How to use the Income Tax Calculator
- 1 Enter your gross yearly income from employment, before tax.
- 2 Enter any salary-sacrifice pension contributions, which reduce taxable pay.
- 3 Read your income tax for the year and the month.
- 4 Check the table to see the tax charged in each band and your personal allowance.
Worked example
£45,000 salary. The first £12,570 is tax-free. The remaining £32,430 falls in the basic rate band, so tax is £32,430 × 20% = £6,486 a year, or about £540.50 a month. On £110,000 the allowance falls to £7,570 and total tax rises to £33,432.
Features
2026/27 bands
Personal allowance £12,570, basic rate 20% to £50,270, higher rate 40% to £125,140 and additional rate 45% above.
Allowance taper
Above £100,000 the personal allowance falls by £1 for every £2 of income, the 60% effective tax trap.
Band breakdown
See exactly how much income falls into each band and the tax on it.
When to use it
Checking your payslip
Compare the tax on your payslip with the yearly figure divided by 12.
Pay rises
See how much of a raise you keep, especially above £50,270 or £100,000.
Pension planning
Find how salary sacrifice reduces tax, most of all in the £100,000 to £125,140 band.
Job offers
Compare two salaries after tax before you decide.
Frequently asked questions
What is the personal allowance for 2026/27?
£12,570. It is frozen and is reduced by £1 for every £2 of adjusted net income over £100,000, reaching zero at £125,140.
What are the income tax bands?
In England, Wales and Northern Ireland: 20% on £12,571 to £50,270, 40% on £50,271 to £125,140 and 45% above £125,140.
Does this work for Scotland?
No. Scottish taxpayers pay different rates and bands on earnings, so use a Scottish income tax calculator.
Does it include National Insurance?
No. Use the take-home pay calculator to see income tax, National Insurance and student loan together.
Why is the tax on £110,000 so high?
Between £100,000 and £125,140 you lose £1 of allowance for every £2 earned, so each extra pound is taxed at an effective 60%.
Is a pension contribution taxed?
Salary-sacrifice and net-pay pension contributions come out of pay before tax, so they reduce taxable income. Relief-at-source pensions work differently, with the provider claiming basic-rate relief.
What about dividends and savings?
This calculator covers earnings only. Dividends and savings interest have their own allowances and rates on top.
How do I avoid the 60% tax trap?
Paying more into a pension through salary sacrifice, or making gift aid donations, reduces adjusted net income. Bringing income back to £100,000 restores the full personal allowance and saves tax at an effective 60%.
What is my tax code?
Most employees with one job have the code 1257L, which gives the £12,570 allowance. Your code can differ if you have benefits in kind, owe tax from earlier years or have a second job.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated