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UK Tax Calculator

Calculate your UK income tax, National Insurance, student loan repayments, pension contributions and take-home pay for 2024/25 & 2025/26. Supports England, Wales, Northern Ireland and Scotland.

Tax Year & Region

Your Income

£
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Student Loan

Select all plans that apply to you

No student loan selected

Pension Contribution

%
Auto-enrolment minimum is 5%

Additional Allowances

How UK PAYE Income Tax Works

Personal Allowance

Everyone in the UK gets a tax-free Personal Allowance of £12,570 per year (2024/25 and 2025/26). This means you don't pay any income tax on the first £12,570 you earn. However, if your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 earned above this threshold. At £125,140, your Personal Allowance is completely eliminated.

Income Tax Bands

UK income tax is progressive — you pay different rates on different portions of your income. For 2024/25:

  • Basic Rate (20%): £12,571 to £50,270
  • Higher Rate (40%): £50,271 to £125,140
  • Additional Rate (45%): Over £125,140

Scotland has its own income tax rates with six bands ranging from 19% to 48%.

National Insurance

National Insurance Contributions (NICs) are separate from income tax. For employees in 2024/25:

  • 0%: On earnings up to £12,570 (Primary Threshold)
  • 8%: On earnings between £12,570 and £50,270
  • 2%: On earnings above £50,270

The 60% Tax Trap

If you earn between £100,000 and £125,140, you face an effective marginal tax rate of 60%. This is because for every £2 you earn above £100,000, you lose £1 of your Personal Allowance. Combined with the 40% higher rate tax, this creates a 60% effective rate. Pension contributions can help reduce your taxable income below this threshold.

Student Loan Repayments

Student loan repayments are deducted from your salary once you earn above the threshold for your plan. The repayment rate is 9% of income above the threshold (6% for Postgraduate loans). These are not technically a tax, but they reduce your take-home pay.

Pension Contributions

Auto-Enrolment: Contributions are taken from your net pay, but you receive basic rate tax relief automatically. Higher/additional rate taxpayers can claim extra relief through self-assessment.

Salary Sacrifice: Your salary is reduced before tax and NI are calculated, meaning you save both income tax and National Insurance on your pension contributions.

Tax-Saving Tips

Maximise Pension Contributions Pension contributions reduce your taxable income. If you're near the £100k threshold, contributing to a pension can restore your Personal Allowance and avoid the 60% tax trap.
Claim Marriage Allowance If your spouse earns less than £12,570, they can transfer £1,260 of their allowance to you, saving up to £252 per year in tax.
Consider Salary Sacrifice Salary sacrifice for pension saves both income tax AND National Insurance, making it more efficient than standard pension contributions.
Use Your ISA Allowance You can save up to £20,000 per year in an ISA. All interest, dividends, and capital gains within an ISA are completely tax-free.
Gift Aid Donations If you're a higher or additional rate taxpayer, you can claim extra tax relief on charitable donations made through Gift Aid.
Working From Home Allowance If your employer requires you to work from home, you may be able to claim tax relief of £6 per week without needing receipts.

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Frequently Asked Questions

Yes, our calculator uses the official HMRC tax rates and thresholds for 2024/25 and 2025/26. All rates are stored in our database and updated when HMRC announces changes. However, this is for guidance only — your actual tax may vary based on individual circumstances, benefits in kind, or other income sources. Always check with HMRC or a qualified accountant for official figures.

Scotland sets its own income tax rates and bands, which differ from the rest of the UK. Scotland has six tax bands (Starter, Basic, Intermediate, Higher, Advanced, and Top) compared to three in the rest of the UK. National Insurance rates are the same across the whole UK. If you live in Scotland, select the Scotland option for accurate calculations.

Plan 1: You started your course before 1 September 2012 (England/Wales) or any time in Northern Ireland or Scotland. Plan 2: You started after 1 September 2012 in England or Wales. Plan 4: You have a Scottish student loan. Plan 5: You started after 1 August 2023 in England. Postgraduate: You have a Postgraduate Master's or Doctoral loan. Check your payslip or Student Loans Company account if unsure.

Salary sacrifice means you agree to a lower salary in exchange for your employer making pension contributions on your behalf. The benefit is that you save both income tax AND National Insurance on the sacrificed amount. With auto-enrolment, you only save income tax. Salary sacrifice is generally more tax-efficient, but it reduces your official salary which could affect mortgage applications, statutory pay, and other salary-based benefits.

HMRC reduces your Personal Allowance by £1 for every £2 you earn above £100,000. This means if you earn £125,140 or more, your Personal Allowance is zero. This creates an effective 60% marginal tax rate between £100,000 and £125,140 (40% income tax + 20% from losing allowance). Many people use pension contributions to bring their adjusted income below £100,000 to avoid this trap.

No, this calculator shows employee deductions only — what comes out of your pay. Employer National Insurance is paid by your employer on top of your salary and doesn't affect your take-home pay directly. If you're self-employed, different NI rules apply (Class 2 and Class 4).

This calculator is designed for employed (PAYE) income. Self-employed individuals pay Class 2 and Class 4 National Insurance instead of Class 1, and the rates and thresholds differ. The income tax calculation would be the same, but the NI figures would not be accurate for self-employed income. We plan to add a self-employed calculator in the future.

No. Your salary and personal details are sent to our server only for the calculation and are not stored, logged, or shared with any third party. The calculation happens in real-time and no data is retained after the response is sent.

Disclaimer: This UK tax calculator provides estimates based on current HMRC PAYE tax rates and thresholds for employed individuals. It does not account for all individual circumstances such as benefits in kind, multiple income sources, self-employment, dividend income, or tax codes other than the standard code. Results are for guidance only and should not be considered as professional tax advice. For official calculations, please visit GOV.UK or consult a qualified tax adviser.