Income Tax Calculator
A simplified estimate of what reaches your account. It uses headline rates only, and the page is explicit about what it leaves out.
- Per month
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- Income tax
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- National insurance
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- Marginal rate
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Band by band
| Band | Rate | Income in band | Tax |
|---|
How income tax bands actually work
A higher tax band applies only to the income above its threshold, never to all of it. This is the single most common misunderstanding about tax. In the UK, earning £50,300 does not mean paying 40% on everything — it means 40% on the £30 above the £50,270 threshold, and 20% on the band below. Moving into a higher bracket can never leave you worse off overall. The one genuine exception in the UK is the £100,000–£125,140 range, where the personal allowance is withdrawn and the effective marginal rate reaches 60%.
UK rates used here
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
National insurance is charged at 8% between £12,570 and £50,270, then 2% above. Scotland has its own income tax bands, which this calculator does not model.
The 60% trap: above £100,000 the personal allowance is withdrawn at £1 for every £2 earned. Between £100,000 and £125,140 that produces an effective marginal rate of 60%, which is why pension contributions in that band are unusually efficient.
US rates used here
Federal income tax only, using the standard deduction. FICA is 6.2% Social Security up to the wage base plus 1.45% Medicare with no cap, and an extra 0.9% Medicare above $200,000 single or $250,000 joint.
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | Up to $11,600 | Up to $23,200 |
| 12% | $11,601 – $47,150 | $23,201 – $94,300 |
| 22% | $47,151 – $100,525 | $94,301 – $201,050 |
| 24% | $100,526 – $191,950 | $201,051 – $383,900 |
| 32% | $191,951 – $243,725 | $383,901 – $487,450 |
| 35% | $243,726 – $609,350 | $487,451 – $731,200 |
| 37% | Over $609,350 | Over $731,200 |
State tax is not included, and it ranges from nothing in nine states to over 13% in California. Add your state rate separately.
What this leaves out
Real tax is far more individual than any calculator. This one does not model:
- US state and local taxes, which can add 0–13%.
- Scottish income tax bands, which differ from the rest of the UK.
- Student loan repayments, which behave like an additional marginal rate.
- Itemised deductions, credits and allowances — child benefit, marriage allowance, mortgage interest, dependent credits.
- Self-employment, where both halves of FICA or Class 2 and 4 NI apply.
- Salary sacrifice, which reduces NI as well as income tax and is materially better than a standard pension contribution.
- Any income that is not employment income — dividends, capital gains and rental income are all taxed differently.
Use it to understand the shape of your tax, not to file anything.
How to use the Income Tax Calculator
- Choose your country.
- Enter your gross annual income before any deductions.
- Add your pension or 401(k) contribution as a percentage.
- Read the take-home figure and the band-by-band breakdown.
Frequently asked questions
Will earning more push me into a higher bracket and leave me worse off?
No. Higher rates apply only to the income above the threshold, so an extra pound always leaves you with more. The UK £100,000–£125,140 band is the closest thing to an exception, where the marginal rate hits 60% — you still keep 40p in the pound.
Does a pension contribution reduce my tax?
In the UK, yes — contributions get income tax relief, which is why the calculator applies them before tax. In the US, traditional 401(k) contributions reduce federal income tax but not FICA.
Why is my payslip different from this?
Because payroll applies your specific tax code, student loan plan, salary sacrifice arrangements, benefits in kind, and any mid-year adjustments. This is a headline-rate estimate.
Does it include US state tax?
No, federal only. State income tax ranges from zero in nine states to over 13% in California, so add yours separately.
What is the 60% tax trap?
Between £100,000 and £125,140 in the UK, the personal allowance is withdrawn at £1 for every £2 earned. Combined with 40% tax that produces a 60% effective marginal rate, making pension contributions in that band unusually valuable.
How often do these rates change?
Annually. The figures here are headline rates and thresholds that should be checked against the current tax year before relying on them.
Related tools
Last reviewed September 4, 2026. A simplified estimate using headline rates. Your actual liability depends on circumstances a calculator cannot see — get advice for anything that matters.