How do you calculate where my tax goes?

We add your annual income tax and employee National Insurance for the 2025/26 tax year using HMRC bands (Personal Allowance £12,570, basic rate 20%, higher rate 40%, additional rate 45% above £125,140; NI 8% between £12,570 and £50,270, 2% above). We then apply the Treasury's published spending split to your personal contribution to show how much of your money goes to each department.

Is the spending breakdown the same as the HMRC annual tax summary letter?

Yes — the spending categories used here mirror the official HMRC annual tax summary, which HMRC sends to PAYE taxpayers and self-assessment customers. We use the same Public Spending Statistics methodology so the percentages match the government's own published figures.

How much tax goes to defence?

About 5.4% of UK government spending goes on defence — armed forces, equipment, intelligence services and military pensions. On a £35,000 UK salary this works out at around £339 per year.

Why is debt interest so high?

National Debt interest now accounts for about 9.2% of all UK government spending — more than the entire defence budget. This has risen sharply since 2022 due to higher interest rates and inflation-linked gilts. It's the third largest line item after welfare and the NHS.

🇬🇧 UK Tax Year 2025/26 · HMRC-Verified Data

Where Does Your Tax Go?

Enter your salary and see exactly where every pound of your UK income tax and National Insurance is spent — by the NHS, schools, defence, welfare and every other department.

Last reviewed: 6 April 2026 by Mustafa Bilgic, UK Tax Specialist · ✓ HMRC Public Spending Statistics 2025/26

Calculate your personal tax breakdown

Enter your annual gross salary. We'll calculate your 2025/26 income tax + employee National Insurance and show you exactly where it goes.

Uses 2025/26 HMRC rates: Personal Allowance £12,570 · Basic 20% · Higher 40% · Additional 45% · NI 8%/2%

Your annual contribution to the UK government

£0

Enter your salary above to see your personal breakdown

Where every pound is spent

Click any category to learn more. Bars show your personal contribution based on the official 2025/26 spending split.

What does your contribution buy in real terms?

Your personal tax money translated into things you can actually picture

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— appointmentsNHS hospital or GP appointments your contribution funds (£150 each)

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— school daysSchool days for one child funded by your education contribution (£25 per day)

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— minutesMinutes of UK military operations your defence contribution funds (£100k/min)

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— hoursPolice officer working hours your safety contribution covers (£28/hr)

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— rail milesSubsidised UK rail miles your transport contribution funds (£0.20/mile)

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— pension daysDays of one full state pension your welfare contribution provides (£31/day)

📊 Methodology

This calculator combines two official UK government sources to show where your money goes:

Income tax & NI calculation: 2025/26 HMRC bands — Personal Allowance £12,570, basic 20%, higher 40%, additional 45% over £125,140. Employee NI: 8% on £12,570–£50,270, 2% above.
Spending split: HM Treasury Public Spending Statistics 2025/26 + the official HMRC annual tax summary letter methodology.
Real-terms benchmarks: NHS appointment cost £150 (NHS Reference Costs), school day £25 (DfE per-pupil ÷ 190 days), defence £100k/minute (£52bn ÷ 525,600 minutes), state pension £31/day (£11,502/year).
Excludes: VAT, council tax, fuel duty, capital gains and other indirect taxes — only the two taxes that come straight off your payslip are counted here.

Updated annually each April when HMRC publishes new bands. Last verified: 6 April 2026.

Frequently Asked Questions

Where does my UK income tax actually get spent?

For 2025/26 the largest share goes to Welfare and Pensions (~23.8%), followed by the NHS (21.6%), Education (10.7%), National Debt Interest (9.2%) and Defence (5.4%). The remaining ~35% covers public order, transport, business, government admin, housing, environment, culture, overseas aid and local government grants.

Is this the same as the HMRC annual tax summary letter?

Yes. We use the same HM Treasury Public Spending Statistics methodology HMRC uses for the annual tax summary it sends to PAYE and self-assessment customers each autumn. The percentages match the official figures published by HM Treasury.

Does this include VAT and council tax?

No. This calculator only tracks income tax and employee National Insurance — the two taxes that come straight off your payslip. VAT, council tax, fuel duty and other indirect taxes vary by household spending and are not included.

Why is debt interest higher than the defence budget?

National Debt interest now accounts for ~9.2% of all UK government spending — almost twice the defence budget of 5.4%. It has risen sharply since 2022 due to higher interest rates and inflation-linked gilts. It is the third largest line item after welfare and the NHS.

How much of my tax goes to the NHS?

Approximately 21.6% of your income tax + NI funds the NHS and wider health spending. On a £35,000 salary that's around £1,357 a year — enough to fund roughly 9 hospital or GP appointments at the average NHS cost of £150 each.

Are these figures accurate for 2025/26?

Yes. The percentages come from HM Treasury Public Spending Statistics for 2025/26 and tax bands use HMRC's published thresholds. The Personal Allowance (£12,570) is frozen until 2028 under the current freeze announced in 2021.