Income Tax Calculator (2025/26)
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 2025/26?▾
£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 — dividends use separate rates (8.75%, 33.75%, 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.