Employee Income Tax Calculator UK 2025/26

Employee income tax calculator UK 2025/26 — Calculate exact tax on PAYE earnings. Personal allowance £12,570, bands 20/4

Quick answer: UK employee income tax 2025/26: 20% on £12,571-£50,270, 40% on £50,271-£125,140, 45% above £125,140. Personal allowance £12,570 (tapers above £100k). Plus 8% NI (£12,570-£50,270), 2% above.
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

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If you're a UK employee paid through PAYE, your income tax is calculated automatically each pay period. This calculator shows your exact tax liability, NI, and take-home using the official 2025/26 HMRC rates and thresholds.

How employee income tax calculator works in 2025/26

How UK employee income tax is calculated 2025/26:

  1. Take gross annual salary
  2. Subtract Personal Allowance (£12,570 — tapers £1 per £2 over £100k, gone at £125,140)
  3. Apply income tax bands to remainder: 20% basic, 40% higher, 45% additional
  4. Calculate NI separately on gross: 8% (£12,570-£50,270), 2% above £50,270
  5. Take-home = gross - income tax - NI - any other deductions (pension, student loan)

Effective tax rates by salary band 2025/26:

SalaryIncome taxNITake-homeEffective
£20,000£1,486£594£17,92010.4%
£35,000£4,486£1,794£28,72017.9%
£60,000£11,432£3,210£45,35824.4%
£100,000£27,432£4,011£68,55731.4%
£150,000£54,332£5,011£90,65839.6%

Worked example: £25k entry-level

£25,000 - £12,570 PA = £12,430 taxable. 20% × £12,430 = £2,486 tax. NI: £12,430 × 8% = £994.40. Take-home £21,520.

Gross: £25,000 → Take-home: £21,520.00/year (£1,793.33/month)

Worked example: £42k professional (basic rate)

£42,000 - £12,570 = £29,430 taxable. 20% = £5,886. NI £29,430 × 8% = £2,354. Take-home £33,760.

Gross: £42,000 → Take-home: £33,760.00/year (£2,813.33/month)

Worked example: £75k senior (higher rate kicks in)

Taxable £62,430. £37,700 at 20% = £7,540. £24,730 at 40% = £9,892. Total IT £17,432. NI £37,700 × 8% + £24,730 × 2% = £3,016 + £494 = £3,510. Take-home £54,058.

Gross: £75,000 → Take-home: £54,058.00/year (£4,504.83/month)

Frequently asked questions

What's the personal allowance for UK employees?
£12,570 for 2025/26 — frozen since 2021/22. You pay no income tax on the first £12,570 of earnings. Tapers above £100,000 (lose £1 per £2 over) — fully gone at £125,140.
Are PAYE rates same as Self Assessment?
Income tax rates and bands are identical. PAYE collects via employer; SA collects via direct return. Self-employed pay Class 2 + 4 NI (different from employee Class 1) but income tax is same calculation.
Does this include student loan?
No — student loan is separate. Plan 1: 9% above £24,990. Plan 2: 9% above £28,470. Plan 4: 9% above £31,395. Plan 5: 9% above £25,000. Postgrad: 6% above £21,000. Subtract from take-home.
What about pension contributions?
Auto-enrolment is 5% employee on £6,240-£50,270 qualifying earnings — saves 28% (basic) or 42% (higher) effective. Net pay arrangement (most pensions) deducts BEFORE tax. Salary sacrifice deducts BEFORE tax + NI.
How does PAYE handle multiple jobs?
Main job uses your full PA (1257L code). Second job uses BR code (basic rate 20% on every £). Year-end reconciliation via tax code adjustment if combined income crosses tax bands.
Why does my payslip differ from this calculator?
Possible: K-tax code, benefit-in-kind (company car, private medical), salary sacrifice, student loan, court order, year-end PAYE reconciliation. Compare YTD figures to monthly average for accuracy.
Is Scottish income tax different?
Yes — Scottish residents (S-prefix tax codes) have 6 bands: 19% (£12,571-£14,876), 20% (£14,877-£26,561), 21% (£26,562-£43,662), 42% (£43,663-£75,000), 45% (£75,001-£125,140), 48% (above). Higher rate kicks in at £43,662 vs England's £50,270.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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