Income Tax Calculator

Use our free UK income tax calculator to find out exactly how much income tax you owe for the 2026/27 tax year. Enter your annual salary and the calculator breaks down your liability across every tax band in seconds — no sign-up, no jargon, no guesswork.

How UK Income Tax Works in 2026/27

Income tax in the United Kingdom is a progressive tax, which means the rate you pay increases as your income rises. Crucially, you only pay the higher rate on the slice of income that falls into that band — not on everything you earn. The 2026/27 thresholds remain frozen at 2022 levels under the government’s multi-year freeze policy.

Every UK resident receives a Personal Allowance of £12,570 — the amount you can earn before paying any income tax. If your income exceeds £100,000, this allowance is gradually reduced by £1 for every £2 earned above that threshold. At £125,140, the Personal Allowance is eliminated entirely, creating an effective marginal rate of 60% on income between £100,000 and £125,140.

Income Tax Bands and Rates 2026/27

For England, Wales, and Northern Ireland, the rates are as follows. The basic rate of 20% applies to taxable income between £12,571 and £50,270. The higher rate of 40% applies to income from £50,271 up to £125,140. Above £125,140, the additional rate of 45% applies. Scotland has separate rates set by the Scottish Parliament, including a 19% starter rate and a 21% intermediate rate.

How to Calculate Your Income Tax — Step by Step

Working out your tax bill manually is straightforward once you understand the structure. First, subtract your Personal Allowance from your gross income to find your taxable income. Then apply each band in turn: 20% on the first £37,700 of taxable income, 40% on the next £74,870, and 45% on anything above that. Add the results together for your total income tax liability.

For example, on a salary of £55,000:

• Taxable income: £55,000 − £12,570 = £42,430
• Basic rate (20% on £37,700): £7,540
• Higher rate (40% on £4,730): £1,892
• Total income tax: £9,432

Remember, National Insurance is a separate deduction and is not included in the income tax figure. If you want to see your complete take-home pay including both income tax and NI in one place, use our Take-Home Pay Calculator.

Frequently Asked Questions

Enter your annual gross salary — the full figure before any deductions — and select your pay frequency. If you are paid monthly, the calculator automatically annualises. Choose England, Wales, Northern Ireland, or Scotland. Scottish income tax uses different bands set by Holyrood; your region is where you live, not where your employer is registered. Add pension contributions if relevant: salary sacrifice schemes reduce both taxable income and NI, while standard employee contributions reduce only income tax. Student loan selections matter too — Plan 1, 2, 4, or 5 all have different thresholds. Results show income tax by band, National Insurance, and your take-home annually, monthly, and weekly, plus effective and marginal rates. Hourly workers: select ‘Per Hour’ and the calculator uses a standard 40-hour week to annualise.