How UK Income Tax bands work
Most people can earn £12,570 a year before paying any Income Tax. Above that, income in England and Northern Ireland is taxed at 20% (basic rate) on the next £37,700, 40% (higher rate) up to £125,140, and 45% (additional rate) above that.
Each rate applies only to the income inside its band. HMRC sets out the current figures on GOV.UK's Income Tax rates page.
What this calculator leaves out
- National Insurance: charged separately on earnings and not included here.
- Allowance taper: the Personal Allowance falls by £1 for every £2 of income over £100,000. Reduce the standard deduction yourself if this applies to you.
- Scotland: Scottish taxpayers have different bands. Edit the bands to match them.
- Savings and dividends: taxed under their own allowances and rates.
If you are self-employed, your taxable income is your trading profit. Our income statement generator helps you work it out.
How to use the calculator
Enter your gross annual income. The Personal Allowance is applied automatically; add any other deductions, such as pension contributions paid gross, on separate lines.
The results show taxable income, total Income Tax, effective and marginal rates and income after tax, with a band-by-band breakdown. Export the summary to Excel for your records.