See exactly how your income splits across tax bands — with a visual breakdown.
In the 2026/27 tax year you pay no income tax on the first £12,570 you earn, 20% on income from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above that. Only the slice of income inside each band is taxed at that band's rate. Above £100,000 the personal allowance is withdrawn by £1 for every £2 earned, creating a 60% marginal Income Tax rate between £100,000 and £125,140. Scotland sets its own bands.
Beyond your own figure: UKCalc derives the full marginal-rate curve, including where a pay rise is taxed at more than 60% — the marginal tax rate map.
Checking the underlying figures. See the Personal Allowance, the band limits and the employee National Insurance rates this calculator applies, each with its official source and the date UKCalc last checked it, on the 2026/27 rates and thresholds UKCalc uses.
Budget 2026, 28 October 2026. Changes to tax bands, allowances or National Insurance are checked against the official HM Treasury and HMRC documents before this calculator is updated. Follow them on UKCalc’s Budget 2026 hub, and see take-home pay at 14 salaries before and after on the Budget 2026 take-home pay table.
| Band | Income in Band | Rate | Tax |
|---|---|---|---|
| Personal Allowance | — | 0% | £0 |
| Basic Rate | — | 20% | — |
| Higher Rate | — | 40% | — |
| Total Income Tax | — | ||
Income tax is charged on a marginal basis — you pay each rate only on the slice of income that falls within that band. Crossing into the higher-rate band does not mean paying 40% on your entire salary; it means paying 40% only on the earnings above £50,270.
If your income exceeds £100,000, your personal allowance is withdrawn at £1 for every £2 above £100,000. At £125,140 the allowance is fully gone. This creates a 60% marginal Income Tax rate between £100,000 and £125,140 — making pension contributions especially valuable for earners in this band.
The UK income tax system for 2026/27 uses a tiered band structure where different slices of your income are taxed at progressively higher rates. The first £12,570 (the Personal Allowance) is tax-free — a benefit available to all UK taxpayers up to £100,000 of income, after which it tapers away by £1 for every £2 of income (fully removed at £125,140).
The basic rate of 20% applies to taxable income between £12,571 and £50,270, covering most UK workers. Above £50,270, the higher rate of 40% kicks in until £125,140, and the additional rate of 45% applies above that. Critically, only the slice within each band is taxed at that rate — earning £60,000 doesn't mean you pay 40% on the whole salary; you pay 0% on the first £12,570, 20% on the next £37,700, and 40% only on the £9,730 above £50,270.
National Insurance for employees is calculated separately: 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Combining tax and NI, the marginal rate (what each extra pound costs in deductions) is 28p in the basic-rate band, 42p in the higher-rate band, 62p from £100,000 to £125,140 (the disappearing Personal Allowance, taxed at 40%), and 47p above £125,140. Pension contributions reduce taxable income at your marginal rate — the most efficient use of pension sacrifice is inside the Personal Allowance taper: each £1,000 sacrificed saves about £620 of Income Tax and employee National Insurance anywhere between £100,000 and £125,140.
For the 2026/27 tax year, key allowances and thresholds you should know: the Personal Savings Allowance (£1,000 for basic-rate, £500 for higher-rate, £0 for additional-rate taxpayers), the Dividend Allowance (£500), and the Capital Gains Tax annual exempt amount (£3,000). The Marriage Allowance lets you transfer £1,260 of unused Personal Allowance to a basic-rate-paying partner, worth up to £252/year. Bonuses, overtime, and irregular income are all taxed at your marginal rate via PAYE, so a higher-rate payslip can produce a noticeable shock to take-home in months you earn extra.
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What this calculator applies, where each figure comes from, and what it does not model. Official figures last checked on 2 September 2026.
Official figures this calculator applies
UKCalc assumptions — not official figures
Jurisdiction. Income tax on earnings is devolved to Scotland, which has its own bands and rates — GOV.UK: Scottish Income Tax. National Insurance is not devolved and is identical across the UK. Rates and thresholds are set by HMRC and normally change on 6 April.