Income Tax is charged in bands. Each rate applies to part of your taxable income, so moving into a higher band does not put your whole salary on that rate.
Checked . Based on official GOV.UK guidance. About our calculators and content.
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England, Wales and Northern Ireland
With the standard £12,570 allowance, 20% applies to the first £37,700 of taxable income. The higher rate is 40% and the additional rate is 45% above the relevant boundary. If your allowance is reduced, more income becomes taxable.
Scotland
Scotland has different bands for employment income. Select Scotland in the calculator to see the breakdown for your chosen tax year.
Other deductions and income
NI and student loans have their own thresholds. Savings and dividends also have separate rules and are not included in the main employment calculation. The tax-year panel links to the rates used.
Source: Read the original rules and guidance. Content checked 23 October 2026. General explanation, not personalised tax advice.