Income Tax Calculator
Income tax is the single biggest deduction most people see on their payslip, yet the way it is actually worked out — a tax-free slice, then several bands taxed at different rates — often gets lost in a single “take-home pay” number. This calculator breaks a salary down band by band for the 2026/27 tax year, so you can see exactly where each pound goes rather than just the total at the bottom.
Income Tax Calculator
Find out your take-home pay after income tax and National Insurance for 2026/27.
Understanding the 2026/27 Tax Bands
Every UK taxpayer gets a Personal Allowance — the first slice of income that is not taxed at all — set at £12,570 for 2026/27. Income above that is split into bands, each taxed at its own rate only on the portion that falls within it:
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Only the income within each band is taxed at that band’s rate — moving into a higher band does not pull your entire salary up to the higher rate, only the portion above the threshold.
What Reduces Your Taxable Income Before Tax Is Applied
Not every pound you earn is taxed. Workplace pension contributions made through salary sacrifice or a net pay arrangement come off your income before tax is calculated, which is why increasing a pension contribution can sometimes move part of your income out of a higher band entirely. This calculator lets you enter a monthly pension contribution to see that effect directly.
Student loan repayments, by contrast, are calculated separately on gross income above your plan’s threshold and do not reduce the income tax bands themselves — they are simply an additional deduction alongside tax and National Insurance. There are currently four active repayment plans (Plan 1, Plan 2, Plan 4 for Scottish students, and Plan 5 for courses starting from 2023), each with its own threshold and 9% repayment rate on income above it, plus a separate Postgraduate Loan plan repaid at 6%.
Age also affects the calculation in one specific way: once someone reaches State Pension age, they stop paying employee National Insurance entirely, even if they continue working — income tax still applies as normal, but the National Insurance line disappears from the deduction total.
Scotland’s Separate Tax Bands
Income tax on non-savings income is devolved to the Scottish Parliament, so residents of Scotland use a different set of bands from the rest of the UK — six bands instead of four, for 2026/27:
| Band | Taxable income | Rate |
|---|---|---|
| Starter rate | Up to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Whether Scottish rates apply depends on where you live, not where your employer is based — someone living in Edinburgh and working for a London-headquartered company still pays Scottish rates. National Insurance is unaffected by this split and uses the same UK-wide rates and thresholds regardless of region.
The Personal Allowance Taper for Higher Earners
Above £100,000 of taxable income, the £12,570 Personal Allowance starts shrinking — it reduces by £1 for every £2 earned over that threshold, and disappears completely once income reaches £125,140. This creates an effective marginal rate of 60% on income between £100,000 and £125,140 for basic-rate taxpayers moving through this band, since each extra pound is taxed at 40% and simultaneously withdraws 50p of tax-free allowance that would otherwise have been available.
This 60% effective rate is one of the more commonly misunderstood parts of the UK tax system, since it does not appear as a distinct rate anywhere — it is the combined effect of the 40% higher rate and the loss of Personal Allowance happening at the same time. Pension contributions are a common way people bring taxable income back under £100,000 to avoid this zone.
Turning the Bands Into a Real Number
On a salary of £70,000 with no pension contributions: the first £12,570 is tax-free, the next £37,700 (up to £50,270) is taxed at 20% — £7,540 — and the remaining £19,730 is taxed at 40% — £7,892. Total income tax comes to £15,432, before National Insurance is added on top.
On a salary of £115,000 with no pension contributions: taxable income exceeds £100,000, so the Personal Allowance tapers down by £1 for every £2 over that threshold — a £15,000 excess reduces the allowance by £7,500, leaving £5,070 tax-free instead of £12,570. The basic and higher rate bands then apply to a larger taxable amount than the headline £12,570 allowance would suggest, which is why two people on quite different salaries above £100,000 can end up with surprisingly similar take-home pay increases for a given pay rise.
On a Scottish salary of £45,000 with no pension contributions: the same £12,570 Personal Allowance applies, but the remaining £32,430 is spread across the starter, basic and intermediate bands rather than the rest-of-UK basic and higher bands — illustrating why a Scottish taxpayer and a rest-of-UK taxpayer on an identical salary can end up with a noticeably different tax bill despite sharing the same Personal Allowance.
Frequently Asked Questions
Why is my tax code not a flat percentage?
Your tax code (such as 1257L) tells your employer how much tax-free Personal Allowance to apply through PAYE, spread evenly across the year. Codes ending in L use the standard allowance; other letters indicate adjustments such as a taper, additional untaxed income, or a previous underpayment being collected.
Does this include National Insurance?
Yes — this calculator shows income tax and employee National Insurance together, since both are typically deducted from the same payslip and most people want to see the combined effect on take-home pay.
How does a pension contribution change the result?
A pension contribution entered here is treated as coming off your income before tax is calculated (a salary sacrifice or net pay arrangement), so it can reduce both your tax band and your effective tax rate, not just your take-home pay.
Why does my result differ from my payslip?
Common reasons include a non-standard tax code, benefits in kind (such as a company car) taxed through your code, a different pay frequency assumption, or an underpayment from a previous tax year being collected. Your P60 or latest payslip will show your actual tax code and any adjustments.
Is this calculator accurate for the self-employed?
This calculator is built around PAYE employment. Self-employed income is taxed through Self Assessment with different National Insurance classes (Class 2 and Class 4) and allowable expenses, so results here should be treated as an approximation only for self-employed users.
What if I have more than one job?
Your Personal Allowance is normally allocated to one job at a time by HMRC, with other income taxed from the first pound. This calculator assumes a single income source, so combined-job scenarios will need to be checked separately.
Do I still pay National Insurance after I retire?
No — once you reach State Pension age, employee National Insurance stops even if you continue working. Income tax continues to apply as normal on any income above your Personal Allowance.
Important Information
This calculator provides an estimate based on standard 2026/27 PAYE rates and thresholds for general information purposes only. It does not constitute tax advice and does not account for every individual circumstance, such as a non-standard tax code, benefits in kind, or multiple income sources. For advice specific to your situation, consult HMRC directly or a qualified accountant. See our Disclaimer for further information.