How this is calculated
The Personal Allowance (£12,570) is tax-free. It reduces by £1 for every £2 earned above £100,000, reaching £0 at £125,140. Income above the allowance is taxed at 20% (basic rate) up to £50,270, 40% (higher rate) up to £125,140, and 45% (additional rate) above that. National Insurance (Class 1, employee) is 8% on earnings between £12,570 and £50,270, and 2% above £50,270.
Worked example
On a £60,000 salary: the first £12,570 is tax-free, the next £37,700 is taxed at 20% (£7,540), and the remaining £9,730 above £50,270 is taxed at 40% (£3,892) — total Income Tax £11,432. National Insurance is £3,210.60. Estimated take-home pay: £45,357.40.
Assumptions & limitations
- Scotland is not covered — Scottish Income Tax has different bands and rates.
- Does not include student loan repayments, workplace pension contributions, or salary sacrifice arrangements, all of which affect actual take-home pay.
- Assumes standard tax code (1257L) with the full Personal Allowance available before any taper.
- Does not model dividend income, savings interest allowances, or Marriage Allowance transfers.
Sources
House of Commons Library, "Direct taxes: Rates and allowances for 2026/27" (CBP-10618); Deloitte UK Tax Rates 2026/27 (Autumn Budget 2025). See our sources page.
Frequently asked questions
Does this cover Scotland?
No. Scotland has its own income tax bands and rates set by the Scottish Parliament, which differ from the rest of the UK. This calculator covers England, Wales and Northern Ireland only.
What happens to my Personal Allowance above £100,000?
It reduces by £1 for every £2 you earn above £100,000, reaching £0 once your income hits £125,140 — sometimes called the "60% tax trap" because of the effective marginal rate this creates.
Does this include student loan repayments?
No. Student loan repayment thresholds and rates depend on which repayment plan you're on and aren't included here.