UK Income Tax Calculator
UK income tax is charged in bands, so the rate on your last pound of earnings is not the rate on all of it. This calculator applies the bands in order and shows what is left.
Formula
Tax = Σ (income in each band × that band’s rate)
- Bands apply in order; only income above a threshold is taxed at the higher rate
£35,000: (£35,000 − £12,570) × 20% = £4,486
How the Bands Work
For England, Wales and Northern Ireland, income tax applies in slices:
- Personal Allowance: the first £12,570 is tax free
- Basic rate (20%): £12,571 to £50,270
- Higher rate (40%): £50,271 to £125,140
- Additional rate (45%): above £125,140
On a £35,000 salary, £22,430 is taxable at 20%, giving £4,486 of income tax.
Moving Into a Higher Band
A common worry is that a pay rise into the higher-rate band leaves you worse off. It does not. Only the income above the threshold is taxed at 40%.
On £60,000: £37,700 at 20% is £7,540, and the £9,730 above £50,270 at 40% is £3,892 — £11,432 in total.
The 60% Trap and Scotland
There is one genuine cliff. Between £100,000 and £125,140 the Personal Allowance is withdrawn by £1 for every £2 earned, producing an effective marginal rate of about 60% across that band. Pension contributions are the usual response.
Scotland sets its own income tax bands with more rates than the rest of the UK, so a Scottish taxpayer's bill differs at the same salary. National Insurance is separate again and charged on its own thresholds.
Quick Reference
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Frequently Asked Questions
- How much tax will I pay on £35,000?
- Around £4,486 in income tax for England, Wales and Northern Ireland, before National Insurance, pension contributions and any student loan repayment.
- Does a pay rise into the 40% band leave me worse off?
- No. Only the portion above the threshold is taxed at the higher rate, so more gross pay always means more take-home pay.
- What is the 60% tax trap?
- Between £100,000 and £125,140 the Personal Allowance is withdrawn at £1 for every £2 earned, giving an effective marginal rate near 60 per cent on that slice.
- Are Scottish rates different?
- Yes. Scotland sets its own income tax bands and rates, so the same salary produces a different bill north of the border.