UK Income Tax Calculator 2025/26 – Accurate Take-Home Pay
The most complete free UK income tax calculator for 2025/26. Covers PAYE, pension (salary sacrifice & relief at source), student loan (all plans), Marriage Allowance, Scottish rates, dividends, and the £100k Personal Allowance taper.
UK Income Tax Bands 2025/26 – England, Wales & NI
The UK uses a progressive tax system — you only pay each rate on the portion of income that falls within that band. The Personal Allowance is frozen at £12,570 until April 2028. Earnings above £100,000 trigger the Personal Allowance taper, creating an effective 60% marginal rate between £100,000 and £125,140.
| 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% |
Scottish Income Tax Bands 2025/26
Scottish taxpayers pay income tax at rates set by the Scottish Parliament. Six bands apply — the same Personal Allowance applies but different thresholds and rates above it. Scottish NI contributions are the same as the rest of the UK.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £14,876 | 19% |
| Scottish basic rate | £14,877 – £26,561 | 20% |
| Intermediate rate | £26,562 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Pension: Salary Sacrifice vs Relief at Source
Your pension scheme type significantly affects your take-home pay calculation. Under salary sacrifice, your contribution is deducted before tax and NI are calculated — reducing both your income tax and your National Insurance. Under relief at source, contributions come from net pay and your pension provider claims basic rate relief directly from HMRC. Higher rate taxpayers on relief at source must claim the additional 20% via Self Assessment — the calculator shows the base deduction only.
Student Loan Repayment Plans 2025/26
- Plan 1 (started before Sept 2012, or Scottish/NI pre-2012): 9% above £26,065/year
- Plan 2 (started Sept 2012–July 2023 in England/Wales): 9% above £28,470/year
- Plan 4 (Scottish students from 2012 onwards): 9% above £32,745/year
- Plan 5 (started August 2023+ in England): 9% above £25,000/year
- Postgraduate loan: 6% above £21,000/year — runs simultaneously with undergraduate repayments
The £100k trap: For every £2 earned above £100,000, £1 of Personal Allowance is lost. This creates a 60% effective marginal rate between £100,000–£125,140. Making additional pension contributions or Gift Aid donations can bring adjusted net income below £100,000 and restore your full allowance — the calculator shows this automatically.
Marriage Allowance
If your partner earns below £12,570 and you are a basic rate taxpayer, they can transfer £1,260 of their unused Personal Allowance to you — saving up to £252/year. Neither partner can be a higher or additional rate taxpayer to qualify. The saving is shown in the results as a positive line, reflecting reduced tax due.
Dividend Income Tax 2025/26
The Dividend Allowance for 2025/26 is £500. Dividends above this are taxed at 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional rate). Dividends are stacked on top of your salary when determining which band they fall into — so a £40,000 salary plus £15,000 dividends pushes most of the dividends into the higher rate band. The calculator handles this stacking automatically.