UKAnnual · GBPTax-resident
Repayments are a share of earnings above your plan's threshold.
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UKHow tax works in the UK
Income tax is charged on taxable income. This is pay above the £12,570 personal allowance, which is reduced by £1 for every £2 of income over £100,000. Scotland sets its own bands. England, Wales and Northern Ireland share the rest-of-UK bands.
Employees also pay Class 1 National Insurance: 8% on earnings between £12,570 and £50,270, and 2% above that. It's the same across the UK.
Pension contributions are assumed to be made by salary sacrifice, which reduces your pay before income tax and National Insurance are worked out, so it saves both. Student loan repayments are 9% of earnings above your plan's threshold, and postgraduate loan repayments 6% above £21,000.
UK income tax rates 2026/27
| Band | Income (GBP) | Rate |
|---|---|---|
| Basic rate | Up to 37,700 | 20% |
| Higher rate | 37,701 – 125,140 | 40% |
| Additional rate | Over 125,140 | 45% |
| Band | Income (GBP) | Rate |
|---|---|---|
| Starter rate | Up to 3,967 | 19% |
| Basic rate | 3,968 – 16,956 | 20% |
| Intermediate rate | 16,957 – 31,092 | 21% |
| Higher rate | 31,093 – 62,430 | 42% |
| Advanced rate | 62,431 – 125,140 | 45% |
| Top rate | Over 125,140 | 48% |
UK National Insurance rates 2026/27
| Band | Earnings (GBP) | Rate |
|---|---|---|
| Below the primary threshold | Up to 12,570 | 0% |
| Main rate | 12,571 – 50,270 | 8% |
| Upper rate | Over 50,270 | 2% |
Frequently asked questions
- Which tax year does this UK calculator use?
- It uses 2026/27 by default, the latest year with published rates. You can also choose 2025/26 or 2024/25.
- What is the top rate of income tax in the UK?
- In 2026/27, the top rate is 45% (the additional rate) in England, Wales and Northern Ireland, and 48% (the top rate) in Scotland.
- Can I compare the UK with another country?
- Yes. The take-home pay calculator shows up to three countries side by side on the same package, with amounts converted at ECB reference rates.