UK Tax Calculator 2025/26 — All Tax Rates & Bands

Effective Tax Rate Calculator

Enter your annual income to see your effective tax rate — the real percentage of your income that goes to tax and National Insurance.

1. Income Tax Rates (England, Wales & Northern Ireland)

Income tax is the largest tax most people pay. The rates below apply to England, Wales and Northern Ireland for the 2025/26 tax year. Scotland has its own rates (see below).

Note: The personal allowance reduces by £1 for every £2 of income over £100,000, reaching £0 at £125,140.

2. Scottish Income Tax Rates 2025/26

If you live in Scotland, you pay Scottish income tax rates set by the Scottish Parliament. These rates differ from the rest of the UK.

Scotland has seven income tax bands for 2025/26: 0% personal allowance up to £12,570, 19% starter rate on £12,571–£14,876, 20% basic rate on £14,877–£26,561, 21% intermediate rate on £26,562–£43,662, 42% higher rate on £43,663–£75,000, 45% advanced rate on £75,001–£125,140, and 48% top rate over £125,140.

3. National Insurance Rates 2025/26

National Insurance contributions fund the state pension and certain benefits. Rates differ for employees, employers and the self-employed.

Employee (Class 1)

Employer (Class 1)

Employers pay 0% on earnings up to the £5,000 secondary threshold and 15% on earnings above £5,000.

Self-Employed (Class 4)

Self-employed Class 4 NI is 0% on profits up to the £12,570 lower profits limit, 6% on profits from £12,570 to £50,270, and 2% on profits over £50,270.

Class 2 NI: Voluntary for self-employed from 2024/25. If you choose to pay, the rate is £3.45 per week.

4. Corporation Tax Rates 2025/26

Corporation tax applies to company profits. Since April 2023, a two-tier system applies based on profit levels.

Corporation tax is 19% on small profits of £0–£50,000, tapers between 19% and 25% for profits from £50,001 to £250,000 under marginal relief, and 25% as the main rate on profits over £250,000.

Marginal relief formula: For profits between £50,000 and £250,000, marginal relief reduces the effective rate gradually from 25% down towards 19%. The marginal relief fraction is 3/200.

5. Capital Gains Tax Rates 2025/26

Capital gains tax applies when you sell assets for a profit. Rates changed from 30 October 2024 following the Autumn Budget.

Capital gains on most assets (shares, funds, etc.) and on residential property (not your main home) are taxed at 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. Business Asset Disposal Relief and Investors' Relief both apply a 14% rate, rising to 18% from April 2026.

Annual Exempt Amount: £3,000 per person for 2025/26. Gains below this are tax-free.

6. Inheritance Tax Rates 2025/26

Inheritance tax (IHT) is charged on estates above certain thresholds when someone dies.

The nil-rate band is £325,000 and the residence nil-rate band is £175,000, giving a combined individual threshold of £500,000 (up to £1,000,000 for a married couple with both allowances transferable). Estate value above these thresholds is taxed at 40%, reduced to 36% if 10% or more of the estate is left to charity.

RNRB taper: The residence nil-rate band reduces for estates worth over £2 million, by £1 for every £2 above £2 million.

7. Stamp Duty Land Tax (SDLT) Rates 2025/26

Stamp duty is paid when you buy property in England or Northern Ireland. Rates reverted from 1 April 2025 after the temporary thresholds ended.

Standard Residential Rates (from 1 April 2025)

Standard residential SDLT rates from 1 April 2025: 0% up to £125,000, 2% on £125,001–£250,000, 5% on £250,001–£925,000, 10% on £925,001–£1,500,000, and 12% over £1,500,000.

Additional Property Surcharge

The additional property surcharge adds a higher rate on each portion: 5% up to £125,000, 7% on £125,001–£250,000, 10% on £250,001–£925,000, 15% on £925,001–£1,500,000, and 17% over £1,500,000.

First-time buyers: No SDLT on the first £300,000 of a property up to £500,000 (from 1 April 2025). 5% applies on the portion from £300,001 to £500,000.

8. VAT Rates 2025/26

Value Added Tax is charged on most goods and services sold in the UK.

VAT is charged at 20% (standard rate) on most goods and services, 5% (reduced rate) on home energy, child car seats and sanitary products, and 0% (zero rate) on most food, children's clothes, books and newspapers. Insurance, education, health services and financial services are exempt.

VAT registration threshold: £90,000 turnover (from 1 April 2024). Businesses below this can register voluntarily.

9. Dividend Tax Rates 2025/26

Dividends are taxed at special rates that are lower than income tax rates. A £1,000 dividend allowance applies before tax is due.

Dividend tax rates are 0% within the personal allowance or dividend allowance, 8.75% basic rate (up to £50,270), 33.75% higher rate (£50,271–£125,140), and 39.35% additional rate (over £125,140).

Dividend Allowance: The first £1,000 of dividends is tax-free in 2025/26 (increased from £500 in 2024/25). This allowance uses up your basic or higher rate band.

10. Student Loan Repayment Rates 2025/26

Student loan repayments are deducted from your salary once you earn above your plan's threshold. These are not technically a tax, but they reduce your take-home pay.

Student loan repayment thresholds and rates: Plan 1 (pre-September 2012) £24,990 at 9%, Plan 2 (post-September 2012) £27,295 at 9%, Plan 4 (Scotland) £31,395 at 9%, Plan 5 (from September 2023) £25,000 at 9%, and Postgraduate Loan £21,000 at 6%.

Note: Repayments are 9% (or 6%) of income above the threshold, not on total earnings. Plan 2 loans are written off after 30 years; Plan 5 after 40 years.

Related Calculators

Tax Bracket Calculator | Salary Calculator | Tax Calculator | NI Calculator | CGT Calculator | Tax Thresholds 2025/26

Frequently Asked Questions