UK Income Tax Calculator (PAYE)
Estimate your UK Income Tax and National Insurance contributions under the PAYE system for the current tax year.
How to Use This Calculator
Enter your annual salary, tax code, and select your age group. The calculator will determine PAYE tax, National Insurance contributions, and net income.
- Enter annual gross salary in GBP.
- Enter tax code (standard: 1257L for 2026/27).
- Select your age group (under 65, 65-75, over 75).
- Click Calculate Tax to see PAYE tax, NI contributions, and net income.
- Use results for payroll, budgeting, and planning.
PAYE Income Tax Calculator
UK Income Tax and PAYE Guide
PAYE (Pay As You Earn) is the system used by HM Revenue & Customs (HMRC) to collect income tax and National Insurance contributions from employees’ salaries. Employers deduct tax and contributions from each paycheck and remit it to HMRC. This calculator estimates your PAYE liability based on salary, tax code, and age group.
UK Tax Bands (2026/27)
- Personal Allowance: £12,570 – 0%
- Basic Rate: £12,571 – £50,270 – 20%
- Higher Rate: £50,271 – £150,000 – 40%
- Additional Rate: £150,001+ – 45%
National Insurance Contributions
- Class 1 NIC for employees: 12% on earnings between £12,570 – £50,270.
- 2% on earnings above £50,270.
- Age affects NI contribution rates; over 65 may be exempt.
Tips for Employees
- Ensure correct tax code with employer for accurate PAYE deduction.
- Check personal allowance and additional benefits for exemption.
- Use the calculator to estimate monthly take-home pay.
- Verify calculations against HMRC PAYE tables for accuracy.
FAQs
What is PAYE?
PAYE is the UK system where employers deduct income tax and National Insurance from employees’ salaries and remit it to HMRC.
What is my tax code?
Your tax code reflects your personal allowance and deductions. Most employees have 1257L for 2026/27.
How does age affect tax and NI?
Individuals over 65 may have reduced or no NI contributions. Tax bands are the same, but personal allowances may vary.
Using this UK Income Tax (PAYE) calculator ensures accurate estimation of tax and NI contributions, simplifies payroll, and helps employees plan their net income.