1. What is UK Income Tax?

UK Income Tax is a tax you pay on your earnings. The amount you pay depends on how much of your taxable income is above your Personal Allowance and which tax band(s) it falls into.

2. How Does the Calculator Work?

The calculator uses the UK tax band rates:

Where:

• Personal Allowance: Up to £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

3. Current UK Tax Bands

2024-2025 Tax Year:

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

4. Using the Calculator

Tips: Enter your annual salary before tax and select the appropriate tax year. The calculator will show how much income tax you'll pay.

5. Frequently Asked Questions (FAQ)

Q1: Is National Insurance included?
A: No, this calculator only estimates Income Tax. National Insurance is calculated separately.

Q2: What about Scottish tax rates?
A: Scotland has different tax bands. This calculator uses rates for England, Wales and Northern Ireland.

Q3: How often is tax deducted?
A: Typically monthly through PAYE if you're an employee.

Q4: Are bonuses taxed differently?
A: Bonuses are taxed as income at your marginal rate.

Q5: What if I have multiple income sources?
A: This calculator is for employment income only. Other income may be taxed differently.