK Income Tax Bands 2025/26 (England/Wales/NI):
Personal Allowance: £0 – £12,570 → 0% Basic Rate: £12,571 – £50,270 → 20% Higher Rate: £50,271 – £125,140 → 40% Additional Rate: Over £125,140 → 45%
Personal Allowance taper: Reduced by £1 for every £2 earned above £100,000.
National Insurance (Class 1, Employee): £242 – £967/week → 8% Above £967/week → 2%
Worked Example — £45,000 salary, 5% pension: Pension: £2,250 Personal Allowance: £12,570 Taxable: £45,000 – £2,250 – £12,570 = £30,180 Tax: £30,180 × 20% = £6,036 NI: ~£2,669 Annual take-home: £45,000 – £6,036 – £2,669 – £2,250 = £34,045 Monthly take-home: £2,837
Tax at common salaries: - £30,000 → Tax £3,486, NI £1,685, Take-home £2,069/month - £50,000 → Tax £7,486, NI £3,285, Take-home £3,269/month - £80,000 → Tax £19,432, NI £3,885, Take-home £4,724/month - £100,000 → Tax £27,432, NI £4,285, Take-home £5,690/month
How to use this UK Income Tax Calculator?
1. Enter your Annual Salary (gross pay before any deductions).
2. Pension Contribution: Enter your workplace pension percentage. Auto-enrolment minimum is 5% (3% employer + 2% employee minimum). This reduces your taxable income.
3. Read Results: See your income tax, National Insurance, and monthly take-home pay.
Note: This calculator shows England/Wales/NI rates. Scottish taxpayers have different bands. Student loan repayments (Plan 1: 9% above £24,990, Plan 2: 9% above £27,295) are not included — subtract separately if applicable.