Home / Income Tax Calculator

UK Income Tax Calculator 2025/26

Calculate your income tax, National Insurance, and take-home pay. Detailed breakdown for England, Wales, and Scotland with student loan options.

Your Income Details

£
£

Annual: £0 (0% of salary)

£

Your Take-Home Pay

Monthly Take-Home
£0
After all deductions
Annual Net
£0
Income Tax
£0
National Insurance
£0
Effective Tax Rate
0%

💰 Monthly Deductions

  • Gross Salary £0
  • Income Tax -£0
  • National Insurance -£0
  • Net Take-Home £0

📊 Detailed Tax Band Breakdown

See how your income is taxed in each band

Tax Band Income Range Rate Taxable Income Tax Paid

National Insurance Breakdown

NI Band Income Range Rate NI Paid

📚 Tax Jargon Buster

Click on any term to learn more

💷 Personal Allowance ▼
The amount you can earn tax-free each year. For 2025/26, it's £12,570. You don't pay any income tax on earnings below this. However, it reduces by £1 for every £2 earned over £100,000.
📊 Tax Bands ▼
Income ranges taxed at different rates. In England: 20% basic rate (£12,571-£50,270), 40% higher rate (£50,271-£125,140), 45% additional rate (over £125,140). Scotland has more bands.
🏥 National Insurance (NI) ▼
A separate tax paid on earnings to fund NHS, state pension, and benefits. For 2025/26: 0% up to £12,570, 8% on £12,571-£50,270, 2% over £50,270. Different from income tax.
🎓 Student Loan Repayment ▼
Automatic deductions if you earn over the threshold. Plan 1: 9% over £24,990. Plan 2: 9% over £27,295. Plan 4: 9% over £31,395. Postgrad: 6% over £21,000. Can have multiple plans.
💰 Gross vs Net Income ▼
Gross: Your salary before any deductions. Net (Take-Home): What you actually receive after tax, NI, pension, and student loan deductions. Most people focus on net income for budgeting.
🏴󠁧󠁢󠁳󠁣󠁴󠁿 Scottish Tax Rates ▼
Scotland has different income tax bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), Top (48%). National Insurance is the same across UK.
📈 Effective Tax Rate ▼
Your average tax rate across all income. Calculated as: (Total Tax ÷ Gross Income) × 100. Different from marginal rate (tax on next £1 earned). Useful for comparing overall tax burden.
💼 Pension Tax Relief ▼
Pension contributions reduce your taxable income. Basic rate taxpayers get 20% relief automatically. Higher/additional rate taxpayers can claim extra relief (20%/25%) via self-assessment. Saves you tax now, builds retirement pot.
📋 Tax Code ▼
A code on your payslip telling your employer how much tax to deduct. Most common is 1257L (standard personal allowance). Check yours is correct - wrong code means wrong tax paid!
🔄 PAYE (Pay As You Earn) ▼
The system where employers deduct tax and NI before paying you. Means you don't need to pay tax yourself (unless self-employed or have other income). Most employees are on PAYE.
📅 Tax Year ▼
Runs from 6 April to 5 April (not calendar year). Current year is 2025/26. Important for tax returns, ISA allowances, and pension contributions. Rates usually announced in March Budget.
💡 Marginal Tax Rate ▼
The tax rate on your next £1 of income. If you're a basic rate taxpayer, it's 20% + 8% NI = 28%. Higher rate is 40% + 2% NI = 42%. Important for overtime, bonuses, and pay rises.

How the UK Tax System Works

The UK tax system has two main components:

1. Income Tax

Paid on earnings above your personal allowance (£12,570 for 2025/26). Tax bands apply progressively - you only pay higher rates on income within that band, not your entire income.

2. National Insurance

A separate contribution that funds the NHS, state pension, and unemployment benefits. Rates differ from income tax and apply on earnings above £12,570.

Key Differences: England vs Scotland

  • England/Wales/NI: 3 tax bands (20%, 40%, 45%)
  • Scotland: 6 tax bands (19%, 20%, 21%, 42%, 45%, 48%)
  • National Insurance: Same across entire UK

Reducing Your Tax Bill

  • Pension contributions: Get tax relief at your marginal rate
  • Salary sacrifice: Exchange salary for benefits (reduces taxable income)
  • ISAs: Interest and gains are tax-free
  • Marriage allowance: Transfer 10% of personal allowance to spouse
  • Charitable donations: Gift Aid adds 25% from government

⚠️ Disclaimer: This calculator provides estimates based on 2025/26 tax rates. Actual deductions may vary based on your tax code, benefits, and other factors. This is for guidance only and not tax advice. Consult HMRC or a tax advisor for specific situations.