1. What is the UK Tax Rate Calculator?

The UK Tax Rate Calculator estimates your marginal tax rate and total income tax liability based on the UK 2025/26 tax bands. It helps you understand how much tax you'll pay on additional income and your overall tax position.

2. How Does the Calculator Work?

The calculator uses the UK 2025/26 income tax bands:

Explanation: The UK uses a progressive tax system where different portions of your income are taxed at different rates. Your marginal rate is the tax rate you pay on your next pound of income.

3. Understanding Marginal Tax Rates

Details: Your marginal tax rate indicates the percentage of tax you would pay on any additional income. This is important for financial planning, salary negotiations, and understanding the tax implications of bonuses or additional work.

4. Using the Calculator

Tips: Enter your total annual income in pounds. The calculator will show your marginal tax rate (the rate on your next pound of income) and your total estimated income tax for the year.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between marginal and effective tax rate?
A: Marginal rate is the tax on your next pound of income, while effective rate is your total tax divided by total income (average tax rate).

Q2: Are National Insurance contributions included?
A: No, this calculator only shows income tax. National Insurance is calculated separately and has different thresholds.

Q3: What about Scotland's different tax bands?
A: This calculator uses the England, Wales and Northern Ireland tax bands. Scotland has different rates and thresholds.

Q4: How accurate is this calculator?
A: It provides estimates based on standard tax bands. Individual circumstances like pension contributions, marriage allowance, or other deductions may affect your actual tax liability.

Q5: When do tax bands change?
A: Tax bands are typically announced in the annual Budget and apply from the start of the next tax year (April 6th).