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UK Salary & Tax Calculator 2025/26 & 2026/27
Calculate your take-home pay after income tax, National Insurance, student loans, and pension contributions. Toggle between the current tax year and the new year starting 6 April 2026.
Standard tax code is 1257L. Find yours on a payslip or P60.
Scottish income tax
Scottish residents pay different income tax rates (not NI)
Student loan plan
Take-home pay
Take-home pay (monthly)
£2,393.30
17.9% effective total deduction rate
Personal allowance
£12,570.00
Adjusted gross
£35,000.00
Income tax (eff.)
12.8%
Total deductions
17.9%
Income tax breakdown
England / Wales / N. Ireland income tax rates 2025/26
| Band | Taxable income | Rate | Tax due |
|---|---|---|---|
| Personal Allowance | £12,570.00 | 0% | — |
| Basic Rate (20%) | £22,430.00 | 20% | £4,486.00 |
| Total income tax | £4,486.00 | ||
Where your salary goes
Annual breakdown of gross salary · £35,000.00
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Rates source: HMRC, verified 19 April 2026
How UK income tax works in 2025/26 and 2026/27
Income tax in the United Kingdom is charged in bands above a universal tax-free Personal Allowance of £12,570, frozen since April 2021 and now — following the Autumn Budget delivered by Chancellor Rachel Reeves on 26 November 2025 — scheduled to remain at £12,570 through to 5 April 2031. For taxpayers in England, Wales and Northern Ireland, the first £12,570 of income is tax-free; earnings between £12,571 and £50,270 are taxed at the basic rate of 20%; income between £50,271 and £125,140 falls into the higher-rate band at 40%; and any earnings above £125,140 attract the additional rate of 45%. The 2026/27 thresholds are identical to 2025/26 — no rUK income tax band moved. Wales sets its own rates under the Welsh Rates of Income Tax mechanism (identified on payslips by a C prefix on the tax code) but has voted to keep Welsh rates in parity with rUK for both years.
National Insurance Contributions operate separately from income tax. Employees pay Class 1 NICs at 8% on earnings between the Primary Threshold of £12,570 per year and the Upper Earnings Limit of £50,270, and at 2% on earnings above the UEL. These rates and thresholds are unchanged across 2025/26 and 2026/27 and are now frozen until 5 April 2031 alongside the income tax thresholds. Employer Class 1 secondary NICs are charged at 15% on earnings above a £5,000 secondary threshold — a significant employer-side increase imposed by the Autumn Budget 2024 (rate up from 13.8%, threshold down from £9,100) and retained in the 2025 Budget. The self-employed pay Class 4 NICs at 6% between £12,570 and £50,270 and 2% above, with Class 2 contributions effectively voluntary since April 2024.
One of the most punitive features of the UK tax system is the £100,000 Personal Allowance trap. When adjusted net income exceeds £100,000, HMRC tapers the Personal Allowance at £1 for every £2 of income above the threshold, exhausting the full £12,570 by £125,140. In England, Wales and Northern Ireland this produces an effective marginal tax rate of 60% on income in the £100,000–£125,140 range, because each extra pound of salary triggers 40% higher-rate tax on itself plus loss of 50p of allowance that was previously untaxed. Scottish taxpayers face a still-steeper trap — 67.5% income tax only, or 69.5% including 2% employee NI — because the taper zone sits inside Scotland's 45% Advanced rate, not the 42% Higher rate. With the PA now frozen to 2030/31, fiscal drag will pull an increasing number of earners into this band; the standard mitigation is a personal pension contribution sufficient to bring adjusted net income back below £100,000, which restores the full allowance and flattens the marginal rate.
Scotland operates its own income tax system, set by the Scottish Parliament but collected by HMRC through payroll (identified by the S prefix on tax codes). For 2025/26 Scottish taxpayers pay a Starter rate of 19% on £12,571–£15,397, a Basic rate of 20% on £15,398–£27,491, an Intermediate rate of 21% on £27,492–£43,662, a Higher rate of 42% on £43,663–£75,000, an Advanced rate of 45% on £75,001–£125,140, and a Top rate of 48% above £125,140. Following the Scottish Budget delivered by Cabinet Secretary Shona Robison on 13 January 2026 and ratified by Parliament on 19 February 2026, the Starter rate upper limit rises to £16,537 and the Basic rate upper limit to £29,526 for 2026/27 — a 7.4% increase delivering a modest tax cut for Scottish taxpayers earning between roughly £15,000 and £43,000 — while the Intermediate, Higher, Advanced and Top thresholds are frozen (with the Higher/Advanced/Top freeze extended through 2028-29) and all six rates are unchanged. Scottish rates apply only to non-savings, non-dividend income; savings interest, dividends and all National Insurance for Scottish taxpayers continue to use UK-wide rates reserved to Westminster, meaning that a Scottish taxpayer on £75,000 still pays over £1,700 more income tax per year than an equivalent earner in England, Wales or Northern Ireland.
The most notable novelty for 2026/27 is that Plan 5 student loan repayments begin for the first time. Plan 5 covers students who started undergraduate courses (or Advanced Learner Loans) in England on or after 1 August 2023 — that first cohort now enters repayment on 6 April 2026. Plan 5 borrowers repay 9% of earnings above £25,000, a threshold frozen until April 2027 and RPI-uprated thereafter, with loans written off 40 years after the April borrowers first became eligible to repay; interest accrues at RPI only, with no +3% element. Plans 1, 2, 4 and the Postgraduate loan thresholds are uprated each April — for 2026/27 these are £26,900 (Plan 1, 9%), £29,385 (Plan 2, 9%, then frozen for three years from April 2027), £33,795 (Plan 4 Scotland, 9%) and £21,000 (Postgraduate Plan 3, 6%, frozen since 2016). Borrowers with multiple plans pay each concurrently if their income exceeds each relevant threshold.
FAQ
Frequently asked questions
When do I start paying income tax?
You start paying income tax once your earnings exceed the Personal Allowance, which is £12,570 for both the 2025/26 and 2026/27 tax years. Income below this threshold is completely tax-free. If your income is between £100,000 and £125,140, your Personal Allowance is gradually withdrawn at £1 for every £2 over £100,000, creating an effective 60% marginal tax rate in that band — or 67.5% for Scottish taxpayers, because the taper zone sits inside Scotland's 45% Advanced rate.
What is the Personal Allowance for 2025/26 and 2026/27?
The Personal Allowance — the amount of income you can earn before paying income tax — is £12,570 for both the 2025/26 and 2026/27 tax years, unchanged since April 2021. In the Autumn Budget on 26 November 2025, the Chancellor extended the freeze by a further three years, so the allowance is scheduled to remain at £12,570 through to 5 April 2031. Above £100,000 of adjusted net income the allowance is tapered at £1 for every £2, reaching zero at £125,140 — this creates a 60% effective marginal tax rate in that band (67.5% for Scottish taxpayers, whose Advanced rate of 45% applies in the same zone). The allowance is UK-wide and is not devolved: Scotland, Wales and Northern Ireland all use £12,570.
What's the difference between 2025/26 and 2026/27?
For taxpayers in England, Wales and Northern Ireland, all income tax and National Insurance thresholds are frozen — including the £12,570 Personal Allowance, the £50,270 higher-rate threshold, the £125,140 additional-rate threshold, and the employee primary threshold — with the freeze now extended to 5 April 2031 by the Autumn Budget 2025. Three substantive changes do bite in 2026/27: dividend tax rates rise by 2 percentage points from 6 April 2026 (basic rate 8.75% → 10.75%, higher rate 33.75% → 35.75%; additional rate held at 39.35%); Business Asset Disposal Relief rises from 14% to 18%; and Plan 5 student loan repayments begin for the first cohort of English undergraduates who started on or after 1 August 2023. In Scotland, the Starter rate upper limit rises from £15,397 to £16,537 and the Basic rate upper limit from £27,491 to £29,526, giving a small tax cut to Scottish taxpayers earning between roughly £15,000 and £43,000; Intermediate, Higher, Advanced and Top rate thresholds are frozen. The full new State Pension also rises 4.8% to £241.30 per week, and the two-child benefit cap is abolished from April 2026.
How is National Insurance calculated?
Employees pay Class 1 National Insurance Contributions at 8% on earnings between the Primary Threshold (£12,570 per year, £242 per week) and the Upper Earnings Limit (£50,270 per year, £967 per week), and at 2% on earnings above £50,270. Both thresholds and both rates are unchanged between 2025/26 and 2026/27 and are frozen until 5 April 2031 following the Autumn Budget 2025. Your employer separately pays Class 1 secondary NICs at 15% on your earnings above the £5,000 secondary threshold (set at that level from 6 April 2025 after the Autumn Budget 2024 cut it from £9,100); this is an employer cost and does not directly reduce your take-home pay, although salary sacrifice arrangements can share the NIC saving. Self-employed earners pay Class 4 NICs at 6% on profits between £12,570 and £50,270 and 2% above, with Class 2 effectively voluntary since April 2024.
What is the £100K Personal Allowance trap?
When your adjusted net income exceeds £100,000, HMRC withdraws your Personal Allowance at £1 for every £2 of income above that threshold, so the full £12,570 allowance has disappeared by the time you reach £125,140. In England, Wales and Northern Ireland this produces an effective marginal tax rate of 60% on each pound earned in that range — 40% higher-rate income tax on the pound itself, plus a further 20% effectively paid because 50p of previously tax-free allowance is reclaimed at 40%. Scottish taxpayers face a steeper 67.5% income-tax-only trap (or 69.5% once 2% employee NI is included) because the taper zone sits inside Scotland's 45% Advanced rate, not the 42% Higher rate. The most common mitigation is to make a personal pension contribution large enough to pull adjusted net income back below £100,000, which restores the full allowance and recovers the marginal cliff edge.
How does Scottish income tax work?
Scottish income tax applies to the non-savings, non-dividend income of Scottish taxpayers (residency-based, not workplace-based) and is collected by HMRC, not Revenue Scotland, despite being set by the Scottish Parliament. For 2025/26 the six bands are: Starter 19% on £12,571–£15,397; Basic 20% on £15,398–£27,491; Intermediate 21% on £27,492–£43,662; Higher 42% on £43,663–£75,000; Advanced 45% on £75,001–£125,140; and Top 48% above £125,140. For 2026/27, following the Scottish Budget delivered by Shona Robison on 13 January 2026 and ratified by Parliament on 19 February 2026, the Starter rate upper limit rises to £16,537 and the Basic rate upper limit to £29,526 — a 7.4% uplift well above inflation — while the Intermediate (£43,662), Higher (£75,000), Advanced (£125,140) and Top thresholds and all six rates are unchanged. Savings and dividend income of Scottish taxpayers, and all National Insurance, continue to use UK-wide rates set by Westminster, so a Scottish taxpayer on £75,000 still pays materially more income tax than an equivalent rUK earner (the Higher rate is 42% in Scotland vs 40% elsewhere).
What does my tax code mean?
Your tax code tells your employer how much tax-free income to allocate against each pay period. The numeric portion multiplied by ten is your Personal Allowance, so the standard code 1257L corresponds to £12,570 — and remains 1257L for both 2025/26 and 2026/27 because the allowance is frozen. The suffix letter modifies the allowance: L is the standard code; M means you have received 10% of your spouse's allowance under Marriage Allowance (£1,260, worth up to £252); N means you have given 10% of yours away; T means the code includes other calculations (often the £100k taper). Prefix S indicates Scottish rates apply; C indicates Welsh (Cymru) rates, which currently mirror rUK. Special codes apply a flat deduction: BR taxes every pound at 20%, D0 at 40%, D1 at 45%, 0T applies the bands but gives no allowance, NT deducts no tax, and a K prefix means benefits in kind or other adjustments exceed your allowance so the K-number (×10) is added to taxable pay each period.
When does Plan 5 student loan repayment start?
Plan 5 applies to students who started undergraduate courses (or Advanced Learner Loans) in England on or after 1 August 2023, and the first repayments fall in the 2026/27 tax year starting 6 April 2026 — today's earliest Plan 5 borrowers are in their third year of university with loans now entering repayment. Plan 5 borrowers repay 9% of earnings above £25,000, a threshold fixed until April 2027 and then uprated by RPI thereafter, and loans are written off 40 years after the April the borrower first became eligible to repay. HMRC began issuing Plan 5 SL1 start notices to employers from April 2026; if you have both a Plan 5 and a Postgraduate Loan you pay both concurrently, at 9% and 6% respectively. Plan 5 interest accrues at RPI only — there is no +3% element during study or high-earning years, unlike Plan 2.
Do pension contributions reduce my tax bill?
Yes — and for higher earners they are among the most tax-efficient uses of gross income available. A salary sacrifice pension contribution reduces your gross salary for both income tax and National Insurance, so a higher-rate taxpayer earning between £50,270 and £125,140 saves 42p of tax and NI per £1 contributed (40% income tax + 2% employee NI above the UEL), and the employer typically adds at least some of their 15% NIC saving as well. A personal pension contribution outside salary sacrifice receives 20% basic-rate relief at source (so £80 becomes £100 in the pension) with higher- and additional-rate relief claimed through Self Assessment, and can also restore a Personal Allowance lost to the £100,000 taper because pension contributions reduce adjusted net income. The Annual Allowance remains £60,000 for both 2025/26 and 2026/27, tapered for those with adjusted income above £260,000 (floor £10,000), and the Money Purchase Annual Allowance is £10,000. Note that the Autumn Budget 2025 announced a £2,000-per-year cap on the NIC-free portion of salary-sacrificed pension contributions from 6 April 2029 — this does not affect 2025/26 or 2026/27, but large salary-sacrifice arrangements should factor in the coming change.
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