UK Income Tax Calculator
Estimate annual Income Tax on earnings, pensions, property income, savings interest and dividends. Choose any UK nation, apply the Personal Allowance taper, and model relief-at-source pension contributions or Gift Aid without mixing annual tax with payslip deductions.
Last Updated: July 29, 2026Calculate UK Income Tax for 2026/27
Use full-year figures for 6 April 2026 to 5 April 2027. The estimate covers standard annual Income Tax rules. It does not calculate National Insurance, student loans or a custom PAYE tax code.
Annual liability on £50,000.00 of income in England.
This is an annual liability estimate. PAYE timing, tax codes, National Insurance and student-loan deductions are separate.
Tax by income type
| Income type | Taxable amount | Tax |
|---|---|---|
| Non-savings income | £37,430.00 | £7,486.00 |
| Savings interest | £0.00 | £0.00 |
| Dividends | £0.00 | £0.00 |
Rate-band calculation
| Band or allowance | Income slice | Rate and tax |
|---|---|---|
| Non-savings basic rate | £37,430.00 | 20% = £7,486.00 |
Calculation steps
- Total entered income is £50,000.00.
- Adjusted net income keeps the full £12,570.00 Personal Allowance.
- Taxable non-savings income is £37,430.00.
- The 20% basic rate produces £7,486.00 of Income Tax.
How the UK Income Tax Calculator Works
This calculator estimates full-year individual Income Tax for 2026/27. It keeps non-savings income, savings interest and dividends separate because each category follows a different rate sequence.
Non-savings income includes employment income, taxable pensions, self-employment profit, property profit and most other ordinary taxable income. England, Wales and Northern Ireland use the same 20%, 40% and 45% annual rates. Scottish taxpayers use six rates from 19% to 48% for non-savings, non-dividend income. Savings and dividends remain subject to UK-wide rules even when the taxpayer lives in Scotland.
How to Use This Calculator
- Select the nation that determines your Income Tax status. Choose Scotland only when HMRC treats you as a Scottish taxpayer.
- Enter annual non-savings income after valid business expenses, salary sacrifice, net-pay pension deductions and other deductions already taken before tax.
- Enter taxable savings interest and dividends separately. Leave out income sheltered inside an ISA.
- Enter only net personal pension payments made to a relief-at-source scheme. The calculator converts the 80% payment to its gross amount.
- Enter valid Gift Aid donations as the cash amount paid. The tool grosses them up by 100 divided by 80.
- Add Income Tax already deducted or paid if you want a simple difference between estimated liability and payments.
- Select Calculate Income Tax, then review the allowance, category totals and rate-band rows.
Use figures from P60s, P45s, pension statements, bank interest certificates, dividend vouchers, rental accounts and Self Assessment records. Do not enter gross salary in the pension box. A salary-sacrifice or net-pay contribution should already reduce the non-savings amount.
UK Income Tax Calculation Order
The calculation follows the standard ordering used for a planning estimate. It first works out adjusted net income and the Personal Allowance. It tests valid allowance allocations across non-savings income, savings and dividends, then uses the allocation that produces the lowest supported liability. Taxable categories are stacked as non-savings income, savings and dividends.
Each progressive rate applies only to the slice inside its band. Entering a higher band does not move all earlier income into the higher rate. The Personal Savings Allowance and Dividend Allowance use 0% bands. They reduce tax, but their income still consumes basic, higher or additional-rate capacity.
Worked Example: £50,000 of Employment Income
Assume a taxpayer in England, Wales or Northern Ireland has £50,000 of non-savings income, no interest, no dividends and no relief-at-source payment. Adjusted net income remains below £100,000, so the full £12,570 Personal Allowance is available.
| Step | Calculation | Amount |
|---|---|---|
| Taxable income | £50,000 minus £12,570 | £37,430.00 |
| Basic-rate tax | £37,430 at 20% | £7,486.00 |
| Annual Income Tax | No higher-rate slice | £7,486.00 |
| Income after tax | £50,000 minus £7,486 | £42,514.00 |
This does not subtract employee National Insurance. It also does not predict the timing of PAYE deductions. A tax code, prior pay, taxable benefits and payroll rounding can make individual payslips differ while the annual standard-rule liability remains similar.
England, Wales and Northern Ireland Rates for 2026/27
The table shows taxable-income bands after the available Personal Allowance. With the full allowance, the 40% rate normally begins when gross income exceeds £50,270. The allowance taper changes the gross-income point for taxpayers above £100,000.
| Band | Taxable-income slice | Rate |
|---|---|---|
| Basic rate | First £37,700 | 20% |
| Higher rate | £37,700.01 to £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
Welsh Income Tax codes normally begin with C, but the supported 2026/27 percentages and bands match England and Northern Ireland. Residence and HMRC status decide the applicable nation, not the location of an employer alone.
Scottish Income Tax Rates for 2026/27
Scottish rates apply to wages, pensions, self-employment profits, property income and most other non-savings, non-dividend income. The gross ranges below assume the standard £12,570 Personal Allowance.
| Scottish band | Gross range with full allowance | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Above £125,140 | 48% |
A Scottish taxpayer pays UK-wide tax on savings interest and dividends. The calculator therefore uses Scottish bands for the non-savings category, then positions savings and dividends within the UK basic, higher and additional-rate limits.
Savings Interest and the Personal Savings Allowance
Low non-savings income can leave a starting-rate band of up to £5,000 for savings. Every pound of taxable non-savings income reduces this band by one pound. It disappears once non-savings income uses the full £5,000 margin above the Personal Allowance.
The Personal Savings Allowance is normally £1,000 for a basic-rate taxpayer, £500 for a higher-rate taxpayer and zero for an additional-rate taxpayer. Scottish taxpayers are classified for this allowance by applying the UK-wide basic, higher and additional limits to total taxable income. Interest above available 0% bands is taxed at 20%, 40% or 45% for 2026/27.
Dividend Tax Rates Changed for 2026/27
The Dividend Allowance remains £500. Dividend income inside the allowance is taxed at 0%, but it still occupies a tax band. Dividends above it use the rate reached after non-savings income and savings interest have been stacked first.
| Dividend band | 2026/27 rate | Allowance |
|---|---|---|
| Basic | 10.75% | First eligible £500 at 0% |
| Higher | 35.75% | 0% slice still uses band capacity |
| Additional | 39.35% | 0% slice still uses band capacity |
The basic and higher dividend rates increased by two percentage points from 6 April 2026. The additional dividend rate stayed at 39.35%. Dividends from investments held inside an ISA are excluded from this calculation.
Adjusted Net Income, Pension Relief and Gift Aid
The standard Personal Allowance is £12,570. It falls by £1 for every complete £2 of adjusted net income above £100,000 and reaches zero at £125,140. Adjusted net income includes taxable earnings, savings, dividends and other taxable sources before the Personal Allowance, less supported reliefs.
A relief-at-source pension provider normally adds basic-rate relief to the net payment. If you pay £800, the gross contribution is normally £1,000. A valid £800 Gift Aid donation is also treated as £1,000 gross. Supported gross amounts reduce adjusted net income and extend applicable tax bands, which can produce further relief for taxpayers above 20%.
The calculator grosses a net relief-at-source pension payment by 100/80 to the penny. It grosses Gift Aid by 100/80 and rounds that result up to a whole pound, following HMRC's Tax Logic method. It does not check relevant UK earnings, pension annual allowance, tapered annual allowance, carry forward, the money purchase annual allowance or a Gift Aid donor shortfall. Enter only payments already checked as eligible.
Tax on each income slice is rounded down to two decimal places before category totals are added. This follows HMRC's published Tax Logic method and avoids rounding a half-penny upward.
Annual Income Tax Is Not the Same as PAYE or Take-Home Pay
PAYE is a collection method. Employers and pension providers use a tax code, pay frequency and year-to-date records to collect tax during the year. An annual liability estimate can differ from the amount deducted by a particular date.
Employee National Insurance follows earnings-period rules rather than this annual income ordering. A one-off bonus can therefore change NI even when annual Income Tax stays the same. Student and postgraduate loans also use pay-period thresholds. Keeping those calculations on the dedicated take-home-pay page prevents an annual shortcut from misrepresenting bonus timing.
The optional tax-paid field provides only a subtraction: estimated liability minus the entered payments. A displayed refund is not an HMRC decision. A complete refund or balance calculation can require tax credits, other charges, prior adjustments, payments on account and information outside this form.
What This Calculator Does Not Include
- National Insurance, student loans, High Income Child Benefit Charge or Capital Gains Tax.
- Marriage Allowance, Married Couple's Allowance, Blind Person's Allowance or transferred allowances.
- Custom PAYE codes such as BR, D0, D1, 0T, K, emergency or Scottish and Welsh code adjustments.
- Foreign income rules, split-year treatment, remittance or four-year foreign income and gains claims.
- Trust income, chargeable-event gains, life-policy top slicing, lump-sum special rates or deficiency relief.
- Residential finance-cost tax reductions, trading losses, property losses, tax credits or filing elections.
- Pension annual-allowance charges, Gift Aid shortfall charges, interest, penalties or payments on account.
Use the result for planning. Compare a filing decision with HMRC guidance, compliant tax software or a qualified UK tax professional who has the complete facts.
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Frequently Asked Questions
What is the UK Personal Allowance for 2026/27?
The standard Personal Allowance is £12,570. It falls by £1 for every complete £2 of adjusted net income above £100,000 and reaches zero at £125,140.
What are the 2026/27 Income Tax rates in England, Wales and Northern Ireland?
Taxable non-savings income uses 20% within the first £37,700, 40% above that through £125,140 and 45% above £125,140. Available reliefs can extend band limits.
Does Scotland use different Income Tax rates?
Yes. Scottish non-savings, non-dividend income uses six rates of 19%, 20%, 21%, 42%, 45% and 48%. Savings interest and dividends use UK-wide rates.
Does this calculator include National Insurance?
No. It estimates annual Income Tax liability. National Insurance uses employment and pay-period rules, so use the UK Take-Home Pay Calculator for NI and payslip deductions.
How much savings interest is tax free?
You can have a Personal Allowance, a savings starting-rate band of up to £5,000 and a Personal Savings Allowance of £1,000 or £500. The exact total depends on all income and the highest tax band reached.
What is the Dividend Allowance for 2026/27?
The Dividend Allowance is £500. Eligible dividend income inside it is taxed at 0%, but it still uses tax-band capacity when later dividend rates are determined.
What are the UK dividend tax rates for 2026/27?
Dividend income above available allowances is taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band.
How do relief-at-source pension contributions affect tax?
The provider normally adds 20% basic-rate relief to your net payment. The gross amount can reduce adjusted net income and extend tax bands, creating further relief where supported.
Can Gift Aid restore part of the Personal Allowance?
Valid Gift Aid payments reduce adjusted net income at their grossed-up value. This can restore part or all of a tapered Personal Allowance, subject to the wider Gift Aid rules.
Will the estimated refund or balance match HMRC?
Not necessarily. The calculator subtracts entered tax payments from its supported liability. HMRC can include tax codes, other charges, credits, payments on account, interest and filing details not collected here.
Official Sources and Method Review
Rates, thresholds and calculation order reviewed July 29, 2026. The page uses annual 2026/27 values, not 2025/26 rates or announced 2027/28 savings-rate changes.
Disclaimer: This calculator provides an educational estimate for the 2026/27 UK tax year. It is not tax, pension, legal or investment advice and does not replace HMRC, compliant filing software or a qualified professional review.