UK Tax Calculator
Calculate your 2025-26 Income Tax, National Insurance, student loan repayments, and pension deductions. See your take-home pay broken down annually, monthly, weekly, and daily.
Take-home
£37,520
Income Tax
£6,986
National Insurance
£2,994
Effective Rate
25.0%
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary | £50,000 | £4,167 |
| Income Tax | £6,986 | £582 |
| National Insurance | £2,994 | £250 |
| Pension | £2,500 | £208 |
| Net Pay | £37,520 | £3,127 |
Tax Rules Current As Of: June 2026
This calculator uses United Kingdom tax rates for 2025-26. Tax rules are sourced from HM Revenue & Customs (HMRC). Rates are periodically verified but may not reflect the most recent changes.
Estimate Only — Not Tax Advice
This calculator provides simplified estimates for informational purposes only. Results may not account for all deductions, credits, surcharges, or individual circumstances applicable to your situation. Always consult a qualified tax professional or chartered accountant for accurate tax filing.
Assumptions
- Taxpayer is a resident individual
- Only employment/salary income is considered
- Standard deduction is applied automatically
- No capital gains, business income, or foreign income
- Taxpayer is a UK resident individual
- PAYE employment income only
- Personal Allowance £12,570 (tapers above £100K)
- National Insurance at employee Class 1 rates
Limitations
- This is an estimation tool — results may differ from official calculations
- Does not account for all possible credits, exemptions, or surcharges
- State/local tax rules may not be fully represented
- Tax laws change frequently — verify against official sources before filing
- Not a substitute for professional tax advice
- Scottish income tax rates not included (differ from rUK)
- Does not handle multiple employments or self-employment
- Marriage allowance and blind person allowance not included
- Child benefit tax charge not calculated
How the UK Tax Calculator Works
This calculator computes your 2025-26 Income Tax, National Insurance contributions (Class 1), student loan repayments, and pension deductions based on your annual gross salary. It applies HMRC's progressive tax bands, the Personal Allowance taper above £100,000, and NI thresholds to provide an accurate take-home pay estimate.
UK Tax Bands 2025-26
PA: £12,570 (0%) | Basic: £12,571–£50,270 (20%) | Higher: £50,271–£125,140 (40%) | Additional: £125,140+ (45%) NI: 8% on £12,570–£50,270, 2% above | PA tapers £1 for every £2 above £100K
Worked Example — £55,000 with Plan 2 Student Loan & 5% Pension
- • Gross Salary: £55,000
- • Pension (5% salary sacrifice): −£2,750
- • Adjusted Gross: £52,250
- • Income Tax: 20% on £37,700 (Basic) + 40% on £1,980 (Higher) = £8,332
- • NI: 8% on £37,700 + 2% on £1,980 = £3,056
- • Student Loan (Plan 2): 9% × (£52,250 − £27,295) = £2,246
- • Total Deductions: £16,384 | Take-Home: £38,616/year (£3,218/month)
How to Interpret Results
Watch for the 60% tax trap between £100,000 and £125,140. In this range, you lose £1 of Personal Allowance for every £2 earned, creating an effective 60% marginal rate (40% tax + 20% lost allowance). NI thresholds create a second jump point where your rate drops from 8% to 2% above £50,270. Understanding these cliff edges helps with salary sacrifice decisions.
Practical Use Cases
- Salary sacrifice pension decisions — see combined tax + NI savings (up to 48% for higher-rate earners)
- Student loan repayment strategy — determine if voluntary overpayments beat investment returns
- Pay rise impact analysis — check if a raise crosses the £50,270 or £100K threshold
- Contractor vs permanent comparison — compare gross contract rates to net PAYE salary
- Bonus planning — decide whether to sacrifice a bonus into pension before the 60% trap
Common Mistakes
- Not understanding the £100K Personal Allowance taper — earning £125,140 effectively costs 60% tax on that band
- Ignoring pension tax relief — salary sacrifice saves both income tax AND National Insurance
- Forgetting student loan is on gross above threshold — Plan 2 adds 9% above £27,295, stacking on top of tax
- Assuming Scottish rates are the same — Scotland has different bands (19%, 20%, 21%, 42%, 45%, 48%)
- Not claiming Marriage Allowance — transfers £1,260 PA to a non-taxpayer spouse, saving £252/year
Frequently Asked Questions
What are the UK income tax bands for 2025-26?
For 2025-26: Personal Allowance is £12,570 (0%), Basic Rate is 20% on £12,571-£50,270, Higher Rate is 40% on £50,271-£125,140, and Additional Rate is 45% above £125,140. The Personal Allowance reduces by £1 for every £2 earned above £100,000.
How does National Insurance work?
For 2025-26, employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. This is Class 1 NI and funds state pension, NHS, and benefits. Employers also pay 13.8% NI on your earnings.
How is student loan repayment calculated?
Plan 1 (pre-2012): 9% on income above £22,015. Plan 2 (post-2012): 9% above £27,295. Plan 4 (Scotland): 9% above £27,660. Plan 5 (post-2023): 9% above £25,000. Postgraduate: 6% above £21,000. These are collected via PAYE.
What happens to Personal Allowance above £100K?
Your Personal Allowance (£12,570) reduces by £1 for every £2 earned above £100,000. This creates an effective 60% tax rate between £100K and £125,140. Above £125,140, your allowance is zero.
Does pension contribution reduce tax?
Yes. Salary sacrifice pension contributions reduce your taxable income, saving both income tax and NI. For example, a 40% taxpayer putting £100 into pension only costs £52 in take-home pay (saves £40 tax + £8 NI).