UK Income Tax Calculator — Calculate Your Take-Home Pay
Free UK income tax calculator for tax year 2025-26. Calculate income tax National Insurance and take-home pay based on your salary. Updated with current HMRC rates.
Understanding your UK tax liability is crucial for financial planning whether you are employed self-employed or a contractor. The UK uses a progressive tax system with rates from 20% to 45% on different bands of income. National Insurance contributions add further deductions. Our calculator shows you exactly how much you keep after all deductions so you can plan your budget accurately.
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Key Information
| Parameter | Details |
|---|---|
| Personal Allowance (2025-26) | £12,570 |
| Basic Rate (20%) | £12,571 - £50,270 |
| Higher Rate (40%) | £50,271 - £125,140 |
| Additional Rate (45%) | Over £125140 |
Calculate your UK take-home pay
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Use Calculator NowFrequently Asked Questions
How much tax do I pay on £40000 UK salary?
On a £40000 salary your personal allowance is £12570 (tax-free). You pay 20% basic rate on £27430 = £5486 in income tax. National Insurance adds approximately £3500. Your total deductions are about £8986 giving a take-home pay of approximately £31014 per year or £2585 per month.
What is the 40% tax threshold UK?
The higher rate tax of 40% kicks in at £50271 for the 2025-26 tax year. Only the income above this threshold is taxed at 40% not your entire salary. So on a £60000 salary you pay 20% on £37700 and 40% on £9730 above the threshold. Your effective tax rate is much lower than 40%.
How does National Insurance work?
National Insurance (NI) is a separate deduction from income tax. Employees pay 8% on earnings between £12570 and £50270 and 2% on earnings above that. Employers also pay 13.8% NI on your salary which does not come out of your pay. NI contributions count toward your State Pension entitlement.
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Last updated: 24 March 2026