Enter Your Salary
2025/26 tax year · England & Wales rates
£
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Take-home pay
per year
Full deductions breakdown
Gross salary—
Pension contribution—
Taxable income—
Income tax—
National Insurance (employee)—
Student loan repayment—
Take-home pay—
⚠️ 60% tax trap: Your income is in the £100,000–£125,140 band where your personal allowance is being withdrawn. Effective rate = 60%. Consider salary sacrifice pension contributions to bring income below £100,000.
Effective income tax rate
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Total deductions rate
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Personal allowance used
£12,570
Tax Band Breakdown
UK Tax Rates 2025/26 — Explained
The UK uses a progressive tax system — you only pay the higher rate on income above each threshold, not on your whole salary.
Personal allowance: Everyone gets £12,570 of income completely tax-free. This is reduced by £1 for every £2 of income above £100,000, disappearing entirely at £125,140.
Basic rate (20%): Applies to income from £12,571 to £50,270. This is the tax band most workers fall into.
Higher rate (40%): Applies to income from £50,271 to £125,140. At this level, pension contributions become very tax-efficient.
National Insurance (2025/26): Employees pay 8% NI on earnings between £12,570 and £50,270, and 2% above that. Note: NI and income tax are calculated separately on different bases.