UK Tax Rate Calculator

Find your Income Tax rate, tax band, marginal rate and effective rate for the 2026/27 tax year.

Enter Your Details

Enter your estimated annual income before Income Tax.
£
Standard allowance is £12,570. Tapers above £100,000.
▼ Advanced Options
Reduces taxable income and may affect Personal Allowance taper.

Your Tax Ladder

Enter your income details and click "Calculate Tax Rate" to see your tax ladder.

Example:

Income: £60,000 → Taxable: £47,430 → Tax: £9,486 → Marginal Rate: 40% → Effective Rate: 15.8%

UK Tax Rate Calculator

This UK Tax Rate Calculator helps you understand which Income Tax band applies to your income, what your marginal tax rate is, and what your effective tax rate is. It provides a clear breakdown of how much of your income is taxed at each rate.

What Are the UK Income Tax Rates?

The UK has a progressive Income Tax system. This means you pay more tax as your income increases, but only on the portion of income that falls into each band. For 2026/27, the main rates are:

Scotland has its own separate Income Tax bands and rates.

UK Income Tax Bands for 2026/27

For England, Wales and Northern Ireland, the 2026/27 Income Tax bands are:

For Scotland, the bands are: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%) and Top (48%).

How Does the UK Tax Rate Calculator Work?

The calculator follows this process:

  1. You enter your annual income.
  2. Your Personal Allowance is applied (standard £12,570, or custom).
  3. The remaining amount is your taxable income.
  4. Tax bands are applied progressively to your taxable income.
  5. Your marginal rate (the rate on your next pound of income) is identified.
  6. Your effective rate (total tax ÷ total income) is calculated.

What Is a Marginal Tax Rate?

Your marginal tax rate is the rate of Income Tax you pay on your next pound of taxable income. It is determined by which tax band your current income falls into. For example, if your taxable income is £45,000, your marginal rate is 40% (the higher rate), because any additional income would be taxed at that rate.

What Is an Effective Tax Rate?

Your effective tax rate is the average rate of Income Tax you pay across all your income. It is calculated as total Income Tax divided by total gross income, expressed as a percentage. This rate is usually lower than your marginal rate because some of your income is taxed at 0% (Personal Allowance) and lower rates.

What Is the Difference Between Marginal and Effective Tax Rate?

Marginal Tax Rate Effective Tax Rate
Rate on your next pound of income Average rate across all income
Determined by your highest tax band Calculated as total tax ÷ total income
Can be 20%, 40%, 45% (or Scottish rates) Usually lower than marginal rate
Used for planning extra earnings Used to understand overall tax burden

How Does the Personal Allowance Affect Your Tax Rate?

The Personal Allowance is the amount of income you can earn before paying Income Tax. For 2026/27, it is £12,570. If your income is below this, you pay no Income Tax. When your income exceeds the Personal Allowance, only the portion above the allowance is taxed.

What Happens If You Earn More Than £100,000?

If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means that between £100,000 and £125,140, you lose some or all of your Personal Allowance. This can create an effective marginal rate higher than 40% in this income range.

What Happens If You Earn More Than £125,140?

When your income exceeds £125,140, your Personal Allowance is reduced to £0. All of your income above the remaining allowance is taxed at the applicable rates. There is no additional "60% tax rate" — the higher effective rate in the £100,000-£125,140 range is simply the result of losing your Personal Allowance while still paying higher-rate tax.

Are Scottish Tax Rates Different?

Yes, Scotland has its own Income Tax rates and bands. Scottish taxpayers pay:

The thresholds for each band are different from the rest of the UK.

UK Tax Rate Example

Illustrative example only
Gross Income: £60,000 • 2026/27 • England • Standard Personal Allowance
Gross Income£60,000.00
Personal Allowance£12,570.00
Taxable Income£47,430.00
Basic Rate (20%)£37,700 → £7,540.00
Higher Rate (40%)£9,730 → £3,892.00
Total Income Tax £11,432.00
Marginal Tax Rate40%
Effective Tax Rate19.1%

Does National Insurance Affect Your Tax Rate?

National Insurance is separate from Income Tax. It is calculated on your earnings and goes towards the State Pension, NHS and other benefits. While it is a deduction from your pay, it is not included in your Income Tax rate. For a combined calculation, you can use the UK Tax and NI Calculator.

What This Calculator Does Not Include

Frequently Asked Questions

1. What is a UK Tax Rate Calculator? ▼
A UK Tax Rate Calculator helps you find your Income Tax band, marginal tax rate and effective tax rate based on your income. It shows how much of your income is taxed at each rate.
2. What are the UK Income Tax rates for 2026/27? ▼
For England, Wales and NI: 0% up to £12,570, 20% from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above £125,140. Scotland has different bands: 19%, 20%, 21%, 42%, 45% and 48%.
3. What is the marginal tax rate? ▼
Your marginal tax rate is the rate of Income Tax you pay on your next pound of taxable income. It's determined by which tax band your income falls into. For example, if you're in the higher rate band, your marginal rate is 40%.
4. What is the effective tax rate? ▼
Your effective tax rate is your total Income Tax liability divided by your total gross income, expressed as a percentage. It represents your average rate of Income Tax across all your income.
5. What is the Personal Allowance in the UK? ▼
The Personal Allowance is the amount of income you can earn before paying Income Tax. For 2026/27, it is £12,570. It tapers (reduces) if your adjusted net income exceeds £100,000.
6. What happens to the Personal Allowance above £100,000? ▼
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above £100,000. This means the allowance reaches £0 at £125,140.
7. What happens when income exceeds £125,140? ▼
When your income exceeds £125,140, your Personal Allowance is reduced to £0. All of your income is then subject to the applicable tax bands (basic, higher and additional rates for England/Wales/NI, or the Scottish bands).
8. Does Scotland have different Income Tax rates? ▼
Yes, Scotland has its own Income Tax rates and bands. Scottish taxpayers pay starter (19%), basic (20%), intermediate (21%), higher (42%), advanced (45%) and top (48%) rates. The thresholds are also different.
9. Is National Insurance included in my Income Tax rate? ▼
No, National Insurance is a separate deduction from your pay. It is not included in your Income Tax rate. For a combined view of both Income Tax and National Insurance, use a Tax and NI calculator.
10. Is this an official HMRC tax calculator? ▼
No, this calculator provides estimates only and is not an official HMRC calculator. It is designed to help you understand your tax position, but your actual tax liability may differ based on your personal circumstances.
⚠️ Important: This calculator provides estimates only and is not tax advice. It is not an official HMRC calculator. Actual tax liability can differ. Tax codes and personal circumstances can affect actual PAYE deductions. Adjusted net income can differ from gross income. Scottish Income Tax uses separate bands. Pension contributions and reliefs can affect the actual result. National Insurance is separate from Income Tax. Complex tax situations should be reviewed with an appropriately qualified professional.

Related Calculators

UK Tax Calculator UK Income Tax Calculator UK Tax and NI Calculator UK PAYE Tax Calculator UK After Tax Calculator UK Personal Tax Calculator Scotland Income Tax Calculator UK Tax Deduction Calculator

For a broader range of tax calculations, you may also find SmartTaxCalculator.com a useful resource for exploring different tax scenarios.