1. What is the UK Tax Calculator?

This calculator estimates your monthly tax deductions in the UK for the 2025-26 tax year, including Income Tax and National Insurance contributions based on your annual salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax - Calculated using 2025-26 tax bands and rates
• National Insurance - Calculated using 2025-26 NI thresholds and rates

Explanation: The calculator first determines your taxable income after accounting for the Personal Allowance, then applies the appropriate tax rates to each band of your income.

3. Understanding UK Taxes

Details: For 2025-26, the UK has:

• Personal Allowance: £12,570 (0% tax)
• Basic rate (20%): £12,571 to £50,270
• Higher rate (40%): £50,271 to £125,140
• Additional rate (45%): Above £125,140
• National Insurance: 12% on earnings between £12,571-£50,270, 2% above £50,270

4. Using the Calculator

Tips: Enter your gross annual salary in GBP. The calculator will show your estimated monthly tax deductions, along with annual breakdowns of Income Tax and National Insurance.

5. Frequently Asked Questions (FAQ)

Q1: Are pension contributions considered?
A: No, this calculator shows pre-pension tax calculations. Pension contributions may reduce your taxable income.

Q2: What about student loan repayments?
A: Student loan repayments are not included in this calculation as they depend on your specific repayment plan.

Q3: Does this include Scottish tax rates?
A: No, this calculator uses UK-wide rates. Scotland has slightly different income tax bands.

Q4: How accurate is this calculator?
A: It provides estimates based on standard tax rates. Your actual deductions may vary based on specific circumstances.

Q5: When do tax bands change?
A: Tax bands typically change each April with the new tax year. Always check for the latest rates.