Income tax calculator — United Kingdom
Estimate 2026–27 UK income tax for your tax region and Personal Allowance position, with every step shown.
Gross annual income from employment. The Personal Allowance is applied automatically — including the taper above £100,000.
- Basic rate (20%)
- £5,486
- Total tax
- £5,486
England, Wales & Northern Ireland · Personal Allowance £12,570 → taxable income £27,430
Average tax rate 13.7% · marginal rates apply only to income in each bracket. Before National Insurance, pension contributions and student loans.
What your tax region changes
England, Wales and Northern Ireland use the 20%, 40% and 45% bands. Scotland uses six bands from 19% to 48%, so the same taxable income can produce a different result.
Choose Scotland if you are a Scottish taxpayer. Scottish rates apply to wages, pensions and most other non-savings, non-dividend income; savings interest and dividends use UK-wide rules.
What Personal Allowance changes
- Standard allowance removes up to £12,570 before the tax bands apply.
- Above £100,000 of adjusted net income, the allowance falls by £1 for every £2 and reaches zero at £125,140.
- Choose No Personal Allowance only when you know no allowance applies; the full income entered will then be taxable.
The taper is legally based on adjusted net income. Pension contributions, Gift Aid and other adjustments can make that different from the gross employment income entered here.
Check the GOV.UK rates and allowance guidance ↗Included
- Personal Allowance of £12,570, tapered £1 per £2 above £100,000
- England, Wales and Northern Ireland 20%, 40% and 45% bands
- Scottish starter, basic, intermediate, higher, advanced and top bands
- Ordinary non-savings, non-dividend income
Not included
- National Insurance contributions
- Dividend and savings income (different 2026–27 rates)
- Pension relief, salary sacrifice and Gift Aid adjustments
- Student loan repayments and the marriage/blind person's allowances
What this means
UK income tax starts with the Personal Allowance: the first £12,570 of income is tax-free. Above that, income fills three bands in order — 20% on the first £37,700 of taxable income, 40% up to £125,140, and 45% beyond. Each rate applies only to the slice inside its band, so crossing a threshold never re-taxes what's below it.
The sting in the system is the £100,000 taper: above that income, the Personal Allowance shrinks by £1 for every £2 earned, disappearing entirely at £125,140. Losing tax-free allowance while paying 40% makes each pound in that window effectively taxed at 60% — the well-known “60% trap” this calculator makes visible.
Choose England, Wales & Northern Ireland for the 20/40/45% bands, or Scotland for its six-band 19% to 48% scale. The Scottish choice applies only to non-savings, non-dividend income. National Insurance, dividends and savings remain separate and are not blended into this estimate.
Formula & worked example
personal allowance = £12,570 (−£1 per £2 of income over £100,000; £0 at £125,140), unless switched off taxable income = income − selected allowance England/Wales/NI: 20% to £37,700 taxable; 40% to £125,140; 45% above. Scotland: 19% to £3,967 taxable; 20% to £16,956; 21% to £31,092; 42% to £62,430; 45% to £125,140; 48% above.
Annual income £60,000 — England, 2026–27
- Personal Allowance
- − £12,570
- Taxable income
- £47,430
- Basic rate: 20% × £37,700
- £7,540
- Higher rate: 40% × (£47,430 − £37,700)
- £3,892
Total income tax £11,432 — you keep £48,568, an average rate of 19.1%.
How this calculation works
The calculation follows the formulas, definitions and assumptions explained on this page. The references below support the method and any stated boundaries.
Official sources
- GOV.UK — Income Tax rates and allowances — 2026–27 Personal Allowance, rest-of-UK and Scottish bands
- Scottish Government — 2026–27 Income Tax rates and bands — Official Scottish starter, basic, intermediate, higher, advanced and top bands
- Finance Act 2026, Part 1 — Statutory 20/40/45% rates for 2026–27 and threshold freeze
- HMRC — Budget 2025 OOTLAR — Freeze of allowance and thresholds; dividend-rate changes
- PwC Tax Summaries — United Kingdom — Independent cross-check of the 2026–27 rest-of-UK bands