Free Tool
UK Tax Calculator 2025-2027
Use this free calculator to estimate your UK income tax, National Insurance, student loan repayments, and take-home pay for the 2025-2026, 2026-2027, and 2027-2028 tax years. The UK operates a Pay As You Earn (PAYE) system with progressive tax bands: Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%).
This calculator uses official HMRC tax bands, thresholds, and National Insurance rates. Results are estimates and should be verified with HMRC or a qualified tax advisor.
Calculate Your UK Tax
In one sentence: Free HMRC-aligned UK tax calculator that estimates income tax, National Insurance, student loan repayments, and take-home pay for 2025-2028.
Key data:
- Personal Allowance: £12,570 (phases out above £100,000)
- Income tax bands: Basic 20%, Higher 40%, Additional 45%
- National Insurance: 8% on earnings £12,571–£50,270, then 2%
- Scotland uses 6 bands with rates from 19% to 48%
Official source: HM Revenue & Customs (HMRC)
UK Tax System Overview
Quick answer: The UK tax year runs April 6 to April 5. Most employees pay tax through PAYE (Pay As You Earn), while self-employed individuals file a Self Assessment return. The system uses progressive tax bands: Personal Allowance (0% up to £12,570), Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%).
Income Tax Bands 2025-2026
Quick answer: For 2025-2026, the first £12,570 is tax-free (Personal Allowance), then 20% on income from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above £125,140. The Personal Allowance reduces by £1 for every £2 earned above £100,000, phasing out completely at £125,140.
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Income Tax Bands 2026-2027 & 2027-2028
For 2026-27 and 2027-28, the tax bands remain frozen at 2025-26 levels (no adjustment for inflation):
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Personal Allowance Taper: The Personal Allowance reduces by £1 for every £2 earned above £100,000. It phases out completely at £125,140.
National Insurance Contributions (NICs) 2025-2028
In addition to income tax, UK employees pay National Insurance. For all tax years 2025-2028:
- Class 1 (Employees): 8% on earnings from £12,571 to £50,270, then 2% above £50,270
- Class 2 (Self-employed): £3.50 per week for profits above £6,845
- Class 4 (Self-employed): 6% on profits from £12,571 to £50,270, then 2% above £50,270
Student Loan Repayments 2025-2028
| Plan | 2025-26 Threshold | 2026-27 Threshold | 2027-28 Threshold | Rate |
|---|---|---|---|---|
| Plan 1 | £26,065 | £26,816 | £27,597 | 9% |
| Plan 2 | £28,470 | £29,385 | £29,385 (frozen) | 9% |
| Plan 4 (Scotland) | £32,745 | £33,795 | £34,912 | 9% |
| Plan 5 (Aug 2023+) | £25,000 | £25,000 | £25,000 (from Apr 27) | 9% |
| Postgraduate | £21,000 | £21,000 | £21,000 | 6% |
Scottish Income Tax 2025-2028
Quick answer: Scotland has 6 devolved tax bands with rates from 19% (Starter) to 48% (Top). A typical earner on £40,000 pays approximately £1,000 more in tax than their English counterpart due to the Starter Rate (19%) and Intermediate Rate (21%).
Scotland uses a more progressive system with 6 tax bands. For 2025-2026:
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 to £14,876 | 19% |
| Basic Rate | £14,877 to £25,688 | 20% |
| Intermediate Rate | £25,689 to £43,662 | 21% |
| Higher Rate | £43,663 to £75,000 | 42% |
| Advanced Rate | £75,001 to £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
2026-27 Scottish Changes: Starter band increases to £16,332, Basic increases to £27,398. Higher/Advanced/Top rates remain frozen at 2025-26 levels.
Key UK Tax Reliefs and Allowances
- Personal Allowance: £12,570 per year (tax-free income)
- Pension Contributions: Tax relief at your marginal rate on contributions to workplace or personal pensions
- Marriage Allowance: Transfer up to £1,260 of unused Personal Allowance to spouse/civil partner
- Capital Gains Tax Allowance: £3,000 annual exempt amount
- ISA Allowance: £20,000 annual allowance; interest and investment growth are tax-free
How does the Marriage Allowance work?
Marriage Allowance lets one spouse or civil partner transfer £1,260 of their unused Personal Allowance to the other. To qualify, the transferor must earn less than £12,570 (below the Personal Allowance) and the recipient must be a Basic Rate taxpayer (income under £50,270). The recipient saves tax at 20% on the transferred amount — up to £252 per year.
For more information, visit the official HMRC Income Tax rates page or use the HMRC online tax checker.
Scotland and Wales Tax Differences
While England and Northern Ireland use the standard UK tax bands, Scotland has devolved tax powers that allow it to set different income tax rates for its residents.
Why Scotland Pays More Tax
For a typical earner on £40,000, Scottish residents pay approximately £1,000 more in tax annually compared to their English counterparts due to the additional Starter Rate (19%) and higher intermediate rate (21% vs 20%).
National Insurance Differences
Unlike income tax, National Insurance rates are the same across all of the UK. All employees pay 8% on earnings from £12,571 to £50,270, then 2% above that threshold. These rates apply whether you live in England, Scotland, Wales, or Northern Ireland.
Does the Personal Allowance taper affect my student loan repayment?
No. The Personal Allowance taper (reducing tax-free allowance by £1 per £2 earned above £100,000) is separate from student loan repayments. Student loans are calculated on your total income above the plan-specific threshold (e.g., £25,000 for Plan 5, 9% rate), regardless of how much of your Personal Allowance has been tapered.
How much National Insurance do self-employed people pay?
Self-employed individuals pay Class 2 NICs of £3.50 per week on profits above £6,845, plus Class 4 NICs of 6% on profits from £12,571 to £50,270 and 2% on profits above £50,270. This is significantly different from the employee rate structure and reflects the different benefits entitlement for the self-employed.
For the most up-to-date Scottish tax information, visit Revenue Scotland.