UK Income Tax Calculator
Calculate your UK income tax and National Insurance contributions. See your take-home pay based on HMRC tax bands.
Tax Breakdown (2024/25)
Income Tax by Band
How to Use This Tool
- Enter your annual gross income in GBP.
- The calculator computes your Personal Allowance, reducing it if your income exceeds £100,000.
- Taxable income (income minus Personal Allowance) is split across the Basic, Higher, and Additional Rate bands.
- National Insurance (Class 1) is calculated on earnings above the primary threshold.
- Review your income tax, National Insurance, total deductions, net income, and monthly take-home pay.
Formula & How It Works
Personal Allowance
Allowance = £12,570 if Income ≤ £100,000, else max(0, £12,570 − (Income − £100,000) / 2)The tax-free Personal Allowance shrinks by £1 for every £2 earned above £100,000, reaching £0 at £125,140.
Taxable Income
Taxable Income = Gross Income − Personal AllowanceThis is the amount subject to Income Tax bands.
Income Tax (2024/25 bands)
20% on the first £37,700 of taxable income + 40% on the next £74,870 (up to £112,570) + 45% on the remainderEach band rate applies only to the slice of taxable income within it — this mirrors HMRC's Basic (£12,571–£50,270), Higher (£50,271–£125,140), and Additional (over £125,140) rate bands once the Personal Allowance is applied.
National Insurance (Class 1)
NI = (min(Income, £50,270) − £12,570) × 8% + max(0, Income − £50,270) × 2%NI is charged at 8% on earnings between the £12,570 primary threshold and the £50,270 upper earnings limit, then 2% above that.
Net Income
Net Income = Gross Income − (Income Tax + National Insurance)This is your annual take-home pay; dividing by 12 gives the monthly figure.
Practical Examples & Common Use Cases
Example: £45,000 salary
Personal Allowance stays at £12,570 (income under £100,000). Taxable income: £32,430, all within the Basic Rate, so Income Tax = £32,430 × 20% = £6,486. National Insurance: (£45,000 − £12,570) × 8% = £2,594. Total deductions ≈ £9,080, leaving net income of about £35,920 (≈£2,993/month).
Example: £120,000 salary (Personal Allowance tapered)
Personal Allowance reduces to £12,570 − (£120,000 − £100,000)/2 = £2,570. Taxable income: £117,430. Income Tax: 20% on £37,700 (£7,540) + 40% on £74,870 (£29,948) + 45% on the remaining £4,860 (£2,187) ≈ £39,675. National Insurance: 8% on £37,700 (£3,016) + 2% on £69,730 (£1,395) ≈ £4,411. Total deductions ≈ £44,086, leaving net income of about £75,914 (≈£6,326/month).
Example: £28,000 salary
Personal Allowance stays at £12,570. Taxable income: £15,430, all within the Basic Rate, so Income Tax = £15,430 × 20% = £3,086. National Insurance: (£28,000 − £12,570) × 8% = £1,234. Total deductions ≈ £4,320, leaving net income of about £23,680 (≈£1,973/month).
Frequently Asked Questions
This calculator uses the 2024/25 UK tax year rates and bands as published by HMRC.
Your Personal Allowance is reduced by £1 for every £2 you earn above £100,000. This means it reaches £0 when your income hits £125,140.
No, this calculator does not include student loan repayments, pension contributions, or other deductions beyond income tax and National Insurance.
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