Mortgages & Money2 min check

Income Tax Calculator (2026/27)

Work out the Income Tax you'll pay on your salary or other earnings using current UK personal allowance and bands.

Short answer

Most UK earners pay 0% on the first £12,570, 20% up to £50,270, 40% up to £125,140 and 45% above. The personal allowance tapers away by £1 for every £2 earned over £100,000.

Step 1 of 10%

Calculation method, coverage and version

Inputs used: Total taxable income, Scottish taxpayer?.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Mortgages & Money. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

UK Income Tax is charged in slices. The first £12,570 (the personal allowance) is tax-free for most people. The next £37,700 is taxed at 20%, then 40% applies up to £125,140, and 45% above that. Earn over £100,000 and you lose £1 of allowance for every £2, so income between £100k and £125,140 is effectively taxed at 60%.

Scotland uses six bands (19% starter rate up to 48% top rate) on non-savings, non-dividend income.

Worked example

Sarah earns £55,000 in England.

£0–£12,570: tax-free → £0
£12,570–£50,270 at 20% → £7,540
£50,270–£55,000 at 40% → £1,892
Total: £9,432

Who should use this

•Employees checking their PAYE deductions
•Self-employed estimating Self Assessment liability
•Anyone considering a bonus, pay rise or pension contribution
•People earning near £100k worried about the allowance taper

Common mistakes

×Forgetting that pension contributions reduce taxable income
×Assuming the 40% rate kicks in at £50,270 of total income (it's £50,270 of taxable income, after allowance)
×Ignoring the 60% effective trap between £100k–£125,140
×Mixing up Scottish and rUK bands

Frequently asked questions

What is the UK personal allowance for 2026/27?▾

£12,570 for most people. It tapers down by £1 for every £2 of income over £100,000 and is gone entirely at £125,140.

When does 40% tax start?▾

Once your taxable income (after personal allowance) exceeds £37,700 — i.e. total income over £50,270 for most people in England, Wales and NI.

Is Scottish Income Tax different?▾

Yes — Scotland has six bands ranging from 19% to 48% on non-savings, non-dividend income. Savings and dividends still use UK-wide rates.

Does my pension contribution reduce my tax?▾

Yes. Relief-at-source and net pay arrangements both effectively give you tax relief at your marginal rate.

What is the 60% tax trap?▾

Income between £100,000 and £125,140 loses personal allowance, creating an effective marginal rate of 60% (40% tax + lost allowance).

Are dividends taxed at these rates?▾

No — for 2026/27 dividends use separate rates (10.75%, 35.75%, 39.35%) after a £500 allowance. See our Dividend Tax Calculator.

How is savings interest taxed?▾

The Personal Savings Allowance is £1,000 (basic rate) or £500 (higher). Above that, interest is taxed at your marginal Income Tax rate.

Do I need to file a tax return?▾

Generally yes if you're self-employed, earn over £150k, have untaxed income over £2,500, or HMRC asks you to.

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