UK Income Tax Calculator
Enter your annual salary to see exactly how much goes to income tax, National Insurance, and student loan repayments. Tax bands are from HMRC for 2025/26.
2025/26 tax bands
| Band | Rate | Income |
|---|---|---|
| Personal allowance | 0% | Up to £12,570 |
| Basic rate | 20% | £12,571 – £50,270 |
| Higher rate | 40% | £50,271 – £125,140 |
| Additional rate | 45% | Over £125,140 |
Personal allowance tapers by £1 for every £2 earned above £100,000, reaching zero at £125,140.
Tax bands from HMRC for 2025/26. Updated at each site build.
Where your salary goes
Income by tax band
How UK income tax bands work
UK income tax is progressive — you only pay each rate on the portion of income within that band, not your entire salary. The first £12,570 is tax-free (your Personal Allowance). The next slice up to £50,270 is taxed at 20% (basic rate). Earnings between £50,271 and £125,140 are taxed at 40% (higher rate). Everything above £125,140 is taxed at 45% (additional rate).
A common misconception is that crossing into the higher-rate band means all your income is taxed at 40%. Only the portion above £50,270 faces the higher rate. Someone earning £55,000 pays higher-rate tax on just £4,730 of that income.
The £100k tax trap
Earners between £100,000 and £125,140 face a hidden 60% effective tax rate. HMRC claws back £1 of Personal Allowance for every £2 earned above £100,000. Combined with the 40% higher rate, each extra £1 in this range costs 60p in tax — before National Insurance.
This makes pension contributions and salary sacrifice especially valuable for six-figure earners. Diverting income into a pension before it hits £100,000 restores the full Personal Allowance and avoids the 60% effective rate entirely.
National Insurance explained
Class 1 employee NI is 8% on earnings between £12,570 and £50,270, then 2% above that. Unlike income tax, NI has no personal allowance taper — the thresholds are fixed. NI is charged per pay period (weekly or monthly), not annually, though the effect on annual take-home is the same for salaried employees.
This calculator is for illustrative purposes only and does not constitute financial advice. Tax calculations are based on standard HMRC rates for 2025/26 and assume employment income only. Your actual tax may differ based on benefits in kind, pension contributions, marriage allowance, or other adjustments. You should seek independent financial advice before making any tax-related decisions.