UK Income Tax Calculator (2025/26)

How it works

Taxable = income − personal allowance (£12,570, reduced by £1 for every £2 above £100,000); 20% on the first £37,700, 40% to £125,140 of income, 45% above

The UK bands are applied to income after the personal allowance, so the higher-rate threshold sits at £50,270 of gross income (£12,570 + £37,700). Because the allowance is withdrawn between £100,000 and £125,140, every £100 earned there costs £40 tax on the income plus £20 of tax on the lost allowance — the notorious 60% trap. Thresholds have been frozen since 2021 and are due to stay frozen to April 2028, dragging more people into higher bands as pay rises.

Worked example

£65,000: allowance £12,570, £37,700 at 20% = £7,540, £14,730 at 40% = £5,892 → £13,432, an effective 20.7% and marginal 40%.

Frequently asked questions