UK Tax Calculator
Estimate your 2024/25 income tax, National Insurance, and take-home pay.
How the UK Tax Calculator Works
Our UK tax calculator estimates your 2024/25 income tax and National Insurance contributions based on your gross salary, country within the UK, and pension contributions. Enter your details to see your take-home pay, effective tax rate, marginal rate, and a band-by-band breakdown of how your tax is calculated.
How UK Income Tax Is Calculated
The UK uses a progressive tax system. Everyone gets a Personal Allowance — the amount you can earn tax-free. Income above this is taxed in bands, with each band charged at a progressively higher rate. For 2024/25, the Personal Allowance is £12,570.
Taxable Income = Gross Salary − Personal Allowance − Pension Relief
Each portion of taxable income is then taxed at the rate for its band:
Total Tax = Σ (Taxable Amount in Band × Band Rate)
As a worked example, someone in England earning £40,000 gets a £12,570 Personal Allowance, leaving £27,430 of taxable income. The first £37,700 above the allowance is taxed at 20%, so all £27,430 falls in the basic rate band. Income tax comes to £5,486. National Insurance at 8% on earnings between £12,570 and £40,000 adds £2,194.40. Total deductions are £7,680.40, giving a take-home pay of £32,319.60.
2024/25 Income Tax Bands — England, Wales & Northern Ireland
- Personal Allowance (0%): £0 – £12,570
- Basic Rate (20%): £12,571 – £50,270
- Higher Rate (40%): £50,271 – £125,140
- Additional Rate (45%): £125,140+
The Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means it reaches zero at £125,140, creating an effective 60% marginal rate in the £100,000–£125,140 range.
2024/25 Income Tax Bands — Scotland
- Personal Allowance (0%): £0 – £12,570
- Starter Rate (19%): £12,571 – £14,876
- Basic Rate (20%): £14,877 – £26,561
- Intermediate Rate (21%): £26,562 – £43,662
- Higher Rate (42%): £43,663 – £75,000
- Advanced Rate (45%): £75,001 – £125,140
- Top Rate (48%): £125,140+
Scotland has more tax bands and different rates from the rest of the UK. If you live in Scotland, your income tax is calculated using these Scottish bands, but your National Insurance is the same as elsewhere in the UK.
National Insurance Contributions (2024/25)
Class 1 National Insurance for employees is charged on earnings:
- 8% on earnings between £12,570 and £50,270 (the Primary Threshold to the Upper Earnings Limit)
- 2% on earnings above £50,270
National Insurance is separate from income tax and is deducted from your pay alongside PAYE income tax. The main rate was cut from 12% to 10% in January 2024, then to 8% in April 2024. Self-employed individuals pay Class 2 and Class 4 NI instead, which have different rates and thresholds.
Pension Contributions and Tax Relief
Pension contributions reduce your taxable income. With tax relief at source (the most common method), you contribute from your net pay and the government adds 20% basic-rate tax relief. With salary sacrifice, contributions are deducted from your gross pay before tax, saving you income tax and National Insurance. Higher and additional rate taxpayers can claim further relief via self-assessment.
What This Calculator Does Not Include
- Student loan repayments: Plan 1 (9% above £24,990), Plan 2 (9% above £27,295), Plan 4 (9% above £32,210), Plan 5 (9% above £25,000), Postgraduate (6% above £21,000).
- Benefits in kind: Company cars, private medical insurance, and other benefits are taxed separately.
- Dividend income: Taxed at different rates (8.75%, 33.75%, 39.35%) with a £500 dividend allowance.
- Capital gains: Taxed at 10% (basic rate) or 20% (higher rate) with a £3,000 annual allowance.
- Council Tax: A local tax based on your property band, not income.
Frequently Asked Questions
The standard Personal Allowance for 2024/25 is £12,570. This is the amount of income you can earn before paying any income tax. The allowance is reduced by £1 for every £2 of income above £100,000, meaning it disappears entirely at £125,140.
National Insurance (NI) is a payroll tax that funds state benefits and the NHS. For employees (Class 1 NI) in 2024/25, you pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Self-employed people pay different Class 2 and Class 4 rates.
Scotland has its own income tax bands with more brackets and different rates. For 2024/25, Scotland uses a Starter rate of 19%, Basic rate of 20%, Intermediate rate of 21%, Higher rate of 42%, Advanced rate of 45%, and Top rate of 48%. The rest of the UK uses 20%, 40%, and 45%.
No, this calculator estimates income tax and National Insurance only. Student loan repayments (Plan 1, Plan 2, Plan 4, or Plan 5) are deducted from your pay at 9% of income above the relevant threshold. Postgraduate loans are repaid at 6% above their threshold.