3 tax bands from 20% to 45% plus National Insurance
UK's hidden trap: between £100,000-£125,140, you lose £1 of personal allowance for every £2 earned—creating a brutal 60% effective rate. A £75,000 earner pays £15,432 income tax + £5,079 NI = £20,511 total (~27%). The 40% higher rate kicks in at just £50,270. Scotland has different rates: 42% from £43,663.
The UK uses a progressive income tax system with three main bands: 20% basic rate (£12,571-£50,270), 40% higher rate (£50,271-£125,140), and 45% additional rate (over £125,140). The £12,570 Personal Allowance is tax-free—but disappears between £100,000-£125,140 income, creating a brutal 60% effective rate in that band. On top of income tax, you pay National Insurance: 12% on earnings £12,570-£50,270, then 2% above. A £75,000 earner pays roughly £20,500 total (income tax + NI). Scotland has different rates—including a 42% intermediate band from £43,663. Use our calculator to estimate your UK tax liability.
| Taxable Income | Tax Rate |
|---|---|
| £0 - £12,570 | 0% (Personal Allowance) |
| £12,570 - £50,270 | 20% (Basic) |
| £50,270 - £125,140 | 40% (Higher) |
| Over £125,140 | 45% (Additional) |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: HM Revenue & Customs
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Transfer money to or from UK at the real exchange rate. Save up to 5x vs banks on GBP transfers.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From UK →★ 4.8 Trustpilot · 1,625 reviews
US citizen living in UK? Get expert help with your US tax filing from abroad.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →★ 4.7 Trustpilot · 8,728 reviews
Working as a contractor in UK? Deel handles compliance, payroll, and international payments.
⚠ For employers and companies only — not for individual freelancers or employees.
Get Paid as a Contractor →UK income tax has three main bands for 2025/26: 20% basic rate on income £12,571-£50,270, 40% higher rate on £50,271-£125,140, and 45% additional rate on income over £125,140. The first £12,570 is your tax-free Personal Allowance. National Insurance adds 12% (then 2% above £50,270) on top of these rates.
Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 you earn. This means you're effectively paying 40% income tax PLUS losing £12,570 of tax-free allowance. The marginal rate in this band hits 60%. Pension contributions are the main way to avoid this trap—they reduce your adjusted net income.
Employees pay Class 1 NI: 12% on earnings between £12,570-£50,270 per year, then 2% on everything above. Self-employed pay Class 4 NI: 9% on profits £12,570-£50,270, then 2% above. A £75,000 employee pays roughly £5,079 in NI annually. NI funds your State Pension and certain benefits.
For the 2025/26 tax year (April 6, 2025 - April 5, 2026): paper returns are due by October 31, 2026; online Self Assessment returns are due by January 31, 2027. Most employees don't need to file—PAYE handles it automatically. Self-employed, landlords, and those earning over £150,000 must file.
Yes, Scotland sets its own income tax rates. For 2025/26: 19% starter rate (£12,571-£14,876), 20% basic (£14,877-£26,561), 21% intermediate (£26,562-£43,662), 42% higher (£43,663-£75,000), 45% advanced (£75,001-£125,140), and 48% top rate (over £125,140). Scottish rates are generally higher than rest of UK.
Last Updated: March 2026