Payroll Tax Calculator UK

What Is a Payroll Tax Calculator?

A payroll tax calculator helps you calculate employer and employee payroll taxes including Income Tax, National Insurance and pension contributions. This payroll tax calculator UK shows the full tax breakdown for both employers and employees.

How to Use the Payroll Tax Calculator

Enter the annual salary, select pay frequency, tax region, tax code, and enter employee pension. Click Calculate Payroll Tax to see the full tax breakdown including employer NI.

How Payroll Tax Is Calculated

Payroll Tax Example

Payroll Tax Breakdown

• Income Tax — deducted via PAYE based on tax code
• Employee National Insurance — 8% on earnings between £12,570 and £50,270, 2% above
• Employer National Insurance — 13.8% on earnings above £9,100 (2025/26)
• Employee Pension — deducted from gross salary

Income Tax (2025/26)

Band	England / Wales / NI	Scotland
Personal Allowance	0% up to £12,570	0% up to £12,570
Starter Rate	N/A	19% £12,571-£14,802
Basic Rate	20% £12,571-£37,700	20% £14,803-£26,998
Intermediate Rate	N/A	21% £26,999-£43,732
Higher Rate	40% £37,701-£125,140	42% £43,733-£125,140
Additional / Top Rate	45% over £125,140	48% over £125,140

National Insurance (2025/26)

• Employee NI: 8% on earnings between £12,570 and £50,270, 2% above
• Employer NI: 13.8% on earnings above £9,100

Employer National Insurance Explained

Employer National Insurance is an additional cost paid by employers on top of employee salaries. For 2025/26, the rate is 13.8% on earnings above the secondary threshold of £9,100. This calculator includes employer NI in the total payroll tax.

Employee vs Employer Costs

• Employee cost: Income Tax + Employee NI + Employee Pension
• Employer cost: Gross Salary + Employer NI + Employer Pension
• Total payroll tax: Employee Taxes + Employer Taxes

Common Payroll Tax Mistakes

• Using the wrong tax code — affects employee deductions.
• Forgetting employer NI — adds significant cost to employers.
• Using the wrong tax region — Scotland has different rates.
• Incorrect salary calculations — ensure salary is annualised correctly.
• Not including pension — pension contributions affect tax calculations.

Important Assumptions and Limitations

• Tax year: 2025/26
• Personal Allowance: £12,570 (standard)
• Employer NI threshold: £9,100
• Employer NI rate: 13.8%
• No student loans or other deductions are included
• Results are estimates, not exact payroll calculations

Frequently Asked Questions