Income Tax & NI Calculator

Calculate UK Income Tax and National Insurance for 2025/26 tax year.

2025/26 Tax Year: Personal Allowance £12,570. Basic rate 20% (up to £50,270). Higher rate 40%. Additional rate 45%. NI: 8% (main rate).
Taxable Income£0.00
Income Tax£0.00
National Insurance£0.00
Net Annual Income£0.00
Monthly Net£0.00
Effective Tax Rate0%

Tax Breakdown

ItemAmountRateTax Due

National Insurance Breakdown

BandAmountRateNI Due

Enter your income details above to see your Income Tax and National Insurance estimate.

UK Income Tax Calculator 2025/26

Use our free Income Tax and National Insurance Calculator to calculate exactly how much tax you’ll pay in the UK for the 2025/26 tax year. Whether you’re on PAYE, self-employed, or earning additional income from investments, this tool shows your take-home pay after income tax and National Insurance contributions.

How Income Tax Works in the UK (2025/26)

The UK income tax system is progressive, meaning you pay different rates on different portions of your income. For the 2025/26 tax year (6 April 2025 to 5 April 2026), the tax bands are:

Band Taxable Income Tax Rate
Personal Allowance Up to £12,570 0% (tax-free)
Basic Rate £12,571 to £50,270 20%
Higher Rate £50,271 to £125,140 40%
Additional Rate Over £125,140 45%

Note: Your Personal Allowance decreases by £1 for every £2 your income exceeds £100,000. Once you earn over £125,140, you have no Personal Allowance remaining.

National Insurance Contributions (2025/26)

National Insurance (NI) is separate from income tax and funds state benefits including the State Pension, NHS, and unemployment support. For employees earning over £12,570 per year:

  • 8% on earnings between £12,570 and £50,270 per year
  • 2% on earnings above £50,270 per year

Pension Contributions and Tax Relief

Contributions to registered pension schemes receive tax relief. If you contribute £100 to your pension, it effectively costs only £80 if you’re a basic rate taxpayer. Higher and additional rate taxpayers can claim back additional relief through their tax return.

In our calculator, entering your pension contribution amount reduces your taxable income automatically, reflecting this tax-efficient treatment.

Marriage Allowance

If you’re married or in a civil partnership, you may be able to transfer 10% of your Personal Allowance (£1,260 for 2025/26) to your spouse or partner if:

  • Your income is below your Personal Allowance (£12,570)
  • Your partner’s income is within the basic rate band

This can reduce their tax bill by up to £252 per year.

Child Benefit High Income Charge

If you or your partner earn over £50,000 per year and you claim Child Benefit, you may need to repay some or all of it through the High Income Child Benefit Charge (HICBC):

  • Between £50,000 and £60,000: 1% of Child Benefit for every £100 earned over £50,000
  • Above £60,000: 100% of Child Benefit must be repaid

Our calculator includes this charge if you tick the “Claiming Child Benefit” box and enter your household income details.

Frequently Asked Questions

What is my tax code and why does it matter?

Your tax code tells HMRC how much Personal Allowance you’re entitled to. Common codes include 1257L (standard), BR (all taxed at basic rate), and Emergency codes. An incorrect tax code can mean you’re paying too much or too little tax.

How much income tax will I pay on £45,000?

On £45,000 salary, you’d pay approximately £5,860 in income tax (after £12,570 Personal Allowance) and £2,594 in National Insurance, leaving net annual income of around £36,546 or £3,045 per month.

Does this calculator include Scottish tax rates?

This calculator uses UK (rest of Britain) tax rates. Scottish taxpayers have different bands: Starter Rate (19%), Basic Rate (20%), Intermediate Rate (21%), Higher Rate (42%), and Top Rate (47%). Contact HMRC or use a Scottish-specific calculator for accurate figures.

Are dividends and capital gains taxed separately?

Yes. Dividend income has its own tax-free allowance (£500 for 2025/26) with rates of 8.75% (basic), 33.75% (higher), and 39.35% (additional). Capital Gains Tax applies to profits from selling assets like property, shares, and businesses — check out our Capital Gains Tax Calculator for details.

When do I need to submit a Self Assessment tax return?

You typically need to submit a Self Assessment if you’re self-employed with income over £1,000, earn rental income, have untaxed income over £2,500, or have complex tax affairs. The deadline for online submission is 31 January following the end of the tax year.

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