How UK tax on your salary works
Everyone gets a tax-free Personal Allowance of £12,570. Income Tax is charged on the rest in bands. National Insurance is separate: 8% of what you earn between £12,570 and £50,270 a year, and 2% above that.
| Band | Salary | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
| Band | Salary | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
These salary ranges assume the standard Personal Allowance. Student loans take 9% of pay above your plan's threshold (Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000) and a Postgraduate Loan takes 6% above £21,000.
Worked example: £35,000 a year
In England, £35,000 minus the £12,570 allowance leaves £22,430 taxed at 20%: £4,486 Income Tax. National Insurance is 8% of £22,430: £1,794.40. Take-home pay is £28,719.60 a year, or £2,393.30 a month. In Scotland the same salary pays £4,501.07 Income Tax, because the first slice is taxed at 19% but the top slice at 21%.
The £100,000 tax trap
Above £100,000 you lose £1 of Personal Allowance for every £2 you earn, until it's gone at £125,140. In that range each extra £1 costs 40% tax, another 20% from the lost allowance and 2% NI, so you keep only 38p. Paying more into a pension through salary sacrifice brings your income down and the allowance back; the calculator shows this.
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Rates checked on 1 October 2026 against HMRC's Rates and thresholds for employers 2026 to 2027, Income Tax rates, Scottish Income Tax and student loan thresholds. An estimate, not tax advice.