1. What is the UK Tax Calculation?

The UK tax system uses a progressive tax structure with different rates applied to portions of your income. For the 2025/2026 tax year, there are three main tax bands: basic rate (20%), higher rate (40%), and additional rate (45%).

2. How Does the Calculator Work?

The calculator uses the UK tax formula:

Where:

• \( Income \) — Gross annual income (GBP)
• 12570 — Personal allowance (tax-free amount)
• 37700 — Basic rate threshold (20% tax)
• 74870 — Higher rate threshold (40% tax)
• 125140 — Additional rate threshold (45% tax)

Explanation: The calculation applies different tax rates to different portions of your income above the personal allowance.

3. Understanding UK Tax Bands

Details: For the 2025/2026 tax year:

• Personal Allowance: £12,570 (0% tax)
• Basic Rate: £12,571 to £50,270 (20% tax)
• Higher Rate: £50,271 to £125,140 (40% tax)
• Additional Rate: Over £125,140 (45% tax)

4. Using the Calculator

Tips: Enter your gross annual income in GBP. The calculator will automatically compute your tax liability based on the current UK tax bands for the 2025/2026 tax year.

5. Frequently Asked Questions (FAQ)

Q1: What is the personal allowance?
A: The personal allowance is the amount of income you can earn each tax year without paying any tax. For 2025/2026, this is £12,570.

Q2: Are there different tax bands in Scotland?
A: Yes, Scotland has different income tax bands and rates. This calculator uses the rates for England, Wales, and Northern Ireland.

Q3: Does this include National Insurance contributions?
A: No, this calculator only computes income tax. National Insurance is calculated separately.

Q4: What if my income is below the personal allowance?
A: If your income is below £12,570, you won't pay any income tax.

Q5: Are there any tax reliefs or deductions not included?
A: This calculator provides a basic estimate and doesn't account for specific tax reliefs, deductions, or allowances you might be eligible for.