UK Income Tax Calculator 2026/27

How It Works

UK income tax is charged in slices, not at one flat rate. First, your Personal Allowance — £12,570 in 2026/27 — is taken off your income tax-free. What is left is your taxable income, and it is cut into bands, with each band’s rate applying only to the slice inside that band. In England, Wales and Northern Ireland there are three rates: 20% (basic rate) on the first £37,700 of taxable income, 40% (higher rate) up to a total income of £125,140, and 45% (additional rate) above £125,140. Moving into a higher band never makes you worse off, because the higher rate touches only the slice above the threshold.

Scotland sets its own income tax bands for non-savings, non-dividend income, with six rates instead of three. For 2026/27, with the standard Personal Allowance: starter 19% on gross income from £12,571 to £16,537, basic 20% to £29,526, intermediate 21% to £43,662, higher 42% to £75,000, advanced 45% to £125,140 and top 48% above £125,140. The Personal Allowance and its taper are the same as in the rest of the UK, and savings and dividend income is taxed at rest-of-UK rates even for Scottish taxpayers. The 19% starter rate makes Scotland slightly cheaper for lower earners, but the 42% higher rate starts at £43,663 — well below the £50,270 higher-rate threshold in the rest of the UK — so higher earners pay noticeably more in Scotland.

The Personal Allowance taper is the part most people miss. Once your income passes £100,000, your Personal Allowance shrinks by £1 for every £2 you earn above £100,000, and it reaches zero at £125,140. That creates a hidden 60% marginal rate in the rest of the UK between £100,000 and £125,140: every extra £1 is taxed at 40%, and it also pulls 50p of previously tax-free allowance into the 40% band. In Scotland the same taper applies on top of the 45% advanced rate, giving an effective marginal rate of 67.5% in that range. This calculator applies the taper automatically and shows your marginal rate, so you can see the true cost of the next pound you earn.

Two rates in the results are worth understanding. Your marginal rate is the tax on your next £1 of income — the rate that decides whether a pay rise, overtime or extra freelance work is worth it. Your effective rate is your total income tax divided by your total income — the average rate you actually pay, which is always lower than your marginal rate because the lower bands and the Personal Allowance pull the average down. On a £60,000 income in the rest of the UK, for example, the marginal rate is 40% but the effective rate is only 19.1%.

Worked example (rest of UK): an annual income of £60,000. The Personal Allowance is the full £12,570, so taxable income is £47,430. The first £37,700 of taxable income is charged at 20%, giving £7,540.00, and the remaining £9,730 at 40%, giving £3,892.00. Total income tax is £11,432.00, the effective rate is 19.1% and the marginal rate is 40%.

Worked example (Scotland): the same £60,000 income for a Scottish taxpayer. Taxable income is again £47,430, but the Scottish bands split it four ways: 19% × £3,967 = £753.73 (starter), 20% × £12,989 = £2,597.80 (basic), 21% × £14,136 = £2,968.56 (intermediate) and 42% × £16,338 = £6,861.96 (higher) — £13,182.05 in total, £1,750.05 more than the same income in the rest of the UK. The effective rate is 22.0% and the marginal rate is 42%.

Worked example (the taper): an income of £110,000 in the rest of the UK. The Personal Allowance is reduced by (£110,000 − £100,000) ÷ 2 = £5,000, so it is £7,570 and taxable income is £102,430. Tax is 20% × £37,700 = £7,540.00 plus 40% × £64,730 = £25,892.00, giving £33,432.00. The marginal rate on the next pound is 60% because of the taper.

Assumptions

• Standard Personal Allowance only. The calculator assumes tax code 1257L (S1257L in Scotland) — a £12,570 allowance, tapering above £100,000. Adjusted tax codes, the Marriage Allowance and the Blind Person’s Allowance are not modelled.
• Non-savings, non-dividend income only. All income is taxed at the main rates. Savings income and dividend income, which have their own rates and allowances, are not modelled.
• Income tax only. Employee National Insurance, pension contributions, student loan repayments and salary sacrifice are not included. For take-home pay after National Insurance, use the UK salary calculator.
• Full tax year. The calculation assumes the income applies for the whole 2026/27 tax year (6 April 2026 to 5 April 2027) with no mid-year changes.

Sources: GOV.UK — Income Tax rates and Personal Allowances; mygov.scot — Scottish income tax, current rates (6 April 2026 – 5 April 2027); Scottish Government — Scottish Income Tax 2026 to 2027 technical factsheet. Figures checked 13 November 2026.

How to Use This Calculator

Enter your total annual income before tax — salary, self-employed profit, pension income or rent, or a combination of them — and choose your region. The calculator works out your income tax straight away, and results update as you type. The headline figure is your total income tax for 2026/27, and the breakdown shows your Personal Allowance after any taper, your taxable income, the tax due in each band, and your marginal and effective rates.

Use the region menu to compare. The same income can give a very different tax bill north and south of the border: at £30,000 a Scottish taxpayer pays £34.93 a year less, but at £80,000 the Scottish taxpayer pays £2,300.05 a year more. Your main home decides which rates apply, so the comparison matters if you are weighing a move.

Use the marginal rate to judge extra income. A pay rise, a bonus or a freelance job is taxed at your marginal rate, not your effective rate — so if you earn £60,000 in the rest of the UK, an extra £1,000 is worth £600 after income tax, and if you earn £110,000, an extra £1,000 is worth only £400 because of the 60% taper trap. Try your income just below and just above £50,270, £100,000 and £125,140 to see how each threshold changes the answer.

Tips and Practical Advice

Check your tax code first. The calculator assumes the standard Personal Allowance of £12,570 (tax code 1257L, or S1257L in Scotland). If your payslip shows a different code — because you have more than one job, a company car, or an adjusted allowance — your real tax will differ.

Know the £100,000 trap. Between £100,000 and £125,140 the Personal Allowance taper creates a 60% marginal rate (67.5% in Scotland), so a pay rise in that range can be worth far less than it looks. Pension contributions and Gift Aid donations reduce your adjusted net income, which can restore some or all of your Personal Allowance.

Remember that income tax is not the whole deduction. Employees also pay National Insurance — 8% on earnings between £12,570 and £50,270 and 2% above — plus any pension contributions and student loan repayments. Your take-home pay will be lower than the after-tax figure shown here, so use the salary calculator for the figure that actually reaches your bank account.

If you are self-employed, budget for the tax as you earn. Income tax on self-employed profit is paid through Self Assessment, usually in two payments on account plus a balancing payment, and the bill can come as a shock if nothing has been set aside. A rough rule is to put aside your effective rate plus a little extra, in a separate account.

Frequently Asked Questions