UK Income Tax
Enter annual income to estimate UK Income Tax, your effective and marginal rates, and how each band contributes — England/NI-style teaching model, not a filing substitute.
Calculate
Result
The formula
Subtract the personal allowance (optional) and other deductions from gross income, then stack each rate only on taxable income inside that band. Effective rate = tax ÷ gross × 100; marginal rate is the top band that still has taxable pounds.
Worked example
- Income £60,000; PA £12,570 → taxable £47,430
- 20% on first £37,700 of taxable ≈ £7,540
- 40% on remaining taxable ≈ £3,892 · total ≈ £11,432
- Effective ≈ 19.1%; marginal 40%
Result: ≈ £11,432 Income Tax at 19.1% effective / 40% marginal
How this UK estimate works
UK Income Tax is progressive: only the pounds inside each band are taxed at that band’s rate. This page uses a simplified England/Northern Ireland-style personal allowance and basic/higher/additional structure.
Personal allowance
When enabled, we subtract a fixed personal allowance (modelled at £12,570) before applying bands. Turn it off to feed income straight into the band table. Real allowance taper for high earners and blind person’s allowance are not modeled.
Rate bands
Simplified bands: 20% on taxable income up to £37,700, 40% up to a higher threshold, then 45%. Exact HMRC thresholds change with fiscal events — verify current GOV.UK figures.
What we do not model
National Insurance, Scottish Income Tax, dividend/savings rates, Marriage Allowance, Gift Aid, pension relief, and student loan deductions are omitted.
Interesting facts
Marginal ≠ effective
Your last pound may sit in the 40% band while your overall rate stays near 15–20% because lower bands still apply to earlier pounds.
Personal allowance first
Most people get a personal allowance before basic rate applies — tapered for very high incomes in the real system.
NI is separate
National Insurance is calculated apart from Income Tax and can be a large share of take-home pay.
Scotland differs
Scotland sets its own Income Tax rates and bands for non-savings, non-dividend income.
PAYE vs Self Assessment
Most employees settle via PAYE; Self Assessment covers additional income, self-employment, and some high earners.
Frequently asked questions
No. Use GOV.UK calculators or a qualified adviser. This page illustrates progressive bands with a simplified allowance model.
Marginal rate is the rate on your next pound of taxable income. Effective rate is total Income Tax ÷ gross income — almost always lower than your top band.
Enter gross pay, then leave personal allowance on for a ballpark. If you already know taxable income, turn the allowance off and enter that amount as income.
No — only a simplified Income Tax estimate. Pair with the take-home pay calculator for a fuller picture.
Not modeled. Scottish residents should use Scottish rate tables from Revenue Scotland / GOV.UK.
That is the simplified figure used here. Check the tax year on GOV.UK — allowances and tapers change.
References
- Income Tax rates and Personal Allowances Official UK Income Tax rates and allowances.
- National Insurance rates Separate from Income Tax — often needed for take-home estimates.
- Estimate Income Tax Official estimation guidance from the UK government.