Income Tax Calculator UK

What Is Income Tax?

Income Tax is a tax on your earnings and other taxable income. In the UK, most people pay Income Tax on their salary, wages, pension income, self-employment profits and some other sources of income. This Income Tax calculator UK helps you estimate your Income Tax liability based on your income, tax code and region.

How to Use the Income Tax Calculator

Enter your annual income, select your tax region (England/Wales/Northern Ireland or Scotland), and optionally enter your tax code or personal allowance. Click Calculate Tax to see your Income Tax breakdown by tax band, your effective tax rate and your tax-free amount.

How Income Tax Works in the UK

UK Income Tax is calculated using a system of tax bands. You have a Personal Allowance — an amount of income you can earn each year before paying any tax. Income above your Personal Allowance is taxed at different rates depending on which tax band it falls into.

Income Tax Bands (England, Wales & Northern Ireland)

For the 2025/26 tax year, the tax bands for England, Wales and Northern Ireland are:

Band	Income Range	Rate
Personal Allowance	Up to £12,570	0%
Basic Rate	£12,571 to £37,700	20%
Higher Rate	£37,701 to £125,140	40%
Additional Rate	Over £125,140	45%

Income Tax Bands (Scotland)

For the 2025/26 tax year, the tax bands for Scottish taxpayers are:

Band	Income Range	Rate
Personal Allowance	Up to £12,570	0%
Starter Rate	£12,571 to £14,802	19%
Basic Rate	£14,803 to £26,998	20%
Intermediate Rate	£26,999 to £43,732	21%
Higher Rate	£43,733 to £125,140	42%
Top Rate	Over £125,140	48%

How Personal Allowance Works

Your Personal Allowance is the amount of income you can earn before paying Income Tax. For the 2025/26 tax year, the standard Personal Allowance is £12,570. This is reduced by £1 for every £2 of income above £100,000. If your income is over £125,140, you have no Personal Allowance.

Income Tax Example

Income Tax Calculator vs Pay Calculator

This Income Tax calculator focuses specifically on Income Tax liability. A pay calculator or salary calculator typically includes National Insurance, pension and other deductions. For a complete picture, use our Pay Calculator UK or Salary Calculator UK.

What Does "Taxable Income" Mean?

Your taxable income is your total income minus your Personal Allowance. Only taxable income is subject to Income Tax. Certain sources of income may be tax-free or have special rules.

How Tax Codes Affect Your Tax

Your tax code tells your employer how much tax to deduct from your pay. The most common tax code is 1257L, which means you have the standard Personal Allowance. Other tax codes may apply if you have benefits, unpaid tax, or other adjustments.

Income Tax in Scotland vs England

Scottish Income Tax rates and bands are different from England, Wales and Northern Ireland. Scottish taxpayers pay more tax on some income levels due to the intermediate and top rates. This calculator includes both options.

Common Income Tax Calculation Mistakes

• Forgetting your Personal Allowance — this is the first £12,570 of income that's tax-free.
• Using the wrong tax band — rates differ between England/Wales and Scotland.
• Ignoring the Personal Allowance reduction — if you earn over £100,000, your allowance is reduced.
• Not including all taxable income — dividends, savings interest and other income may be taxed.
• Confusing gross and net income — gross is before tax, net is after tax.

Important Assumptions and Limitations

• Tax year: 2025/26
• Personal Allowance: £12,570 (standard)
• No other deductions (pension, student loans, etc.) are included
• No benefits or salary sacrifice adjustments are included
• Results are estimates, not exact tax calculations

Frequently Asked Questions