Income Tax Calculator (UK)
Calculate UK income tax
Income Tax Calculator (UK)
Calculate UK income tax and National Insurance for 2024/25 tax year
Enter Details
Basic personal allowance: £12,570 (tapers for incomes over £100,000)
Use Scottish tax rates instead of rest of UK rates
Tax Calculation Results
Taxable Income
£12,430
Income Tax
£0
National Insurance
£994.4
Total Tax & NI
£994.4
Marginal Tax Rate
0%
Effective Tax Rate
4.0%
How to Use the UK Income Tax Calculator
Our UK Income Tax Calculator helps you estimate your income tax and National Insurance contributions for the 2024/25 tax year. Simply enter your annual income and select your options to get comprehensive tax calculations.
Step-by-Step Guide:
- Enter your gross annual income from all sources
- Choose whether to use the Personal Allowance
- Add any additional deductions (pensions, donations, etc.)
- Select if you're a Scottish taxpayer for different tax rates
- Review your income tax, National Insurance, and total tax liability
- Download the results for your tax planning
Features of Our UK Income Tax Calculator
2024/25 Tax Rates
Updated with the latest UK tax rates and allowances for 2024/25
Scottish Tax Rates
Separate calculations for Scottish taxpayers with different tax bands
Personal Allowance
Automatic calculation of Personal Allowance with tapering for high earners
National Insurance
Includes Class 1 National Insurance contributions calculations
Marginal & Effective Rates
Shows both marginal tax rate and effective tax rate for better understanding
Download Results
Save your tax calculation results as a text file for record-keeping
Why Use Our UK Income Tax Calculator?
Understanding your tax obligations in the UK is essential for financial planning. Our calculator provides accurate estimates based on current tax laws and helps you make informed decisions.
Benefits:
- ✓Estimate your tax liability accurately
- ✓Understand National Insurance costs
- ✓Plan your take-home pay
- ✓Compare Scottish vs rest of UK rates
Use Cases:
- ✓Salary negotiations
- ✓Budget planning
- ✓Pension planning
- ✓Self-employment tax estimates
Who Should Use This Calculator?
This calculator is designed for UK taxpayers who need to understand their income tax and National Insurance obligations.
Employees
Calculate take-home pay and tax deductions from salary
Self-Employed
Estimate tax and National Insurance for self-employment income
Scottish Residents
Calculate tax using Scottish tax bands and rates
Freelancers
Plan tax payments for freelance and contract work
Tax Advisors
Quick tax estimates for client consultations
Students
Learn about UK tax system and progressive taxation
Understanding UK Tax System
UK Tax Structure
The UK operates a progressive tax system where tax rates increase with income. There are different tax rates for Scotland compared to the rest of the UK. All taxpayers also pay National Insurance contributions.
Rest of UK Tax Bands (2024/25)
- • £0 - £12,570: 0% (Personal Allowance)
- • £12,571 - £50,270: 20% (Basic rate)
- • £50,271 - £125,140: 40% (Higher rate)
- • Over £125,140: 45% (Additional rate)
Scottish Tax Bands (2024/25)
- • £0 - £12,570: 0% (Personal Allowance)
- • £12,571 - £14,732: 19% (Starter rate)
- • £14,733 - £25,296: 20% (Basic rate)
- • £25,297 - £43,662: 21% (Intermediate rate)
- • £43,663 - £125,140: 41% (Higher rate)
- • Over £125,140: 46% (Top rate)
Personal Allowance
The Personal Allowance is the amount of income you can earn before you start paying income tax. For 2024/25, it's £12,570. This allowance is reduced for high earners (over £100,000) at a rate of £1 for every £2 earned above the threshold.
National Insurance Contributions
National Insurance (NI) contributions are made by employees and employers to fund state benefits. The rates for 2024/25 are:
Class 1 NI Rates (Employees):
- • £0 - £12,570: 0%
- • £12,571 - £50,270: 8%
- • Over £50,270: 2%
Tax-Free Allowances
- • Personal Allowance: £12,570
- • Marriage Allowance: Up to £1,260
- • Blind Person's Allowance: £2,980
- • Rent a Room Relief: £7,500
- • Trading Allowance: £1,000
- • Property Allowance: £1,000
- • Savings Allowance: £1,000-£2,000
- • Dividend Allowance: £1,000
Frequently Asked Questions
What's the difference between Scottish and rest of UK tax rates?
Scotland has different tax bands and rates. While the basic Personal Allowance is the same, Scotland has a starter rate (19%) and intermediate rate (21%), while the rest of UK has a single basic rate (20%). Higher rate thresholds also differ between the two systems.
How does the Personal Allowance tapering work?
If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above this threshold. This means high earners lose their tax-free allowance, effectively increasing their marginal tax rate.
What counts as taxable income?
Taxable income includes wages, salaries, bonuses, pensions, rental income, savings interest, and dividends. Some income sources have tax-free allowances (like the £1,000 savings allowance) before becoming taxable.
How is National Insurance different from income tax?
Income tax funds general government spending, while National Insurance funds the welfare state including pensions, unemployment benefits, and healthcare. NI is calculated differently and has different thresholds.
What tax reliefs are available?
Common tax reliefs include pension contributions, charitable donations, work-related expenses, and certain business expenses. These can reduce your taxable income or provide tax credits.
How often are tax rates and allowances updated?
Tax rates and allowances are typically updated annually in the Budget, usually in March. They can also be adjusted for inflation. The calculator uses the most current 2024/25 rates and allowances.