2025–26 Tax Year · Updated April 2025

UK Income Tax &
National Insurance Calculator

Type your salary. See what actually lands in your account — and exactly where the rest went.

Your Income Details
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Your 2025–26 Tax Breakdown
Annual Take-Home Pay
£0
£0 per month
Gross Income
£0
Income Tax
£0
National Insurance
£0
Pension (employee)
£0
Student Loan
£0
Effective Tax Rate
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Income Breakdown
70% Take-home
20% Income Tax
10% NI
Tax Band Breakdown
How it works

How UK Income Tax Is Calculated

UK income tax uses a progressive banded system — you pay a different rate on each portion of your income, not one flat rate on all of it. Your tax-free Personal Allowance means the first £12,570 you earn each year is completely free of income tax.

01
Tax bands are marginal, not flat
Earning £55,000 doesn't mean you pay 40% on all of it. You pay 0% on the first £12,570, 20% on the next £37,700, and 40% only on the last £4,730. Each band only applies to income within its range.
02
The £100K trap
Once your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 earned over the threshold. Between £100,000 and £125,140, your effective marginal rate is 60% — making pension contributions especially valuable in this range.
03
Scotland has its own rates
Scottish taxpayers pay income tax under SRIT, which has six bands rather than England's three. Scottish rates differ from UK rates — notably a 21% intermediate rate and a 42% higher rate — which can mean paying more or less than an equivalent English earner.
04
Pension contributions reduce your tax bill
Contributions to a workplace pension are usually made from pre-tax salary, which reduces your taxable income pound for pound. A higher-rate taxpayer contributing £1,000 into their pension effectively costs only £600 after the 40% tax relief.
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Frequently Asked Questions
What is the income tax Personal Allowance for 2025–26?

The Personal Allowance for 2025–26 is £12,570 — unchanged since 2021–22 and frozen until 2028. This means the first £12,570 of your income is free of income tax. If your income exceeds £100,000, your Personal Allowance begins to reduce (tapering to zero at £125,140).

What are the income tax rates for 2025–26 (England, Wales, NI)?

For England, Wales, and Northern Ireland in 2025–26: Basic rate 20% on income from £12,571 to £50,270. Higher rate 40% on income from £50,271 to £125,140. Additional rate 45% on income above £125,140. These bands have been frozen, which means more people are pulled into higher brackets each year as wages rise.

How is National Insurance calculated for employees?

Employee Class 1 NI for 2025–26: 8% on earnings between the Primary Threshold (£12,570 per year) and the Upper Earnings Limit (£50,270 per year). 2% on earnings above £50,270. Employer NI (not deducted from your pay) is 13.8% on earnings above £9,100 per year — though from April 2025 the employer threshold decreased and the rate increased to 15%.

Do Scottish taxpayers pay different rates?

Yes. Scotland sets its own income tax rates and bands under the Scottish Rate of Income Tax (SRIT). For 2025–26, Scotland has six bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%). The higher rate kicks in at £43,662 rather than England's £50,270, meaning many Scottish higher earners pay more tax than their English counterparts.

How do pension contributions affect my tax?

Workplace pension contributions (relief at source or salary sacrifice) reduce your taxable income. A £1,000 gross pension contribution costs a basic-rate taxpayer £800, a higher-rate taxpayer £600, and an additional-rate taxpayer £550. Pension contributions are particularly powerful for those earning between £100,000 and £125,140, where the effective marginal tax rate is 60% due to the Personal Allowance taper.