How UK income tax works
Everyone gets a tax-free personal allowance (£12,570 for 2025/26). Income above it is taxed in bands at increasing rates. On top of income tax, employees pay National Insurance, and graduates may repay a student loan — all of which reduce take-home pay.
2025/26 bands — England, Wales & Northern Ireland
- Personal allowance up to £12,570 — 0%
- Basic rate £12,571 – £50,270 — 20%
- Higher rate £50,271 – £125,140 — 40%
- Additional rate above £125,140 — 45%
2025/26 bands — Scotland
- Starter rate £12,571 – £15,397 — 19%
- Basic rate £15,398 – £27,491 — 20%
- Intermediate rate £27,492 – £43,662 — 21%
- Higher rate £43,663 – £75,000 — 42%
- Advanced rate £75,001 – £125,140 — 45%
- Top rate above £125,140 — 48%
National Insurance & student loans
Employee Class 1 NI is 8% on earnings between £12,570 and £50,270, then 2% above. Student-loan repayment is 9% of income over your plan threshold (6% for postgraduate loans), using the 2025/26 thresholds: Plan 1 £26,065, Plan 2 £28,470, Plan 4 £32,745, Plan 5 £25,000 and Postgraduate £21,000.
Frequently asked questions
What are the 2025/26 UK income tax bands?
For England, Wales and Northern Ireland: a £12,570 personal allowance (0%), then 20% up to £50,270, 40% up to £125,140, and 45% above. The personal allowance is tapered away above £100,000. Scotland uses six bands from 19% to 48%.
How much National Insurance do I pay?
Employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270 a year, then 2% on earnings above £50,270. This calculator adds NI so you see your real take-home pay.
How is the personal allowance tapered?
If your income is over £100,000, your £12,570 personal allowance drops by £1 for every £2 of income above £100,000, reaching zero at £125,140. This creates an effective 60% marginal rate in that band — the calculator handles it automatically.
Does it cover Scotland and student loans?
Yes. Switch the region to Scotland for the six Scottish bands (19%–48%), and choose your student-loan plan (Plan 1, 2, 4, 5 or Postgraduate) to include repayments at the 2025/26 thresholds.
Is this my exact pay?
It is a close estimate. It assumes a standard tax code and excludes things like dividend and savings tax, benefits in kind, and salary adjustments beyond a pension contribution. Check your payslip or HMRC for exact figures.
2025/26 tax-year figures. Estimates for informational purposes only and not tax advice — verify with HMRC or a tax professional.