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UK Income Tax Calculator

Calculate UK income tax and National Insurance contributions using 2026/27 PAYE bands for England, Scotland, and Wales.

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Annual Gross Salary

Tax Year

Pension Contribution

Student Loan Plan

Scottish Taxpayer

Scotland has different income tax rates and bands

Understanding UK Income Tax

The UK operates a Pay As You Earn (PAYE) system where employers deduct income tax and National Insurance contributions directly from your salary before you receive it. Understanding how these deductions work helps you plan your finances and maximise your take-home pay.

Personal Allowance & the £100K Trap

Every UK taxpayer receives a Personal Allowance of £12,570 per year — the amount you can earn tax-free. However, once your income exceeds £100,000, this allowance is reduced by £1 for every £2 you earn above that threshold. This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140, as you lose your Personal Allowance while also paying 40% tax. This is commonly known as the “Personal Allowance trap.”

One popular strategy to mitigate this is to increase pension contributions for income above £100,000, which reduces your adjusted net income and preserves your Personal Allowance.

National Insurance Contributions

Class 1 employee National Insurance is charged at 8% on earnings between £12,570 and £50,270 (the Primary Threshold and Upper Earnings Limit), and 2% on earnings above £50,270. Unlike income tax, NI is calculated on a per-pay-period basis, but annual figures provide a useful approximation.

Scottish Income Tax

Since 2017, the Scottish Parliament has had the power to set its own income tax rates and bands. For 2026/27, Scotland has six tax bands compared to three for the rest of the UK. Scottish rates range from 19% (Starter Rate) to 48% (Top Rate), making higher earners in Scotland pay more income tax than their counterparts in England. Your tax code will start with an “S” if you are a Scottish taxpayer.

Student Loan Repayments

Student loan repayments are deducted automatically through PAYE once your income exceeds the relevant threshold. Plan 1 (pre-2012 England/Wales or Northern Ireland, and Scottish loans before 2023) has a threshold of £26,900. Plan 2 has a threshold of £29,385. Plan 4 has a threshold of £33,795, and Plan 5 has a threshold of £25,000. Student loan Plans 1, 2, 4, and 5 charge 9% on income above the threshold. Postgraduate loans are repaid at 6% above £21,000.

Pension Contributions

Workplace pension contributions made under a salary sacrifice arrangement reduce your gross pay before tax and NI are calculated, providing tax relief at your marginal rate plus NI savings. Personal pension contributions receive tax relief at the basic rate automatically, with higher and additional rate taxpayers claiming extra relief through their tax return.

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How to Use the UK Income Tax Calculator

1
Enter your values
Open the UK Income Tax Calculator and fill in the required input fields with your numbers or selections.
2
Review the calculation
The tool automatically computes the result as you type. Double-check your inputs to ensure accuracy.
3
Interpret your results
Review the calculated output along with any breakdowns, charts, or explanations provided to understand what the numbers mean for your situation.

Sources & Verification

Tax rates verified against official government sources for current published tax years

HMRC Income Tax Rates

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What are the UK income tax bands for 2026/27?

For England and Wales in 2026/27, the personal allowance is 12,570 pounds (0% tax). The basic rate is 20% on income from 12,571 to 50,270 pounds. The higher rate is 40% on income from 50,271 to 125,140 pounds. The additional rate is 45% on income above 125,140 pounds. Scotland has its own bands with starter (19%), basic (20%), intermediate (21%), higher (42%), advanced (45%), and top (48%) rates at different thresholds.

How does National Insurance work for employees?

Employees pay Class 1 National Insurance at 8% on earnings between the primary threshold (12,570 pounds per year) and the upper earnings limit (50,270 pounds per year), plus 2% on earnings above the upper limit. NI contributions fund the state pension, statutory sick pay, and other benefits. For 2026/27, employers pay Class 1 secondary contributions at 15% on earnings above the 5,000 pound annual secondary threshold, which does not appear on your payslip.

What is the personal allowance trap?

The personal allowance of 12,570 pounds is gradually withdrawn for individuals earning over 100,000 pounds. For every 2 pounds earned above 100,000, you lose 1 pound of personal allowance. This creates an effective marginal tax rate of 60% on income between 100,000 and 125,140 pounds, because you pay 40% income tax plus lose 20% of the allowance equivalent. Contributing to a pension can bring your adjusted net income below 100,000 pounds and restore the full allowance.

How is Scottish income tax different?

Scotland sets its own income tax rates and bands for non-savings, non-dividend income. For 2026/27, Scotland has six bands: the starter rate of 19% on the first 3,967 pounds above the personal allowance, the basic rate of 20%, the intermediate rate of 21%, the higher rate of 42%, the advanced rate of 45%, and the top rate of 48% on income above 125,140 pounds. Scottish taxpayers have a tax code beginning with 'S'. National Insurance rates remain the same across the UK.

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Understanding UK Income Tax

Personal Allowance & the £100K Trap

One popular strategy to mitigate this is to increase pension contributions for income above £100,000, which reduces your adjusted net income and preserves your Personal Allowance.