TheCalcHubthecalchub.org
📊

UK Income Tax Calculator

Calculate your 2026/27 UK income tax, National Insurance, and take-home pay. PAYE bands, personal allowance, and NI rates. Free, instant, no signup.

Salary
Currency

UK income tax for the 2026/27 tax year (6 April 2026 – 5 April 2027) uses a progressive system with bands: Personal Allowance (0%), Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%). National Insurance is charged on top. Tax bands remain frozen at 2025/26 levels — meaning more earners are pulled into the 40% band each year through fiscal drag. This calculator shows your combined Income Tax and NI deductions and your final take-home pay.

Tips for UK Income Tax

1

Personal Allowance: first £12,570 is tax-free (reduces by £1 for every £2 earned over £100,000)

2

National Insurance adds 8% on income between £12,570 and £50,270, then 2% above that

3

Your effective rate includes both Income Tax and NI — it's higher than the headline bracket rate

4

For 2026/27, tax bands remain frozen — more earners cross into the 40% band each year through fiscal drag

5

The 60% effective tax trap: between £100,000 and £125,140 you lose Personal Allowance, creating a 60% marginal rate

6

Marriage Allowance lets a non-taxpayer transfer £1,260 of Personal Allowance to a basic-rate spouse, saving up to £252/year

7

Salary sacrifice for pension contributions reduces both Income Tax and NI — one of the most tax-efficient strategies

8

Scottish taxpayers use different bands (19%, 20%, 21%, 42%, 47%) — this calculator assumes rest-of-UK rates

9

ISA contributions don't reduce taxable income, but the £20,000/year limit shields gains and dividends entirely

10

Dividend income has separate rates (8.75% / 33.75% / 39.35%) with a £500 annual allowance for 2026/27

Frequently Asked Questions

What is the UK personal allowance for 2026/27?
£12,570 per year — this amount is completely tax-free. However, it reduces by £1 for every £2 earned over £100,000, meaning it reaches zero at £125,140. The Personal Allowance has been frozen at this level since 2021/22.
When does the 40% tax band start in 2026/27?
The Higher Rate (40%) starts at taxable income above £50,270 — the same threshold as 2025/26. Combined with the £12,570 Personal Allowance, you start paying 40% on earnings above £50,270 in total income.
How much tax do I pay on a £50,000 salary?
On £50,000 for 2026/27: Income Tax is £7,486 (20% on £37,430), and National Insurance is approximately £3,016 (8% on income between £12,570 and £50,270). Total deductions ≈ £10,502, leaving take-home pay of about £39,498.
How much tax do I pay on a £70,000 salary?
On £70,000: Income Tax is approximately £15,432, and NI is approximately £3,410. Total ≈ £18,842, leaving take-home around £51,158. You pay 40% on income above £50,270, but only 2% NI on that portion.
What's the difference between Income Tax and National Insurance?
Income Tax is paid on most income (salary, self-employment, rental, dividends) and funds general government spending. National Insurance is separate and funds the State Pension and NHS — it applies to earned income only (not pensions or rental income). They use different thresholds and rates.
Are tax bands changing in 2026/27?
No — the Personal Allowance (£12,570), Higher Rate threshold (£50,270), and Additional Rate threshold (£125,140) remain frozen, as they have been since 2021. This creates fiscal drag: as wages rise with inflation, more income is pulled into higher tax bands.
How do I calculate my take-home pay?
Take-home = Gross Salary − Income Tax − National Insurance − Pension contributions − Student Loan repayments. This calculator shows tax + NI; subtract those plus any pension/student loan deductions from gross pay for your net monthly amount.
Do I pay tax on my entire salary or just income above £12,570?
Only above £12,570. The first £12,570 is your Personal Allowance — completely tax-free. You then pay 20% on the next £37,700 (up to £50,270), 40% on income between £50,270 and £125,140, and 45% above that.
What is fiscal drag and how does it affect me?
Fiscal drag happens when tax thresholds stay frozen while wages rise with inflation. Even if you get a pay raise, you may end up paying a higher effective tax rate. Since 2021, frozen UK thresholds have quietly increased the tax burden — the OBR estimates millions more taxpayers will be in the 40% band by 2028.
Are bonuses taxed differently from salary?
No — bonuses are taxed at your marginal rate (the rate on your highest income band). However, bonuses can temporarily push you into a higher band for that month, causing PAYE to over-deduct. HMRC reconciles this at year-end so your annual tax is correct.
Last updated: May 2026

Data sources: IRS (US), HMRC (UK), Income Tax Dept (India) tax slabs

For informational purposes only. Not financial, medical, or legal advice. Always consult a qualified professional for decisions affecting your finances or health.

Report an error

🧭

What to Calculate Next

💼Salary Calculator

See your full salary breakdown

Calculate now
🎯Savings Goal Calculator

Plan tax-saving investments

Calculate now
🏖️Retirement Calculator

Estimate post-retirement tax savings

Calculate now

More Income Tax Calculators

📊

Income Tax Calculator India

Calculate your income tax in India for FY 2025-26. Compare new regime vs old regime. See tax slabs, effective rate, and savings tips.

📊

US Federal Income Tax Calculator

Calculate your US federal income tax for 2025. See your tax bracket, effective rate, and take-home pay after federal tax.

Related Calculators

🏠

EMI

📈

SIP

💰

Compound Interest