Finance

UK Income Tax

Approximate UK Income Tax using a simplified personal allowance and progressive bands. For learning and ballpark planning — not filing.

Calculate

Updates as you type

Result

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The formula

Taxable income = max(0, income − personal allowance). Then apply 20% / 40% / 45% bands on the simplified thresholds used by this tool.

Taxable = Income − PA · Tax = 20%/40%/45% on successive bands

Worked example

  1. Income £60,000; PA £12,570 → taxable £47,430
  2. 20% on first £37,700 of taxable ≈ £7,540
  3. 40% on remaining taxable ≈ £3,892 · total ≈ £11,432

Result: Estimated Income Tax ≈ £11,432 (simplified)

How this UK estimate works

The engine uses a simplified England/Northern Ireland-style structure: personal allowance, then basic, higher, and additional rates. Scotland and Welsh rates, National Insurance, and student loans are not included.

Personal allowance

We subtract a fixed personal allowance (modelled at £12,570) before applying rates. 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 contributions, dividend/savings rates, Marriage Allowance, Gift Aid, pension relief, Scottish Income Tax, and student loan deductions are omitted.

Interesting facts

Personal allowance

UK taxpayers typically 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.

Marginal vs effective

Your top rate is marginal; effective rate divides total Income Tax by gross income and is usually lower.

Frequently asked questions

No. Use GOV.UK calculators or a qualified adviser. This is a simplified illustration.

No — only a simplified Income Tax estimate.

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.

No. File with HMRC-approved software or forms; this page is educational only.

References

  1. Income Tax rates and Personal Allowances — GOV.UK (HMRC) Official UK Income Tax rates and allowances.
  2. National Insurance rates — GOV.UK Separate from Income Tax — often needed for take-home estimates.
  3. Estimate Income Tax — GOV.UK Official estimation guidance from the UK government.