Tax Calculator

What this calculator does

The UK Income Tax Calculator takes a gross annual salary plus optional pension contribution, student loan plan, and tax code, then returns Income Tax, National Insurance, student loan deduction, and net take-home pay against HMRC's 2026/27 thresholds — broken down per band so each pound's destination is visible on screen.

Common moments to reach for it: comparing a pay rise or new job offer, switching pension contribution rate, moving between England and Scotland for residency (the Scottish bands differ from the rest of the UK), year-end planning around the £100,000 Personal Allowance taper, or sanity-checking a payslip line against the latest HMRC bands before flagging an error to payroll.

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Worked example: £35,000 salary, England, 2026/27

A single earner on £35,000 with the standard tax code 1257L and no student loan keeps the first £12,570 free under the Personal Allowance (HMRC 2026/27). That leaves £22,430 of taxable pay.

The full slice falls inside the basic-rate band, which charges 20% on taxable income up to £50,270 (HMRC). Income Tax works out at £22,430 × 20% = £4,486. No higher-rate tax applies because total pay sits well below the £50,270 threshold.

National Insurance follows the same threshold logic: Class 1 employee NI runs at 8% on earnings between the £12,570 Primary Threshold and the £50,270 Upper Earnings Limit (HMRC 2026/27). NI works out at £22,430 × 8% = £1,794.40.

Total deductions: £4,486 + £1,794.40 = £6,280.40. Net take-home: £35,000 − £6,280.40 = £28,719.60, or roughly £2,393 a month.

The calculator reproduces this breakdown line by line, including the per-band figures, so the £4,486 Income Tax and £1,794.40 NI appear separately rather than as a single lump deduction.

Worked example: £60,000 salary with £5,000 pension contribution

A higher-rate earner on £60,000 contributing £5,000 a year through salary sacrifice or a net-pay pension reduces taxable pay to £55,000 before Income Tax is calculated (HMRC pension tax relief).

The Personal Allowance covers the first £12,570 (HMRC 2026/27). The basic-rate band (20% to £50,270) is fully used: £37,700 × 20% = £7,540. The higher-rate slice (40% above £50,270) becomes £4,730 × 40% = £1,892. Total Income Tax: £9,432.

Without the pension, the higher-rate slice would be £9,730 × 40% = £3,892, lifting the tax bill to £11,432. The £5,000 pension contribution therefore cuts Income Tax by roughly £2,000.

Salary sacrifice also reduces National Insurance: the 2% slice above £50,270 (HMRC) shrinks from £9,730 to £4,730, saving about £100 in employee NI on top of the tax saving (with further employer NI relief that many schemes pass back through enhanced contributions).

Worked example: same £50,000 salary, Scotland vs England

The same £50,000 salary produces different Income Tax bills in Scotland and the rest of the UK, because Holyrood sets its own rates and bands (gov.uk Scottish Income Tax).

England, Wales and Northern Ireland (2026/27): Personal Allowance £12,570, then 20% on the remaining £37,430 = £7,486 Income Tax (HMRC). No higher-rate tax — £50,000 sits just below the £50,270 threshold.

Scotland (2026/27 rates as set by the Scottish Parliament): the same £12,570 Personal Allowance, then six bands — Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45% and Top 48% (gov.uk). A £50,000 salary cuts through Starter, Basic and Intermediate, then into Higher, producing Income Tax in the region of £9,000 — roughly £1,500 more than the English figure on the same gross pay.

National Insurance is a UK-wide HMRC charge, so the 8% and 2% deductions are identical for both residences (HMRC).

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Key tax concepts in 2026/27

Income Tax bands. The Personal Allowance is £12,570, basic rate 20% applies on taxable income to £50,270, higher rate 40% to £125,140, and additional rate 45% above that (HMRC). The Personal Allowance and basic-rate threshold are frozen until April 2031.

National Insurance. Class 1 employee NI runs at 8% between the £12,570 Primary Threshold and the £50,270 Upper Earnings Limit, then 2% on earnings above (HMRC 2026/27). Self-employed Class 4 uses different thresholds but the same broad rate structure.

Personal Savings Allowance. Basic-rate taxpayers can earn £1,000 of savings interest tax-free; higher-rate taxpayers £500; additional-rate taxpayers £0 (HMRC). The PSA sits on top of the £5,000 starting rate for savings, which tapers as non-savings income rises.

The 60% trap. Above £100,000 the Personal Allowance is withdrawn by £1 for every £2 of income, fully removed by £125,140 (HMRC). The combined effect of losing allowance and paying 40% on the additional income creates an effective marginal rate of around 60% on earnings between those two figures. Pension contributions reduce adjusted net income for the taper test, which can claw the allowance back.

Marriage Allowance. A non-taxpaying spouse or civil partner can transfer £1,260 of unused Personal Allowance to a basic-rate partner, cutting the recipient's annual bill by up to £252 (HMRC). The transfer can be backdated up to four tax years where both partners met the eligibility criteria.

More frequently asked questions

What is an HMRC tax code and how do I read it?

A tax code tells an employer how much tax-free pay to apply each period — 1257L means a £12,570 Personal Allowance, with letters signalling adjustments: K (negative allowance), M/N (Marriage Allowance recipient/transferor), BR (all pay at basic rate), D0 (higher rate), D1 (additional rate) (HMRC tax codes).

Does a pension contribution reduce my Income Tax?

Yes — relief-at-source schemes add 20% basic-rate relief at source; higher- and additional-rate taxpayers claim the extra relief through Self Assessment or by contacting HMRC (gov.uk pension tax relief). Net-pay and salary-sacrifice arrangements apply the full relief at payroll, so no separate claim is needed.

Who qualifies for Marriage Allowance and how do I claim?

One partner must earn below the £12,570 Personal Allowance and the other must be a basic-rate (not higher-rate) taxpayer (HMRC). Claims go through the Personal Tax Account on gov.uk and can be backdated up to four tax years where both partners qualified.

How is my tax-free allowance calculated if I have multiple jobs?

The main job typically uses code 1257L (full Personal Allowance) and the second job defaults to BR — 20% on every pound (HMRC). HMRC can split the allowance across both jobs on request if total income stays within the basic-rate band.