Precision Utility
UK Income Tax
Calculator 2026/27
Personal Allowance
£12,570
Tax Year
2026/27
Work out your UK income tax for the 2026/27 tax year. Enter your annual income and tax code to see exactly how much tax you owe across each band — Personal Allowance, basic rate, higher rate and additional rate. The calculator handles Personal Allowance tapering above £100,000 automatically. Results update instantly using current HMRC thresholds.
Your Income
Total Tax Due
£6,486
Total Tax
£6,486
Effective Rate
14.4%
Personal Allowance
£12,570
Take-Home
£38,514
Total Tax
£6,486
Effective Rate
14.4%
Personal Allowance
£12,570
Take-Home
£38,514
How the income tax calculator works
Enter your total annual income — this is your gross earnings before any tax is deducted. The calculator applies the current HMRC income tax bands for the 2026/27 tax year to work out how much tax you owe on each slice of your income. Whether you are paid weekly, monthly or annually, the result shows your full-year liability based on the figure you enter.
The UK operates a Pay As You Earn (PAYE) system for employees. Your employer deducts income tax and National Insurance from each pay packet before you receive it, so most people never need to file a tax return. This calculator mirrors what PAYE does — it splits your salary across the progressive tax bands and totals the tax charged on each portion.
Your tax code determines your Personal Allowance. The standard code 1257L gives you £12,570 tax-free. If your code is different, the calculator adjusts your allowance accordingly — multiply the number in your tax code by 10 to find your tax-free amount. Codes with a K prefix mean you owe more tax than your allowance covers, often because of benefits in kind.
National Insurance is calculated separately from income tax but is deducted from the same gross pay. Employees pay Class 1 NI at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), then 2% on everything above. The calculator shows both income tax and an indicative NI figure so you can see your total deductions at a glance.
If you earn above £100,000 the calculator automatically tapers your Personal Allowance — it reduces by £1 for every £2 above £100,000, reaching zero at £125,140. Student loan deductions are also factored in when you select a plan: Plan 1 (9% above £24,990), Plan 2 (9% above £27,660), Plan 4 (9% above £31,395) or Plan 5 (9% above £25,000). These repayments are not taxes, but they reduce your take-home pay in the same way.
Income tax calculation examples
Here are three worked examples showing how UK income tax is calculated for the 2026/27 tax year. Each uses the standard Personal Allowance of £12,570 and the current HMRC bands.
Example 1: £30,000 salary
Personal Allowance: £12,570 at 0% = £0
Basic rate: £17,430 (i.e. £30,000 − £12,570) at 20% = £3,486
Total income tax: £3,486
National Insurance: £17,430 at 8% = £1,394
Total deductions: £4,880
Annual take-home pay: £25,120 — roughly £2,093 per month
Effective tax rate: 11.6% • Effective total deduction rate: 16.3%
Example 2: £55,000 salary
Personal Allowance: £12,570 at 0% = £0
Basic rate: £37,700 (i.e. £50,270 − £12,570) at 20% = £7,540
Higher rate: £4,730 (i.e. £55,000 − £50,270) at 40% = £1,892
Total income tax: £9,432
National Insurance: £37,700 at 8% = £3,016 + £4,730 at 2% = £95 → £3,111
Total deductions: £12,543
Annual take-home pay: £42,457 — roughly £3,538 per month
Effective tax rate: 17.1% • Effective total deduction rate: 22.8%
Example 3: £105,000 salary — the 60% tax trap
At £105,000, £5,000 sits above the £100,000 threshold, so your Personal Allowance is reduced by £2,500 (half of £5,000). Your remaining allowance is £10,070.
Personal Allowance: £10,070 at 0% = £0
Basic rate: £37,700 at 20% = £7,540
Higher rate: £57,230 (i.e. £105,000 − £10,070 − £37,700) at 40% = £22,892
Total income tax: £30,432
National Insurance: £37,700 at 8% = £3,016 + £54,730 at 2% = £1,095 → £4,111
Total deductions: £34,543
Annual take-home pay: £70,457 — roughly £5,871 per month
Effective tax rate: 29.0% • Marginal rate on the £100k–£125,140 band: 60%
The “60% trap” arises because every £2 earned above £100,000 removes £1 of Personal Allowance. That lost allowance is now taxed at 40%, adding an extra 20% on top of the 40% higher rate — giving a combined marginal rate of 60%. Many higher earners make pension contributions to bring adjusted net income below £100,000 and reclaim their full allowance.
2026/27 income tax bands
The table below shows the income tax bands and rates for England, Wales and Northern Ireland in the 2026/27 tax year. Scotland sets its own rates — use the Scottish income tax calculator for those.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | £125,141+ | 45% |
Note: The Personal Allowance is reduced by £1 for every £2 of income above £100,000. It reaches zero at £125,140, creating an effective 60% marginal rate in that band. These thresholds have been frozen since 2021/22 and are expected to remain at these levels until at least April 2028.
2026/27 National Insurance rates
National Insurance is charged alongside income tax on employment earnings. The table below shows employee Class 1 NI rates for 2026/27. For a detailed breakdown including employer NI, use the National Insurance calculator.
| Earnings Band | Weekly | Annual | NI Rate |
|---|---|---|---|
| Below Primary Threshold | £0 – £242 | £0 – £12,570 | 0% |
| Primary Threshold to UEL | £242 – £967 | £12,570 – £50,270 | 8% |
| Above Upper Earnings Limit | £967+ | £50,270+ | 2% |
Since April 2025, employer NI has been 15% with a Secondary Threshold of £5,000. Employee rates remain at 8% and 2%.
Combined income tax and National Insurance rates 2026/27
When budgeting, it helps to know the combined marginal rate you pay on each extra pound earned. This table shows the total deduction from income tax and employee NI combined for 2026/27.
| Annual Income | Income Tax | Employee NI | Combined Rate |
|---|---|---|---|
| £0 – £12,570 | 0% | 0% | 0% |
| £12,571 – £50,270 | 20% | 8% | 28% |
| £50,271 – £100,000 | 40% | 2% | 42% |
| £100,001 – £125,140 | 60%* | 2% | 62% |
| £125,141+ | 45% | 2% | 47% |
*The 60% effective rate between £100,000 and £125,140 is caused by the gradual loss of the Personal Allowance. Learn more about the £100k tax trap and strategies to avoid it.
What you need to know about UK income tax
The UK uses a progressive tax system. You don’t pay one flat rate on all your income — each band only applies to the portion of earnings that falls within it. The system is designed so that higher earners contribute proportionally more, but everyone benefits from the same tax-free Personal Allowance at the bottom (provided they earn under £100,000).
PAYE and tax codes. Most employees have tax collected through Pay As You Earn. Your employer uses the tax code issued by HMRC to work out how much to deduct each pay day. The standard code for 2026/27 is 1257L, which corresponds to the £12,570 Personal Allowance. If HMRC adjusts your code — for example because you receive a company car or have underpaid tax from a previous year — the amount deducted from your pay changes automatically. You can check what your code means using our tax code decoder.
Marriage Allowance. If one partner earns less than £12,570 and the other is a basic-rate taxpayer, the lower earner can transfer up to £1,260 of their unused allowance. This can reduce the couple’s combined tax bill by up to £252 a year. The transfer is done through HMRC and your tax code is updated accordingly.
Scottish income tax. If you live in Scotland, you pay Scottish income tax rates set by the Scottish Parliament. These include a starter rate (19%), an intermediate rate (21%) and a top rate (48%) that do not exist in the rest of the UK. Scottish taxpayers are identified by an S prefix in their tax code. For an accurate calculation, use our Scottish income tax calculator.
Pension tax relief. Contributions to a workplace or personal pension receive tax relief at your marginal rate. If you pay into a relief-at-source pension, 20% tax relief is added automatically and higher-rate or additional-rate taxpayers can claim the rest via Self Assessment. With a net-pay scheme, contributions are deducted before tax is calculated, giving full relief immediately. Pension contributions also reduce your adjusted net income, which can restore tapered Personal Allowance for those earning over £100,000.
For a complete picture of your deductions, use the salary calculator (which includes NI, pension and student loans) or the take-home pay calculator for a quick net-pay figure. If you’re self-employed, try the self-employed tax calculator to account for Class 2 and Class 4 NI. You can also check your National Insurance or see how a one-off payment is taxed with the bonus tax calculator. For the latest official rates, see the HMRC income tax rates page on GOV.UK.
Frequently asked questions
How much income tax will I pay in 2026/27?
Your income tax depends on how much you earn above the Personal Allowance of £12,570. You pay 20% on income between £12,571 and £50,270 (basic rate), 40% between £50,271 and £125,140 (higher rate), and 45% on anything above £125,140 (additional rate).
What is the Personal Allowance for 2026/27?
The Personal Allowance for 2026/27 is £12,570. This is the amount you can earn before paying any income tax. It reduces by £1 for every £2 earned above £100,000, reaching zero at £125,140.
What happens to my Personal Allowance if I earn over £100,000?
Once your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above that threshold. This means your allowance drops to zero at £125,140, creating an effective marginal rate of 60% on income between £100,000 and £125,140.
What does my tax code mean?
The most common tax code is 1257L, which gives you the standard Personal Allowance of £12,570. The number represents your tax-free amount (multiply by 10), and the letter indicates your situation — L means you’re entitled to the standard allowance.
Are Scottish income tax rates different?
Yes. Scotland sets its own income tax rates and bands, which differ from the rest of the UK. Scottish taxpayers have a tax code beginning with S. This calculator uses the standard England, Wales and Northern Ireland rates. Use our Scottish income tax calculator for Scottish rates.
How is income tax different from National Insurance?
Income tax is charged on your taxable income above the Personal Allowance. National Insurance is a separate deduction on your earnings — employees pay 8% on earnings between £12,570 and £50,270, and 2% above that. Use our salary calculator to see both deductions together, or check your NI specifically with the National Insurance calculator.
What is the 60% tax trap?
The 60% tax trap affects earners between £100,000 and £125,140. In this band, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means you lose £1 of allowance (which was shielding income taxed at 40%) while also paying 40% on the new income — giving an effective marginal rate of 60%. Many higher earners use pension contributions to bring their adjusted net income below £100,000 and avoid this trap entirely.
Do I pay tax on my pension contributions?
No — pension contributions receive tax relief. If your employer uses a relief-at-source scheme, contributions are taken from your net pay and the pension provider claims back basic rate tax (20%) from HMRC. Higher and additional rate taxpayers can claim extra relief through their Self Assessment tax return. With a net-pay arrangement, contributions are deducted before tax is calculated, so you receive full relief automatically. Either way, pension contributions reduce your tax bill.
What tax code should I be on?
Most employees in England, Wales and Northern Ireland should be on tax code 1257L, which gives the standard Personal Allowance of £12,570. If you have additional income, benefits in kind, or owe tax from a previous year, HMRC may adjust your code. Scottish taxpayers will have a code starting with S (e.g. S1257L). You can check exactly what your code means and whether it is correct using our tax code decoder.
Related calculators
Salary Calculator
Full take-home pay with tax, NI, pension and student loan
Take-Home Pay Calculator
Quick net pay figure after all deductions
National Insurance Calculator
Employee and employer NI contributions for 2026/27
Self-Employed Tax Calculator
Income tax and Class 2/4 NI for sole traders
Scottish Income Tax Calculator
Scottish rates and bands including starter and intermediate
Tax Code Decoder
Find out what your HMRC tax code means and if it is correct