UK Tax Calculator 2025/26

Calculate your income tax, National Insurance, and take-home pay

Last updated: April 2025 · 2025/26 tax rates

Income Details

£

Check your payslip or P60. Standard is 1257L.

Scottish Taxpayer?

Live in Scotland on 6 April

Blind Person's Allowance

Pension

Deducted before tax but after NI calculation

Student Loans

Postgraduate Loan?

Master's or PhD loan

Yearly
£37,020
Monthly
£3,085
Fortnightly
£1,424
Weekly
£712
Effective Tax Rate
21.0%
Total tax + NI as % of gross
Marginal Rate
20%
Tax on next £1 earned

Where You Fall in the Tax Brackets

Personal Allowance: 0%
Basic Rate: 20%
Higher Rate: 40%
Additional Rate: 45%
£0£75,000£150,000
Personal Allowance (0%)
Basic Rate (20%)
Higher Rate (40%)

Your taxable income of £50,000 puts you in the Basic Rate band.

Income Tax Breakdown

Personal Allowance£12,570 @ 0%
Basic Rate(£37,430 @ 20%)
£7,486.00
Total Income Tax£7,486.00

National Insurance

Below Primary Threshold£0 - £12,570 @ 0%
£12,570 - £50,270£2,994.40
Total National Insurance£2,994.40

Annual Summary

Gross Salary£50,000.00
Income Tax-£7,486.00
National Insurance-£2,994.40
Pension Contribution-£2,500.00
Total Deductions£12,980.40
Net Take-Home Pay£37,019.60

Understanding UK Tax

Everything you need to know about income tax and National Insurance

Your tax code tells your employer how much tax-free income you get. It's shown on your payslip and P60.

Common Tax Codes

  • 1257L - Standard code (£12,570 allowance)
  • 1257L W1/M1 - Emergency code, taxed on current period only
  • BR - All income taxed at 20% (second job, no allowance)
  • D0 - All income taxed at 40% (second job)
  • D1 - All income taxed at 45%
  • NT - No tax deducted
  • S1257L - Scottish taxpayer, standard allowance

Code Letters

  • L - Standard personal allowance
  • M - Marriage Allowance received
  • N - Marriage Allowance transferred
  • T - Other calculations needed
  • K - You owe tax from previous year (added to income)
  • S - Scottish taxpayer
  • C - Welsh taxpayer

Wrong tax code? Check your code on your payslip. If it's wrong, contact HMRC. A wrong code means you could be overpaying or underpaying tax.

Frequently Asked Questions

What is National Insurance and how is it calculated?

National Insurance (NI) is a UK tax on earnings that funds the State Pension, NHS, and benefits. Employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270 for the 2025/26 tax year. Your employer also pays 15% on top of your salary. NI is separate from income tax and is calculated on a per-pay-period basis.

How do Scottish income tax rates differ from the rest of the UK?

Scotland has its own income tax bands set by the Scottish Parliament. For 2025/26, Scotland has seven bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%). The rest of the UK uses three bands: Basic (20%), Higher (40%), and Additional (45%). Scottish taxpayers have a tax code starting with "S". National Insurance rates are the same UK-wide.

What is a tax code and how does it affect my pay?

A tax code tells your employer how much tax-free income you get before tax is deducted. The most common code is 1257L, meaning you get £12,570 tax-free (the Personal Allowance). The number is multiplied by 10 to give your allowance. Letters indicate your situation: L is standard, S means Scottish rates, BR means all income is taxed at basic rate. HMRC sets your code based on your circumstances and notifies your employer.

How do student loan deductions work?

Student loan repayments are deducted automatically through PAYE once you earn above the threshold for your plan. Plan 1 (pre-2012 England/Wales, all Scotland/NI): 9% above £24,990. Plan 2 (post-2012 England/Wales): 9% above £27,295. Plan 4 (post-2012 Scotland): 9% above £31,395. Plan 5 (post-2023): 9% above £25,000. Postgraduate Loan: 6% above £21,000. You can have both an undergraduate and postgraduate loan deducted simultaneously.

What happens to the Personal Allowance for high earners?

The standard Personal Allowance is £12,570. However, for every £2 you earn above £100,000, your Personal Allowance is reduced by £1. This means it is completely eliminated at £125,140. This creates an effective 60% marginal tax rate between £100,000 and £125,140 (40% income tax + 20% from losing allowance). Understanding this is important for tax planning around the £100k threshold.

How does pension contribution affect my tax?

Pension contributions reduce your taxable income, which can lower your tax bill. With salary sacrifice, your employer reduces your gross pay before tax and NI are calculated, saving both income tax and National Insurance. With relief at source, contributions come from your net pay and the pension provider claims back basic rate tax (20%). Higher and additional rate taxpayers can claim further relief through their self-assessment tax return.

Tax rates and thresholds for 2025/26 tax year (6 April 2025 - 5 April 2026)