UK Income Tax calculator (2026/27)

How Income Tax bands work

Income Tax is charged in slices. Income inside the Personal Allowance is tax free; the next slice is taxed at the basic rate; further slices at the higher and additional rates. Only the money inside each slice is taxed at that rate.

The Personal Allowance taper

Above £100,000 of adjusted net income, the Personal Allowance falls by £1 for every £2 of income. Between £100,000 and roughly £125,140 this creates an effective 60% marginal rate. Pension contributions and Gift Aid reduce adjusted net income, which is why they are often discussed alongside the taper.

Income Tax vs National Insurance

These are separate charges with separate thresholds. Income Tax is cumulative across the tax year and applies to most income types; employee National Insurance applies to earnings from employment and is calculated per pay period.

Scotland is different

Scottish taxpayers pay Scottish Income Tax rates on non-savings, non-dividend income. The bands and rates differ from the rest of the UK, so the same salary produces a different tax bill.

Methodology, assumptions and limitations

• 2026/27 UK rates, bands and thresholds, verified against primary sources on 21 August 2026.
• Pay is treated as even across all 12 months (cumulative PAYE), so a mid-year pay change will not match exactly.
• Class 1 employee National Insurance only — no Class 1A, Class 2 or Class 4 self-employment NI.
• Scotland is detected from an "S" prefix on the tax code; other UK nations use the rest-of-UK bands.

• Results are estimates for comparison and education, not a payroll calculation or a tax return.
• Benefits in kind, company cars, taxable expenses and P11D adjustments are not modelled.
• Week 1 / month 1 and emergency tax code operation is not modelled — codes are treated cumulatively.
• This is not regulated financial advice and does not take your personal circumstances into account.

• GOV.UK — Income Tax rates and Personal Allowances
• gov.scot — Scottish Income Tax rates and bands

UK Finance Planning provides calculation and planning tools for education and comparison. It is not a financial adviser, is not authorised by the Financial Conduct Authority, and is unconnected to any similarly named advice firm. All results are estimates.

Related calculators

• Scottish Income Tax calculator — Scottish bands compared against the rest of the UK.
• Salary calculator — Gross to net pay with tax, NI and pension deductions.
• Take-home pay calculator — What actually lands in your bank account each month.
• Salary sacrifice calculator — Compare sacrifice, net pay and relief at source pension methods.