UK Tax Calculator 2025
Calculate your UK income tax liability for 2025/26 and previous years
Tax Calculation Results
Tax Bracket Breakdown
Complete the form above to see your tax calculation and bracket breakdown
Complete the form above to see your tax calculation and bracket breakdown
Understanding UK Income Tax
Learn about UK tax brackets, personal allowances, and how your tax is calculated
💰 Personal Allowance
The amount you can earn tax-free each year (£12,570 for 2025/26)
📊 Basic Rate
20% tax on income between £12,571 and £50,270
📈 Higher Rate
40% tax on income between £50,271 and £125,140
🔥 Additional Rate
45% tax on income above £125,140
⚠️ 60% Tax Trap
Effective 60% rate between £100,000-£125,140 due to personal allowance tapering
🏴 Coverage
England, Wales & Northern Ireland (Scotland has different rates)
Disclaimer: This calculator provides estimates for England, Wales, and Northern Ireland. Scotland has different tax rates. Always consult HMRC or a tax professional for official calculations.
How UK Income Tax Works
Understanding the progressive tax system, personal allowance, and how your tax liability is calculated
Progressive Tax Bands System
How UK Tax Bands Work
- • Each band only applies to income within that range
- • You don't pay your highest rate on all income
- • Lower bands are "filled up" first before higher rates apply
- • Personal allowance means the first portion is tax-free
2025/26 Tax Bands
Real-World UK Tax Calculation Examples
Personal Allowance & Tapering
💰 Personal Allowance
⚠️ The 60% Tax Trap
Additional Key Concepts
🏴 England, Wales & Northern Ireland
This calculator uses tax rates for England, Wales, and Northern Ireland. Scotland has different income tax rates and bands set by the Scottish Government.
📊 Effective vs Marginal Rate
Your marginal rate is the tax on your next pound earned. Your effective rate is your total tax divided by total income. These are usually different due to the progressive system.
Frequently Asked Questions
Common questions about UK income tax calculation
What is the personal allowance?
The personal allowance is the amount of income you're allowed to earn each year before you start paying income tax. For the 2025/26 tax year, it's £12,570. However, it's reduced if your income is over £100,000.
How does the 60% tax rate work?
When your income exceeds £100,000, your personal allowance is reduced by £1 for every £2 of income above this threshold. This creates an effective tax rate of 60% on income between £100,000 and £125,140 (40% income tax + 20% lost allowance).
Are pension contributions tax-deductible?
Yes, pension contributions receive tax relief at your marginal rate. This means they reduce your taxable income, potentially moving you into a lower tax bracket. The annual allowance for 2025/26 is £60,000.
What's the difference between marginal and effective tax rates?
Your marginal tax rate is the rate of tax you pay on your last pound of income. Your effective tax rate is your total tax divided by your total income. The marginal rate tells you how much tax you'd pay on additional income.
Does this calculator include National Insurance?
No, this calculator only shows income tax. National Insurance contributions are separate and would be additional to the tax shown here. A complete take-home pay calculation would need to include both income tax and National Insurance.