UK Tax Calculator
Calculate income tax, NI, student loans, pension, self-employment tax, dividends and rental income for 2024/25 & 2025/26. Supports England, Wales, Northern Ireland and Scotland.
Tax Year & Region
Employment Type
Select how you earn your income
Employment Income (PAYE)
Student Loan
Click to select all plans that apply to you — you can select multiple
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Pension Contribution
Additional Allowances
These increase your tax-free Personal Allowance and reduce your tax bill
How UK Tax Works
Personal Allowance (2024/25 & 2025/26)
Everyone in the UK gets a tax-free Personal Allowance of £12,570 per year. This is frozen until April 2028. If your income exceeds £100,000, your Personal Allowance reduces by £1 for every £2 earned above this threshold. At £125,140 it is completely eliminated.
- Marriage Allowance: Transfer £1,260 of unused allowance from a non-taxpaying spouse — saving up to £252/year
- Blind Person's Allowance: Additional £3,130 (2025/26) for registered blind or severely sight-impaired individuals
Income Tax Bands — England, Wales & NI (2025/26)
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Income Tax Bands — Scotland (2025/26)
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £14,876 | 19% |
| Basic Rate | £14,877 – £26,561 | 20% |
| Intermediate Rate | £26,562 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
NI rates are identical across the whole UK — only income tax differs in Scotland.
Employee National Insurance — Class 1 (2025/26)
| Band | Earnings | Rate |
|---|---|---|
| Below Primary Threshold | Up to £12,570/year | 0% |
| Main Rate | £12,570 – £50,270/year | 8% |
| Upper Rate | Above £50,270/year | 2% |
Employer NI (Class 1 Secondary) is 15% above £5,000/year from April 2025 — this is paid by your employer and not shown in your take-home calculation.
Self-Employed NI — What Changed from April 2024
| Annual Profit | Class 2 Status | Cost | NI Credits |
|---|---|---|---|
| £12,570+ Above Lower Profits Limit | Abolished | £0 | Automatic |
| £6,725 – £12,569 SPT to LPL | Treated as paid | £0 | Automatic |
| Below £6,725 Below Small Profits Threshold | Voluntary only | £3.50/week (opt-in) | Not automatic |
Class 4 NI — Still Applies (2024/25 & 2025/26)
| Band | Profit | Rate |
|---|---|---|
| Below LPL | Up to £12,570 | 0% |
| Main Rate | £12,570 – £50,270 | 6% |
| Upper Rate | Above £50,270 | 2% |
Student Loan Repayment Thresholds (2025/26)
| Plan | Annual Threshold | Rate | Who it applies to |
|---|---|---|---|
| Plan 1 | £26,065 | 9% | Started before Sept 2012 (England/Wales) or before Sept 1998 (Scotland/NI) |
| Plan 2 | £28,470 | 9% | Started after Sept 2012 in England/Wales |
| Plan 4 | £32,745 | 9% | Scottish students after Sept 1998 |
| Plan 5 | £25,000 | 9% | New students from August 2023 (England) |
| Postgraduate | £21,000 | 6% | Postgraduate Master's and Doctoral loans |
Repayments are 9% (or 6% for postgraduate) of income above the threshold — not of total income. You can hold multiple plans simultaneously.
Dividend Tax (2024/25 & 2025/26)
| Band | Rate | Notes |
|---|---|---|
| Dividend Allowance | 0% | First £500 tax-free |
| Basic Rate | 8.75% | Dividends in basic rate band |
| Higher Rate | 33.75% | Dividends in higher rate band |
| Additional Rate | 39.35% | Dividends above £125,140 |
Dividends are not subject to NI. They sit on top of other income when determining which band applies.
Savings Interest — Personal Savings Allowance (2025/26)
| Taxpayer Band | PSA | Starting Rate (0%) |
|---|---|---|
| Basic Rate | £1,000 | Up to £5,000 if non-savings income < £17,570 |
| Higher Rate | £500 | Not available |
| Additional Rate | £0 | Not available |
The 60% Tax Trap (£100,000 – £125,140)
Earning between £100,000 and £125,140 creates an effective 60% marginal rate because your Personal Allowance tapers at £1 for every £2 earned above £100,000. This means:
- 40% income tax on the extra earnings
- Plus an effective 20% on the lost Personal Allowance (£1 of allowance lost = £0.40 extra tax on £2 earned = 20%)
- Solution: Pension contributions that bring adjusted net income below £100,000 restore your full allowance
Tax-Saving Tips for 2025/26
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Frequently Asked Questions
Yes. Our calculator uses official HMRC rates and thresholds for 2024/25 and 2025/26, stored in our database and admin-verified. Key figures: Personal Allowance £12,570, Basic Rate threshold £50,270, Higher Rate threshold £125,140. Results are estimates — your actual tax may vary based on your tax code, benefits in kind, or other HMRC adjustments. Always verify with HMRC or a qualified accountant.
Self-employed individuals pay income tax on profits using the same bands as employees. For NI from April 2024:
- Class 2 NI abolished — no flat weekly charge
- Class 4 NI: 6% on profits £12,570–£50,270 and 2% above £50,270
- Profits £6,725–£12,570: NI credits given automatically at £0 cost
- Profits below £6,725: voluntary Class 2 (£3.50/week) to protect State Pension
All tax and NI for self-employed is paid via Self Assessment — not PAYE.
Yes. From 6 April 2024, mandatory Class 2 NI was abolished. This calculator correctly shows £0.00 for Class 2 NI. The three scenarios are:
- Profit £12,570+: NI credits automatic, £0 cost
- Profit £6,725–£12,569: Treated as paid, NI credits given, £0 cost
- Profit below £6,725: Voluntary only — £3.50/week to protect State Pension (not mandatory)
Effective rate = total tax & NI paid ÷ gross income. Shows your overall tax burden.
Marginal rate = tax on the next £1 earned. Critical for decisions about extra work or pension contributions:
- 28% — Basic rate (20% tax + 8% NI)
- 42% — Higher rate (40% tax + 2% NI)
- 60% — Personal Allowance trap (£100k–£125,140)
- 47% — Additional rate (45% tax + 2% NI)
Salary sacrifice means giving up part of your gross salary in exchange for pension contributions. Because it happens before tax, you save:
- Income tax at your marginal rate (20%, 40% or 45%)
- Employee NI (8% or 2%)
Example: basic rate taxpayer sacrificing £100/month saves £28 in tax and NI — the pension only costs £72 net. Your employer may also pass on their NI saving (15% from April 2025) as extra pension contributions.
Note: Salary sacrifice reduces your contractual salary, which may affect mortgage applications and some state benefits.
Scotland has six income tax bands set by the Scottish Parliament. For 2025/26:
- Starter Rate: 19% (£12,571–£14,876)
- Basic Rate: 20% (£14,877–£26,561)
- Intermediate Rate: 21% (£26,562–£43,662)
- Higher Rate: 42% (£43,663–£75,000)
- Advanced Rate: 45% (£75,001–£125,140)
- Top Rate: 48% (above £125,140)
NI rates are identical across the whole UK. Select "Scotland" in the Region toggle to use Scottish rates.
Repayments are a percentage of income above a threshold — not of total income or the amount borrowed. 2025/26 thresholds:
- Plan 1: 9% above £26,065 — pre-2012 England/Wales students
- Plan 2: 9% above £28,470 — post-2012 England/Wales students
- Plan 4: 9% above £32,745 — Scottish students
- Plan 5: 9% above £25,000 — new students from August 2023 (England)
- Postgraduate: 6% above £21,000 — Master's and Doctoral loans
You can hold multiple plans simultaneously. Select all that apply in the calculator above.
Marriage Allowance lets one spouse or civil partner transfer £1,260 of their Personal Allowance to the other. To qualify:
- Transferring partner earns less than £12,570
- Receiving partner is a basic rate taxpayer (£12,571–£50,270)
- Must be married or in a civil partnership
The receiving partner saves up to £252/year. Claims can be backdated up to 4 tax years. In this calculator, tick "Marriage Allowance" if you are the receiving partner.
Key rules for 2024/25 and 2025/26:
- Dividend Allowance: First £500 tax-free (down from £1,000 in 2023/24)
- Basic Rate: 8.75% on dividends in the basic rate band
- Higher Rate: 33.75% in the higher rate band
- Additional Rate: 39.35% above £125,140
Dividends sit on top of other income when determining which band applies. They are not subject to NI.
Yes. For incomes between £100,000 and £125,140, the Personal Allowance tapers at £1 for every £2 earned above £100,000, creating an effective 60% marginal rate. The calculator correctly models this and shows it in the Marginal Rate field.
Pension contributions that bring adjusted net income below £100,000 are the most effective way to avoid this trap — use the pension field above to model the saving.
This calculator is provided for general guidance and informational purposes only. Results are estimates based on standard HMRC tax rates and thresholds for 2024/25 and 2025/26. Your actual tax liability may differ depending on your individual circumstances, including other income sources, tax reliefs, benefits in kind, and HMRC adjustments to your tax code.
This tool does not constitute financial, tax or legal advice. For personalised advice, please consult a qualified accountant or tax adviser, or contact HMRC directly. Tax rates and thresholds are subject to change — always verify with HMRC for the most up-to-date figures.