How UK Income Tax is worked out
Income Tax is charged on the part of your income above the tax-free personal allowance. For 2026/27 the standard personal allowance is £12,570. Income above that is taxed in bands — 20% at the basic rate, 40% at the higher rate and 45% at the additional rate. National Insurance is charged separately and is not included here.
If you earn more than £100,000 your personal allowance is gradually withdrawn (by £1 for every £2 over £100,000), which creates an effective 60% marginal rate between £100,000 and £125,140.
2026/27 Income Tax bands (England, Wales & N. Ireland)
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland sets its own bands, from a 19% starter rate up to a 48% top rate. Select Scotland in the calculator to see Scottish figures.
Frequently asked questions
How much Income Tax will I pay on £45,000?
On a £45,000 salary in England, Wales or NI for 2026/27, Income Tax is £6,486 — 20% of the £32,430 that sits above the £12,570 personal allowance. National Insurance is charged on top of this.
What is the personal allowance for 2026/27?
£12,570. It is reduced by £1 for every £2 you earn over £100,000 and is gone entirely at £125,140.
What are the Income Tax bands for 2026/27?
In England, Wales and NI: 20% basic rate up to £50,270, 40% higher rate up to £125,140, and 45% additional rate above that. Scotland has six bands from 19% to 48%.
Is Income Tax different in Scotland?
Yes. Scotland has its own bands and rates (19% to 48%), so the tax on the same salary differs. National Insurance is the same UK-wide.
Does this include National Insurance?
No. This tool shows Income Tax only. Use the Take-Home Pay calculator to see Income Tax and National Insurance together.