Calculators
Income tax calculator
Your take-home pay for 2026/27, the real rate you pay on your next pound, and what a pension contribution would change.
What this means
How it works
How your pay is taxed in 2026/27
Most people can earn £12,570 before paying income tax. Above that, in England, Wales and Northern Ireland, you pay 20% up to £50,270, 40% up to £125,140 and 45% beyond. National Insurance is charged separately at 8% between £12,570 and £50,270 and 2% above.
| Band (rest of UK) | 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% |
Scotland has its own bands: 19% to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140 and 48% above.
The rate that matters is the marginal one
Your average tax rate is rarely the interesting number. What changes decisions is the rate on the next pound: a pay rise, a bonus, or a pound you choose to put into a pension instead. Three points on the scale are worth knowing.
- £50,270. Higher-rate tax begins, and pension contributions start to attract 40% relief.
- £60,000 to £80,000. Households receiving Child Benefit repay it progressively through the High Income Child Benefit Charge.
- £100,000 to £125,140. The personal allowance is withdrawn, producing an effective rate of 60% before National Insurance. Crossing £100,000 can also end entitlement to funded childcare hours and Tax-Free Childcare.
What an adviser adds
A calculator can show you the trap. An adviser looks at the whole year: when bonuses and share awards land, how much pension allowance you have left including the last three years, whether your partner has unused allowances, and where ISAs and other investments fit. For people with income above £200,000 the pension annual allowance itself can shrink, which changes the sums again.
Questions
Income tax questions
What is the £100,000 tax trap?
Once your income passes £100,000 you lose £1 of your £12,570 personal allowance for every £2 above it, until it has gone completely at £125,140. In that band each extra pound is taxed at 40% and also drags another 50p into tax, giving an effective income tax rate of 60%, or 62% once National Insurance is added. In Scotland the equivalent figure is higher still.
How do pension contributions help?
The test is based on your adjusted net income, which is reduced by pension contributions. Paying enough into a pension to bring that figure back to £100,000 restores the whole personal allowance. In the trap band, £10,000 added to a pension by salary sacrifice typically reduces take-home pay by about £3,800.
Is salary sacrifice better than paying in myself?
With salary sacrifice you give up part of your salary and your employer pays it into your pension instead, so you save National Insurance as well as income tax. Paying in personally gives the same income tax relief but no National Insurance saving. Not every employer offers salary sacrifice, and it can affect things like mortgage applications and life cover that are based on salary. From April 2029 the National Insurance saving on salary sacrifice is due to be limited to the first £2,000 a year.
Are the income tax thresholds going up?
No. The personal allowance and the higher-rate threshold are frozen until April 2031, so as pay rises more of it falls into higher bands each year. This is often called fiscal drag.
Why is tax different in Scotland?
Scotland sets its own rates and bands for earnings, pensions and rental income. For 2026/27 there are six bands running from 19% to 48%. National Insurance, savings and dividend tax are the same across the UK.
What does the calculator leave out?
It covers salary taxed through PAYE. It does not include bonuses paid separately, benefits in kind such as a company car, dividends, savings interest, rental income, student loan repayments or the High Income Child Benefit Charge. An adviser or accountant can bring those together.
Paying more tax than you need to?
Book a complimentary video consultation with an FCA-regulated adviser who works with higher earners, and look at pensions, allowances and timing together. No obligation.