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United Kingdom • Tax
UK Income Tax & National Insurance Calculator 2026
Calculate your UK income tax and National Insurance contributions. See your take-home pay under the new national insurance rules.
How UK salary deductions are calculated:
- Personal Allowance: You pay 0% income tax on the first £12,570 of earnings. If you earn over £100,000, this allowance reduces by £1 for every £2 of excess income.
- National Insurance: Calculated separately from tax. For the 2026/27 tax year, employees pay 8% on earnings between £12,570 and £50,270, and 2% on anything above that.
- Pension Contributions: Auto-enrolment pensions are usually calculated before tax is deducted, reducing your overall taxable income.
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UK Income Tax & National Insurance
UK taxpayers pay income tax on earnings above their Personal Allowance, alongside National Insurance contributions (NICs) which fund state benefits and pension entitlements. Both taxes are collected at source via the Pay As You Earn (PAYE) scheme.
How UK PAYE Deductions Are Computed
To estimate your UK take-home salary, deduct taxes in the following order:
- Determine Personal Allowance: Typically £12,570 (reduced by £1 for every £2 of income above £100,000).
- Calculate Taxable Income: Subtract Personal Allowance and pension contributions from gross salary.
- Apply Progressive Bands: Calculate income tax at 20% (Basic), 40% (Higher), and 45% (Additional) rates.
- Calculate National Insurance: Deduct Class 1 NICs on weekly or monthly earnings above the Primary Threshold.
- Sum Net Pay: Subtract total Income Tax and National Insurance from your gross wage.
2026/27 UK Income Tax & NI Parameters
| Parameter / Bracket | Rate / Amount |
|---|---|
| Standard Personal Allowance | £12,570 (0% Tax) |
| Basic Rate Tax Band | £12,571 to £50,270 (20% Tax) |
| Higher Rate Tax Band | £50,271 to £125,140 (40% Tax) |
| Additional Rate Tax Band | Over £125,140 (45% Tax) |
| Class 1 NI Rate (Employee) | 8% on earnings between primary and upper limits |
Frequently Asked Questions about UK Taxes
In the UK, Income Tax is a government levy on your personal earnings, including employment salary, profits from self-employment, pensions, rental income, and interest or dividends. This tax is used by HMRC to fund public services such as the NHS, education, and infrastructure.
Under the PAYE (Pay As You Earn) scheme, income tax is automatically deducted from your paycheck based on your tax code. You pay 0% on your Personal Allowance (typically the first £12,570), 20% on earnings between £12,571 and £50,270 (Basic Rate), 40% on earnings between £50,271 and £125,140 (Higher Rate), and 45% on earnings over £125,140 (Additional Rate).
Taxable income is calculated before income tax is deducted, but after subtracting your tax-free Personal Allowance (£12,570) and any tax-exempt deductions (such as pension contributions made via salary sacrifice) from your gross pay.
Your Personal Allowance reduces by £1 for every £2 of adjusted net income over £100,000. It is fully phased out once your income reaches £125,140.
You do not pay National Insurance if you earn less than the Primary Threshold (£12,570 per year / £1,047 per month).