1. UK Tax System Overview

The UK tax system for 2025-26 includes Income Tax and National Insurance contributions. Income Tax is calculated using progressive brackets, while National Insurance has different rates above certain thresholds.

2. 2025-26 Tax Brackets

Income Tax Rates:

• Personal Allowance: £0 - £12,570 (0%)
• Basic Rate: £12,571 - £50,270 (20%)
• Higher Rate: £50,271 - £125,140 (40%)
• Additional Rate: Above £125,140 (45%)

3. National Insurance Explained

Class 1 NI Rates:

• Primary Threshold: £12,576/year
• 12% on earnings between £12,576 - £50,268
• 2% on earnings above £50,268

4. Using the Calculator

Enter your gross annual salary to calculate your estimated Income Tax, National Insurance contributions, total tax burden, and net salary for the 2025-26 tax year.

5. Frequently Asked Questions

Q1: Are these tax rates confirmed for 2025-26?
A: These are projections based on current government plans and inflation adjustments. Final rates will be confirmed in the 2025 Budget.

Q2: Does this include student loan repayments?
A: No, this calculator only includes Income Tax and National Insurance. Student loan repayments would be additional.

Q3: How accurate is this calculator?
A: It provides estimates for standard employment income. Special circumstances (multiple jobs, self-employment, etc.) may affect actual tax liability.

Q4: What about pension contributions?
A: This calculator assumes no pension contributions. Salary sacrifice or relief-at-source pensions would reduce taxable income.

Q5: When does the tax year run?
A: The UK tax year runs from April 6 to April 5 the following year.