Know Your Tax
Calculate your income tax, National Insurance, student loans, pension tax relief, and estimate the hidden taxes in your everyday spending.
Scotland has higher income tax rates and more tax bands
Personal/SIPP pension: Basic rate relief added automatically, higher rate claimed via self-assessment
Under 25 in approved apprenticeship
Employer pension contributions are tax-free for the employee
Tax year 2025/2026 rates: This calculator uses the latest UK income tax and National Insurance thresholds. Your personal allowance reduces by £1 for every £2 you earn over £100,000.
Pension tax relief: With "Relief at Source", basic rate tax relief is added to your pension automatically. Higher and additional rate taxpayers can claim extra relief through self-assessment. With "Net Pay", contributions are deducted before tax.
Student loans: Repayments are based on your income above the threshold for your plan type. Plan 1, 2, and 4 charge 9% above threshold; Postgraduate loans charge 6%.
Tax Codes: Your tax code tells your employer how much tax-free income you're entitled to. A wrong code could mean under or over-paying tax. Check your latest payslip or P60.
High Income Child Benefit Charge: If you or your partner earn over £50,000, you may have to pay back some or all of your Child Benefit through tax. Between £50,000 and £60,000, this creates an effective marginal tax rate of over 60% - one of the highest in the UK tax system!
Effective Tax Rate: The average percentage of your total income that goes to tax. Calculated as: (Total Tax Paid ÷ Gross Income) × 100. This includes Income Tax, National Insurance, Student Loan repayments, and Child Benefit charges.
Marginal Tax Rate: The tax rate applied to your next pound of income. This is crucial for understanding how much of a pay rise you'll actually keep. For example, if your marginal rate is 42% (higher rate taxpayer), a £1,000 bonus means £420 in tax and only £580 in your pocket. Watch out for the 60%+ trap between £50,000-£60,000 with Child Benefit!
This calculator is for informational purposes only and does not constitute financial advice.