Income Tax Calculator

ESTIMATED INCOME TAX

£0.00

Enter your income details to calculate.

This calculator gives a simplified income tax estimate for the 2026/27 tax year. It does not include National Insurance, pension contributions, student loans or every individual tax situation.

How to calculate income tax

Income tax is calculated in bands. This means different parts of your income can be taxed at different rates. The first part of most people’s income is covered by the Personal Allowance, which is the amount you can usually earn before paying income tax.

Formula used

The simplified calculation is:

Income tax = tax due from each income band after the Personal Allowance

Example: £40,000 income in England, Wales or Northern Ireland

Annual income = £40,000
Personal Allowance = £12,570
Taxable income = £27,430
20% basic rate tax on £27,430 = £5,486

Estimated income tax = £5,486.00

Income tax in Scotland

Scotland uses different income tax bands for earned income. This calculator includes a Scotland option so the estimate reflects Scottish income tax bands rather than the England, Wales and Northern Ireland bands.

What this calculator is for

This calculator estimates income tax from annual income. It is useful for understanding how much income tax may be due before considering other deductions such as National Insurance, pension contributions or student loan repayments.

Important note

This tool is a simplified guide. Actual tax can vary depending on your tax code, pension arrangements, benefits, bonuses, savings interest, dividends, marriage allowance, adjusted net income and other circumstances.

Frequently Asked Questions

What is income tax?

Income tax is a tax paid on income above your tax-free allowance. It can apply to employment income, self-employment income, pensions and some other types of income.

What is the Personal Allowance?

The Personal Allowance is the amount most people can earn before paying income tax. For the 2026/27 tax year, the standard Personal Allowance is £12,570.

Does this include National Insurance?

No. This calculator only estimates income tax. National Insurance is calculated separately.

Does Scotland have different income tax bands?

Yes. Scotland has different income tax bands for earned income, so this calculator includes a Scotland option.

Can my actual income tax be different?

Yes. Your actual income tax can vary depending on your tax code, pension contributions, benefits, bonuses and personal circumstances.


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