UK Income Tax Calculator
Estimate UK income tax on your annual income with the personal allowance, basic, higher and additional rates.
The UK income tax calculator estimates how much income tax you pay on an annual salary. Everyone gets a personal allowance, and income above £100,000 gradually loses it — which creates an effective 60% band that surprises many higher earners.
How to use the calculator
- Enter your annual gross income before tax.
- The calculator applies the personal allowance, including the taper above £100,000.
- Read your income tax, allowance, take-home income and effective rate.
- Use it as a planning estimate, then confirm with HMRC\u2019s official tools.
How it is calculated
Basic rate 20% on the first £37,700 of taxable income
Higher rate 40% up to £125,140 · Additional rate 45% above
Worked example
£60,000 annual income
Taxable income = £47,430 after the £12,570 allowance
Tax ≈ £7,540 at 20% plus £3,892 at 40% = about £11,432 (effective rate ≈ 19%).
Who should use this calculator
- UK employees checking how much income tax is taken from a salary before budgeting.
- Anyone weighing up a pay rise, bonus or a second job and wanting to see the real net effect.
- Self-employed people estimating a tax bill on a projected annual profit.
- People comparing a UK offer with an overseas one, where tax is calculated very differently.
Common mistakes to avoid
- Missing the £100,000 taper. The personal allowance falls by £1 for every £2 of income above £100,000, which creates an effective 60% tax band. A bonus in that range is heavily taxed.
- Forgetting National Insurance. Income tax is only part of the deduction. Class 1 NIC adds a further amount for employees, so take-home is lower than the tax figure alone suggests.
- Assuming one set of UK rates. Scotland has its own income tax bands and rates for non-savings income. The rates here apply to England, Wales and Northern Ireland.
- Ignoring pension contributions. Salary sacrificed into a pension reduces taxable income and can pull you back below a threshold, which changes the calculation considerably.
- Overlooking student loan repayments. Plan 1, 2 and 4 repayments are collected through payroll and are not part of income tax, but they reduce take-home in the same way.
The £100,000 trap
Most UK taxpayers get a personal allowance of £12,570 before any tax is due. Above £100,000 that allowance is withdrawn at £1 for every £2 earned, so between £100,000 and £125,140 the effective marginal rate is about 60% — far higher than the 40% higher rate it is nominally part of.
On £60,000 of income, the tax works out at roughly £11,432 once the allowance and the 20% and 40% bands are applied. That is an effective rate of about 19%. Because the taper catches people unexpectedly, anyone earning near £100,000 should model a bonus carefully, and consider whether pension contributions would reduce taxable income more efficiently than taking the cash.
UK tax terms explained
- Personal allowance
- £12,570 of income free of tax, reduced above £100,000 through the taper.
- Basic rate
- 20% on taxable income up to the basic-rate limit.
- Higher and additional rates
- 40% above the basic band, and 45% on income above £125,140.
- National Insurance
- A separate contribution on earnings, deducted alongside income tax.
- Scottish rates
- Different bands and rates that apply to non-savings income for Scottish taxpayers.
Pension contributions as a tax tool
Pension contributions receive relief at your marginal rate, so they are more valuable the higher your band. A basic-rate taxpayer saves 20%; a higher-rate taxpayer saves 40%. Through salary sacrifice, where you give up salary in exchange for an employer pension contribution, National Insurance is also reduced, making the effective saving larger still.
The most useful case is income between £100,000 and £125,140. Because the personal allowance is being tapered away, additional pension contributions can restore it, turning an effective 60% marginal rate back into something far lower. Anyone in that band should model a contribution before accepting a bonus as cash.
Frequently asked questions
When do I pay the 40% higher rate?
Once your taxable income crosses £37,700 you start paying 40% on the excess. Because the personal allowance is also tapered above £100,000, income between £100,000 and £125,140 can be taxed at an effective rate of about 60%.
Is National Insurance included?
No. This calculator covers income tax only. Class 1 National Insurance adds a further deduction for employees, so your actual take-home will be lower than the figure shown here.
Do Scottish rates apply to me?
If you live in Scotland, different income tax bands and rates apply to non-savings income. This calculator uses England, Wales and Northern Ireland rates.