£ PayGrid Statutory estimates · not financial advice

Income tax calculator

Enter your taxable income (salary after pension and other deductions) to see exactly how much income tax you pay, band by band, with your effective and marginal rates.

Your details

£7,486
Income taxAnnual
£12,570
Personal allowanceTax-free
15.0%
Effective rateTax ÷ income
20.0%
Marginal rateNext £1 of income

Band-by-band breakdown

BandTaxableRateTax
Personal allowance£12,5700.0%£0
Basic rate£37,43020.0%£7,486
Total£7,486

The personal allowance is reduced by £1 for every £2 of income above £100,000, so effective marginal rates in that range are higher than the band rates shown.

How income tax works

Everyone gets a personal allowance (£12,570 in 2026/27), and that amount is tax-free. Above that, income is taxed in bands: 20% on the basic-rate band, 40% on the higher-rate band and 45% on additional-rate income above £125,140.

If your income is above £100,000, your personal allowance is reduced by £1 for every £2 over the threshold, which creates a 60% effective rate on that slice of income. Scotland has its own five-band structure, which is why the nation selector matters.