Free Tool
UK Tax Refund Calculator
Use this free calculator to estimate your UK income tax and National Insurance for the 2025-2026 tax year. The UK operates a Pay As You Earn (PAYE) system with 3 main tax bands: Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%).
This calculator uses official HMRC tax bands and the Personal Allowance of £12,570 for 2025-2026. Results are estimates and should be verified with HMRC or a tax advisor.
Calculate Your UK Tax
UK Tax System Overview
The UK tax year runs from April 6 to April 5 of the following year. For the 2025-2026 tax year (April 6, 2025 to April 5, 2026), most employees pay tax automatically through PAYE (Pay As You Earn), while self-employed individuals file a Self Assessment tax return.
Income Tax Bands 2025-2026
| Band | Taxable Income | Tax 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% |
Personal Allowance Taper: The Personal Allowance reduces by £1 for every £2 earned above £100,000. It phases out completely at £125,140.
National Insurance Contributions (NICs)
In addition to income tax, UK employees pay National Insurance. For 2025-2026:
- Class 1 (Employees): 12% on earnings from £12,570 to £50,270, then 2% above £50,270
- Class 2 (Self-employed): £3.45 per week for profits above £6,725
- Class 4 (Self-employed): 9% on profits from £12,570 to £50,270, then 2% above £50,270
Key UK Tax Reliefs and Allowances
- ISA (Individual Savings Account): £20,000 annual allowance; interest and investment growth are tax-free
- Pension Tax Relief: Contributions to workplace or personal pensions receive tax relief at your marginal rate
- Marriage Allowance: Transfer £1,260 of unused Personal Allowance to spouse/civil partner (if they earn less than £12,570)
- Dividend Allowance: £500 tax-free dividend income (2025-2026)
- Capital Gains Tax Allowance: £3,000 annual exempt amount
For more information, visit the official HMRC Income Tax rates page or use the HMRC online tax checker.
Scotland and Wales Tax Differences
While England and Northern Ireland use the standard UK tax bands, Scotland and Wales have devolved tax powers that allow them to set different income tax rates for their residents.
Scottish Income Tax (2025-2026)
Scotland uses a more progressive system with 6 tax bands instead of England's 3. The Scottish rates for 2025-2026 are: 19% (Starter Rate) on £12,571-£15,397, 20% (Basic Rate) on £15,398-£27,498, 21% (Intermediate Rate) on £27,499-£43,662, 42% (Higher Rate) on £43,663-£125,140, and 47% (Top Rate) above £125,140. This means middle-income Scottish residents often pay slightly more tax than their English counterparts, while the very wealthy pay more due to the 47% top rate versus England's 45%.
Welsh Income Tax (2025-2026)
Wales has the power to vary income tax rates but has chosen to keep them aligned with England for 2025-2026. Welsh residents pay the same 20%, 40%, and 45% rates as England. However, Wales retains the option to adjust these rates in future years, and the Welsh Government has indicated it may introduce its own bands if fiscal pressures require it.
National Insurance Differences
Unlike income tax, National Insurance rates are the same across all of the UK. All employees pay 12% on earnings from £12,570 to £50,270, then 2% above that threshold. Self-employed individuals pay Class 4 NICs at 9% on profits from £12,570 to £50,270, then 2% above. These rates apply whether you live in England, Scotland, Wales, or Northern Ireland.
For the most up-to-date Scottish tax information, visit Revenue Scotland. For Welsh tax information, visit the Welsh Revenue Authority.