How much can I earn tax-free?
Almost everyone gets a Personal Allowance: £12,570 of income each tax year that is not taxed at all. The tax year runs from 6 April to 5 April, so 2026/27 covers pay from 6 April 2026 to 5 April 2027. If your total pay is £12,570 or less, you pay no income tax.
The allowance is the same for 2026/27 as it was for 2025/26, and the government has said it will stay frozen until April 2031. Frozen thresholds mean that a pay rise pulls more of your income into tax each year, even though the rates do not change.
What are the income tax bands in England, Wales and Northern Ireland?
Income above the allowance is cut into slices, and each slice has its own rate:
| Band | Income (standard allowance) | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Wales sets its own rates, but for 2026/27 they match England and Northern Ireland exactly. Your tax code starts with a C so HMRC can track it. Scotland is different: see Scottish income tax bands.
How much income tax do I pay on £30,000, £60,000 and £130,000?
£30,000 a year. Take off the £12,570 allowance and £17,430 is left. All of it sits in the basic rate band, so the tax is 20% of £17,430: £3,486.00 a year, or £290.50 a month.
£60,000 a year. The first £37,700 above the allowance is taxed at 20%, which is £7,540.00. The remaining £9,730 is taxed at 40%, which is £3,892.00. Total: £11,432.00. Notice that only £9,730 of the £60,000 is taxed at 40%, not the whole salary.
£130,000 a year. Above £125,140 the allowance has gone completely, so tax starts on the first pound. The basic rate band takes £7,540.00, the higher rate band £34,976.00 and the £4,860 over £125,140 is taxed at 45%, which is £2,187.00. Total: £44,703.00.
Is my salary the same as my taxable pay?
Some things come off before income tax is worked out. The most common is a workplace pension paid through net pay or salary sacrifice. On £60,000 with a 5% net pay pension, £3,000 goes into the pension before tax, the taxable pay drops to £57,000, and the income tax falls to £10,232.00. That £1,200.00 saving is the tax relief on the pension, at your top rate of 40%.
Other things work the other way. Company benefits such as a car or private medical cover are taxable, and HMRC usually collects the tax by lowering your tax code, which gives you less tax-free pay each month.
How is income tax taken from my pay?
If you are employed, you never send the money yourself. Pay As You Earn (PAYE) means your employer takes the tax from each payslip, using the tax code HMRC gives them. Payroll works it out cumulatively: each month it looks at your pay so far this tax year, the tax-free pay you have built up so far, and the tax already taken. If you had a month with a bonus, or started a job part-way through the year, that is why one payslip can look higher or lower than another.
Over the whole year it should even out. If it does not, HMRC sends a calculation after the year ends and either refunds you or collects what is missing, often through next year’s tax code.
What happens to income over £100,000?
Once your income passes £100,000, you lose £1 of the allowance for every £2 you earn above it, until it reaches zero at £125,140. In that stretch each extra pound is effectively taxed at 60%. It is the single most surprising part of the system, so it has its own guide: the 60% tax trap.
How much income tax will I pay?
The calculator shows your tax band by band, along with National Insurance, student loans and your pension. Or jump straight to a salary, such as £30,000 after tax or £60,000 after tax.