Income Tax Calculator
Work out the Income Tax due on your total income for 2026/27, band by band, including how the Personal Allowance is reduced on higher incomes.
Using 2026/27 UK tax rates
Gross salary or wages for the year.
Advanced options
Profit after allowable expenses.
Rental profit or other income taxed at the ordinary rates.
Income Tax due (2026/27)
£5,486.00
- Total income
- £40,000.00
- Personal Allowance
- £12,570.00
- Taxable income
- £27,430.00
- Basic rate: 20% on £27,430.00
- £5,486.00
- Income after tax
- £34,514.00
- Effective rate
- 13.72%
- Marginal rate
- 20%
Income Tax only. National Insurance and student loans are not included.
Which income belongs in each box?
Employment income is your gross pay before deductions. Self-employed profit is turnover less allowable expenses, not the money drawn from the business. Pension income covers the State Pension and private pensions in payment. Leave dividends and savings interest out.
What this means
The result shows the Income Tax charged on your total income for the year and how much of it falls in each band. The effective rate is the tax as a share of everything you earned; the marginal rate is what the next pound would cost.
This covers ordinary income: wages, profits, pensions and most other taxable income. Dividends and savings interest have their own rates and allowances, so they are handled separately.
Quick answers
- How much Income Tax do I pay on £40,000.00?
£5,486.00 in England, Wales or Northern Ireland: the first £12,570.00 is tax free and the rest is taxed at the basic rate. That is an effective rate of 13.72%.
- What are the Income Tax bands for 2026/27?
After the £12,570.00 Personal Allowance: basic rate 20%, higher rate 40% and additional rate 45%. Scotland has six bands of its own.
- Is National Insurance included here?
No. This page covers Income Tax only. For a full picture of deductions from wages, use the salary calculator.
- When does the Personal Allowance disappear?
It falls by £1 for every £2 of income above £100,000.00 and reaches zero at £125,140.00.
Know your marginal rate before making decisions
Pension contributions, Gift Aid and the timing of income all work on the rate applied to your next pound rather than your average rate.
If your income is between £100,000 and £125,140, the tapered Personal Allowance makes that next pound unusually expensive.
You may also find useful
- Salary CalculatorTake-home pay after Income Tax, National Insurance, pension and student loan.
- Dividend Tax CalculatorIncome Tax on your dividends once salary, allowances and tax bands are applied.
- Sole Trader vs Limited Company CalculatorEstimated take-home from the same profit as a sole trader or through a company.
- Salary vs Dividend CalculatorCompare how much you keep from different salary and dividend combinations.
How we calculated it
For 2026/27 the steps are:
- Add up all the income you entered.
- Apply the Personal Allowance of £12,570.00, reduced by 50p for every £1 above £100,000.00.
- Charge the remaining taxable income across the bands for your part of the UK, taking each band in turn.
- Add the band charges together to give the tax due.
Assumptions
- One full tax year, 2026/27, with UK residence throughout.
- Ordinary income only, so no dividends, savings interest or capital gains.
- No pension contributions, Gift Aid or other reliefs that extend the bands.
- No Marriage Allowance transfer or Blind Person's Allowance.
How this calculator works
UK Income Tax is progressive. Income is stacked from the bottom and each band taxes only the slice of income that falls inside it. Crossing into a higher band never changes the tax on the income below it.
Self-employed profits are taxed in the same bands but also attract Class 4 National Insurance. If you are choosing a business structure, the sole trader vs limited company calculator compares the totals, and the dividend tax calculator deals with company distributions.
Worked examples
£40,000.00 of employment income
The allowance covers £12,570.00, leaving £27,430.00 taxable at the basic rate. Tax due is £5,486.00 and income after tax is £34,514.00.
£60,000.00 across two bands
£37,700.00 at 20%, £9,730.00 at 40%. Total tax is £11,432.00, an effective rate of 19.05% even though the marginal rate is 40%. A Scottish taxpayer on the same income pays £13,182.05.
£105,000.00 inside the taper
The allowance is cut to £10,070.00, so tax rises to £30,432.00. Each extra pound in this range costs 60% once the lost allowance is counted.
Key terms explained
- Taxable income
Total income less the Personal Allowance and any other deductions. It is the figure the bands are applied to, not your gross income.
- Effective rate
Tax due divided by total income. It is always lower than your top band rate because earlier slices of income were taxed at lower rates or not at all.
- Scottish taxpayer
Someone whose main home is in Scotland for most of the tax year. Scottish rates apply to earnings, profits and pensions, but not to dividends or savings interest.
Common mistakes
Adding dividends or savings interest to the income box
Those have separate allowances and rates and sit on top of other income. Entering them here would overstate the tax on your ordinary income.
Treating the tax bill as a take-home figure
National Insurance, student loans and pension contributions are not included. Income after tax on this page is not the same as take-home pay.
Using UK bands while living in Scotland
Where you live decides the rates on earned income. Select Scotland to apply the Scottish bands, which start lower and include an advanced and a top rate.
Common questions
How much Income Tax will I pay on £60,000.00 in 2026/27?
£11,432.00 in England, Wales or Northern Ireland and £13,182.05 in Scotland, assuming a full Personal Allowance and no other reliefs.
What income counts towards Income Tax?
Wages, self-employed profits, most pensions, rental profit and taxable benefits. Dividends and savings interest are taxable too but use separate rates and allowances.
How is the Personal Allowance reduced?
By £1 for every £2 of income above £100,000.00, which removes it completely at £125,140.00.
Do Scottish rates apply to all my income?
They apply to earnings, profits and pension income if Scotland is your main home for most of the tax year. Dividends and savings interest keep the UK-wide rates.
Why is my effective rate lower than my tax band?
Because only the slice of income inside a band is taxed at that band's rate. Earlier income is covered by the allowance or taxed at lower rates, which pulls the average down.
Does a pension contribution cut my Income Tax bill?
Usually yes. Contributions attract relief at your marginal rate and can restore some Personal Allowance if your income is in the taper range. This calculator shows the position before any such contributions.
Is this the same as a Self Assessment calculation?
No. It estimates the tax on ordinary income only, without payments on account, National Insurance, other reliefs or adjustments from previous years.
Sources
- Income Tax rates and Personal Allowances : GOV.UK
- Income Tax in Scotland : GOV.UK
Last reviewed: 8 September 2026 · Statutory rates: 2026/27. This calculator is information only and is not tax, accounting or financial advice.