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Hourly Tax Calculation:
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The hourly tax calculation helps you understand how much of your hourly earnings go towards taxes in the UK for the 2025-26 tax year. It combines your annual Income Tax and National Insurance contributions, then divides by your total working hours in a year.
The calculator uses the following equation:
Where:
Explanation: This calculation shows the effective hourly tax rate by spreading your annual tax burden across all working hours.
Details: Understanding your hourly tax rate helps with financial planning, contract negotiations, and comparing different employment options. It provides a clearer picture of your actual take-home pay per hour worked.
Tips: Enter your total annual Income Tax and National Insurance amounts in GBP, along with your typical weekly working hours. All values must be positive numbers (hours must be greater than 0).
Q1: Where can I find my annual Income Tax and National Insurance amounts?
A: These amounts are shown on your payslips or P60 form. Your employer's payroll department can also provide this information.
Q2: Does this include all taxes?
A: This includes Income Tax and National Insurance, which are the main deductions for most employees. It doesn't include student loan repayments or pension contributions.
Q3: Why use 52 weeks?
A: We assume you work the same hours all year round, including during holidays (when you might be paid but not working). For more precise calculations, you could adjust for actual working weeks.
Q4: How accurate is this for part-time workers?
A: The calculation works equally well for part-time workers. Just be sure to enter your actual weekly hours and tax amounts.
Q5: Does this account for tax bands?
A: The calculation works with your total tax amounts, so it automatically accounts for whatever tax bands apply to your income level.