How UK Income Tax bands work
In England, Wales, and Northern Ireland, Income Tax uses a personal allowance and then basic, higher, and additional rates. HMRC Income Tax rates and Personal Allowances publishes the current bands. For 2026 to 2027 the standard Personal Allowance is £12,570, the basic rate is 20%, the higher rate is 40%, and the additional rate is 45%.
Scotland sets its own rates. This calculator follows the England, Wales, and Northern Ireland structure and lets you edit bands if your facts differ. It is a planning estimate, not a Self Assessment return.
Personal Allowance and what this tool does not cover
HMRC reduces the Personal Allowance by £1 for every £2 of income above £100,000, so the allowance is zero at £125,140. HMRC Income Tax rates and Personal Allowances states that rule clearly. If your income is in that range, edit the allowance in the calculator so the estimate stays realistic.
This tool does not calculate National Insurance, dividend tax, or Scottish rates. People who need to file HMRC Self Assessment should still use HMRC services and a qualified accountant for the return.
How to use this UK Income Tax calculator
Enter income, keep or change the personal allowance, add extra deductions if they apply, then read taxable income, tax by band, and your effective and marginal rates. Export Excel to keep a copy for planning conversations.
Use the result to check cash you should set aside. Confirm every figure against HMRC before you file or pay.