UK Income Tax Calculator
Enter your income below for an instant estimated tax breakdown
Take-home pay
£0
Total tax
£0
incl. all NI
Effective rate
0%
National Insurance
£0
Personal Allowance
£12,570
Where your income goes
You keep
You pay
Income Tax
Dividend Tax
Employee NI
Class 4 NI
Class 2 NI
Total tax & NI
Total income
Amount
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Frequently Asked Questions
How is UK income tax calculated?
UK income tax is calculated on your taxable income — your total income minus your Personal Allowance (£12,570 for 2026/27). The basic rate of 20% applies to income between £12,571 and £50,270. The higher rate of 40% applies from £50,271 to £125,140, and the additional rate of 45% applies above £125,140.
What happens to my Personal Allowance above £100,000?
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above the threshold. This means it reaches zero at £125,140, creating an effective marginal rate of 60% in that band.
How are dividends taxed?
Dividends have a £500 tax-free allowance (2026/27). Above that, they’re taxed at 10.75% (basic rate), 35.75% (higher rate), or 39.35% (additional rate). Dividend income sits on top of your other income when working out which band applies.
How does National Insurance work for the self-employed?
Self-employed individuals no longer pay Class 2 NI once profits reach the Small Profits Threshold — it is treated as paid to protect your benefit entitlement. You still pay Class 4 NI (6% on profits between £12,570 and £50,270, then 2% above £50,270). These are in addition to income tax.
Is this calculator accurate?
This calculator provides a good estimate based on standard HMRC rates for the selected tax year. It does not account for tax reliefs, pension contributions, Gift Aid, marriage allowance, or other deductions. For a precise figure, consult a qualified accountant or use HMRC’s own tools.