How much tax do I pay in the UK

The short answer

How much tax you pay depends on how much you earn, where in the UK you live, and which deductions apply to you. For most employees, the main deductions are income tax, employee National Insurance, and possibly student loan repayments.

The quickest way to see your own number is to run the take-home pay calculator with your salary. This guide explains what sits behind that result.

Income tax bands for 2025-26

Income tax in the UK is charged in bands. You do not pay the same rate on all your income — each band applies only to the portion of income that falls within it.

England, Wales, and Northern Ireland

• Personal allowance: GBP 0 to GBP 12,570 — 0 percent (tax-free)
• Basic rate: GBP 12,571 to GBP 50,270 — 20 percent
• Higher rate: GBP 50,271 to GBP 125,140 — 40 percent
• Additional rate: Above GBP 125,140 — 45 percent

Scotland

Scotland has its own income tax rates with more bands:

• Personal allowance: GBP 0 to GBP 12,570 — 0 percent
• Starter rate: GBP 12,571 to GBP 14,876 — 19 percent
• Basic rate: GBP 14,877 to GBP 26,561 — 20 percent
• Intermediate rate: GBP 26,562 to GBP 43,662 — 21 percent
• Higher rate: GBP 43,663 to GBP 75,000 — 42 percent
• Advanced rate: GBP 75,001 to GBP 125,140 — 45 percent
• Top rate: Above GBP 125,140 — 48 percent

Practical takeaway: Scottish taxpayers pay slightly more income tax above the intermediate band and significantly more at very high incomes. The personal allowance is the same across the UK.

Employee National Insurance for 2025-26

National Insurance is a separate deduction from income tax. For employees:

• Below GBP 12,570: no NI
• GBP 12,570 to GBP 50,270: 8 percent
• Above GBP 50,270: 2 percent

National Insurance is calculated weekly or monthly by payroll, but PayPath models it on an annual basis for planning purposes.

Student loan deductions

If you have a student loan, repayments are an additional deduction above a threshold:

• Plan 1: 9 percent of income above GBP 24,990
• Plan 2: 9 percent of income above GBP 27,295
• Plan 4 (Scotland): 9 percent of income above GBP 31,395
• Plan 5: 9 percent of income above GBP 25,000
• Postgraduate loan: 6 percent of income above GBP 21,000

Student loan repayments are not technically a tax, but they reduce take-home pay in the same way.

Worked examples at common salary levels

To see how these rules combine in practice:

• Take-home pay on GBP 30,000 — basic-rate territory
• Take-home pay on GBP 50,000 — approaching the higher-rate threshold
• Take-home pay on GBP 80,000 — well into the higher-rate band
• Take-home pay on GBP 100,000 — where the personal allowance taper begins

The personal allowance taper

If your adjusted income exceeds GBP 100,000, your personal allowance is reduced by GBP 1 for every GBP 2 above GBP 100,000. This creates an effective 60 percent marginal tax rate between GBP 100,000 and GBP 125,140. See the 60 percent tax trap guide for the full explanation.

How salary sacrifice changes the answer

Pension salary sacrifice reduces your taxable pay before income tax and National Insurance are calculated. This means the tax you pay can be significantly lower than someone earning the same gross salary without salary sacrifice. The salary sacrifice calculator shows the difference.

What these numbers do not include

PayPath models the main employee deductions: income tax, National Insurance, and student loans. It does not model:

• employer National Insurance (which your employer pays, not you)
• benefits in kind or company car tax
• marriage allowance transfers
• childcare benefit tapers
• self-assessment adjustments

For most employed people, the main deductions are the ones modelled here. If you have complex circumstances, use these estimates as a starting point and consult HMRC or a tax adviser for precision.

How to check your own numbers

1. Run the take-home pay calculator with your gross salary 2. Compare the result with your actual payslip — small differences are normal because payroll operates on a cumulative basis while the calculator uses annual estimates 3. If the difference is large, check your tax code — an unexpected tax code can mean HMRC is collecting underpaid tax from a previous year or adjusting for benefits in kind 4. Read the tax codes guide if your code is not the standard 1257L