United Kingdom · 2026/27
United Kingdom Income tax calculator
Work out the Income Tax due on an annual income in the UK for the 2026/27 tax year, using the rates for England, Wales and Northern Ireland.
| Personal allowance | £12,570.00 |
| Taxable income | £37,430.00 |
| Income after tax | £42,514.00 |
The calculator strips out your tax-free Personal Allowance first, then charges each slice of what is left at the rate for the band it falls in, so you see the real tax bill rather than a flat percentage of everything you earn. It is the quickest way to sanity-check a payslip, weigh up how much of a pay rise you would actually keep, or work out what a second income or a bonus would add to the year. This is Income Tax only; National Insurance is separate and is shown by the salary calculator, and Scotland runs its own set of bands.
How it works
- Everyone gets a Personal Allowance of £12,570 taxed at 0%. It tapers away above £100,000 and reaches zero at £125,140.
- Income above the allowance is split into bands. Only the part of your income that falls inside a band is charged at that band rate, so moving into a higher band never taxes the money below it more heavily.
- The rest is taxed at 20% up to £50,270, 40% up to £125,140, and 45% above that.
- Because the tapering allowance and the graduated bands work together, your effective rate, the tax as a share of the whole income, sits below the top band you reach for almost everyone.
- Savings and dividend income can be taxed at different rates, and they have their own allowances, so they are not covered here.
Worked example
A £50,000 income in 2026/27 has £37,430 taxable after the £12,570 allowance, all in the basic band, giving £7,486 of Income Tax.
Key facts
- The Personal Allowance is the tax-free slice everyone starts with; only income above it is charged at all.
- Bands are marginal, so each rate applies to its own slice of income rather than to the whole amount.
- Between £100,000 and £125,140 the tapering allowance creates a hidden marginal cost well above the headline 40% rate.
- The effective rate, tax divided by total income, is the fairer measure of the burden and always sits below the top band reached.
Tips
- Read the effective rate, not just the top band, when judging how much of your income actually goes in tax.
- If your income is near £100,000, a pension contribution can restore some Personal Allowance and soften the taper.
- Compare a pay rise on an after-tax basis, since the bands mean you keep a smaller share of income in the higher ranges.
- For the full picture of take-home pay, run the same figure through the salary calculator so National Insurance is included.
Frequently asked questions
Does this include National Insurance?+
No. This is Income Tax only. To see tax and National Insurance together as take-home pay, use the salary calculator.
Is this right for Scotland?+
No. Scotland sets its own Income Tax bands, so a Scottish taxpayer pays a different amount. A Scotland version is planned.
Are dividends and savings taxed the same way?+
No. Dividends and savings interest have their own allowances and rates, so this general calculator does not cover them.
What happens to my allowance over £100,000?+
It reduces by £1 for every £2 of income above £100,000 and disappears entirely at £125,140, which creates an effective 60% band in between, because each extra £1 earned is taxed and also drags £0.50 of allowance into charge.
Will moving into a higher band leave me worse off?+
No. The bands are marginal, so a higher rate only touches the income above its threshold. A pay rise always leaves you with more after tax through the bands alone, though it can interact with the allowance taper or with benefit thresholds.
Why is my effective rate lower than my top band?+
Because the first £12,570 is taxed at 0% and the next slice at 20% before any higher rate applies. Averaging those lower charges across the whole income pulls the overall rate below the highest band you reach.
Sources
Last updated: 2026-04-06 · Applies to 2026/27
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- England, Wales and Northern Ireland only. Excludes National Insurance, dividends and savings income.
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