Tax Calculators UK 2025/26

Complete Guide to UK Taxes 2025/26

Understanding UK tax can be complex, with multiple taxes affecting individuals and businesses throughout their financial lives. From income tax and National Insurance deducted from wages to capital gains tax on investments and inheritance tax on estates, the UK tax system touches almost every aspect of personal and business finances. Our free tax calculators are designed specifically for UK taxpayers, using the latest HMRC rates, thresholds, and regulations for the 2025/26 tax year.

All calculators are updated immediately following Budget announcements and reflect the significant changes introduced in recent Budgets, including increased employer National Insurance, reduced CGT and dividend allowances, and frozen income tax thresholds that continue to affect taxpayers through fiscal drag.

UK Income Tax Rates 2025/26

Income tax is the most significant tax for most UK workers. The rates for England, Wales, and Northern Ireland are set by the UK government, while Scotland sets its own rates with more granular bands. Understanding which band your income falls into is essential for tax planning.

Band	Taxable Income	Tax 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 Rates 2025/26

Scotland sets its own income tax rates and bands, which differ from the rest of the UK. Scottish taxpayers have six bands compared to the rest of the UK's four, with different thresholds and rates. Your tax code will show 'S' if you're a Scottish taxpayer.

Band	Taxable Income	Tax Rate
Personal Allowance	Up to £12,570	0%
Starter Rate	£12,571 - £14,876	19%
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%

National Insurance Contributions 2025/26

National Insurance is a social security contribution that funds state benefits including the State Pension, NHS, and unemployment benefits. Both employees and employers pay NI, though at different rates. The 2025/26 tax year saw significant changes to employer NI rates and thresholds.

Contribution Type	Rate	Threshold/Earnings Band
Employee Class 1 (Primary)	8%	£12,570 - £50,270
Employee Class 1 (Above UEL)	2%	Above £50,270
Employer Class 1 (Secondary)	15%	Above £5,000
Self-Employed Class 4	6%	£12,570 - £50,270
Self-Employed Class 4 (Above)	2%	Above £50,270
Self-Employed Class 2	Abolished	N/A

Capital Gains Tax Rates 2025/26

Capital Gains Tax is payable when you sell or dispose of an asset that has increased in value. The annual exempt amount has been significantly reduced in recent years, meaning more people now need to pay CGT on their investments and property sales.

Asset Type	Basic Rate Taxpayer	Higher/Additional Rate Taxpayer
Residential Property	18%	24%
Carried Interest	18%	28%
Other Assets (Shares, etc.)	10%	20%
Business Asset Disposal Relief	10% (up to £1m lifetime limit)

Annual Exempt Amount: The CGT annual exempt amount for 2025/26 is just £3,000, reduced from £6,000 in 2024/25 and £12,300 in 2022/23. This means even modest gains may now be subject to tax, making careful record-keeping essential.

Dividend Tax Rates 2025/26

Dividends from shares are taxed at different rates to other income, and receive a separate tax-free allowance. The dividend allowance has been significantly reduced, increasing the tax burden on shareholders and company directors who pay themselves through dividends.

Tax Band	Dividend Tax Rate	Equivalent Income Tax Rate
Dividend Allowance	0% (first £500)	0%
Basic Rate	8.75%	20%
Higher Rate	33.75%	40%
Additional Rate	39.35%	45%

Value Added Tax (VAT)

VAT is a consumption tax charged on most goods and services. Businesses with taxable turnover above £90,000 must register for VAT and charge it on their sales. Understanding VAT rates and calculations is essential for both businesses and consumers.

Corporation Tax 2025/26

Limited companies pay corporation tax on their profits. The rate depends on the level of profit, with a marginal relief system for companies with profits between £50,000 and £250,000.

Profit Level	Corporation Tax Rate	Effective Rate with Marginal Relief
Up to £50,000 (Small Profits Rate)	19%	19%
£50,001 - £250,000	Marginal Relief	19% - 25% (tapered)
Over £250,000 (Main Rate)	25%	25%

Inheritance Tax (IHT) 2025/26

Inheritance Tax is charged on estates above the nil-rate band when someone dies. Careful estate planning can significantly reduce or eliminate IHT liability.

Allowance/Rate	Amount	Notes
Nil-Rate Band	£325,000	Frozen until 2028
Residence Nil-Rate Band	£175,000	When passing home to direct descendants
Transferable Nil-Rate Band	Up to £325,000	Unused allowance transfers to surviving spouse
Standard IHT Rate	40%	On estate above thresholds
Reduced Rate	36%	If 10%+ of estate left to charity

Married couples and civil partners can combine their allowances, potentially leaving up to £1,000,000 tax-free (£325,000 + £175,000 each). The residence nil-rate band tapers for estates over £2 million, reducing by £1 for every £2 over this threshold.

Key Tax Deadlines for 2025/26

Missing tax deadlines can result in penalties and interest charges. Here are the key dates to remember for the 2025/26 tax year:

Deadline	Date	What's Due
Tax Year Start	6 April 2025	2025/26 tax year begins
Register for Self-Assessment	5 October 2026	New self-employed must register by this date
Paper Tax Return	31 October 2026	Submit paper returns for 2025/26
Online Tax Return	31 January 2027	Submit online returns for 2025/26
Pay Tax Owed	31 January 2027	Balance of tax due for 2025/26
Second Payment on Account	31 July 2027	Second POA for 2026/27

Why Use Our Tax Calculators?

• HMRC Compliant: All calculations use official HMRC rates, thresholds, and methodology
• Always Updated: Rates updated within 24 hours of any Budget or policy changes
• Free to Use: No registration required, no usage limits, completely free
• Privacy First: All calculations performed locally in your browser - we don't store your data
• Educational: Clear breakdowns show exactly how your tax is calculated step-by-step
• Mobile Friendly: Works perfectly on phones, tablets, and desktop computers
• Scottish Tax Support: Correctly calculates Scottish income tax rates for Scottish taxpayers
• Multiple Tax Years: Compare calculations across different tax years for planning purposes

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