What are the UK income tax bands for 2025/26?

After the £12,570 personal allowance, taxable income is charged at 20% up to £50,270, 40% from £50,270 to £125,140, and 45% above £125,140. These apply in England, Wales and Northern Ireland; Scotland sets its own bands.

Why do I lose my personal allowance over £100,000?

The £12,570 personal allowance is reduced by £1 for every £2 of income above £100,000, so it disappears entirely at £125,140. This creates an effective 60% marginal tax rate on income between £100,000 and £125,140.

How much income tax do I pay on £45,000?

With the full £12,570 allowance, taxable income is £32,430, all in the 20% basic band, so income tax is about £6,486 a year — roughly £540 a month — an effective rate near 14.4% of gross.

Does PAYE include National Insurance?

No. PAYE here means Income Tax only. National Insurance, student loan repayments, and pension contributions are deducted separately from your pay. Use the National Insurance calculator alongside this for your full deductions.

UK PAYE Calculator — Gera Tools

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PAYE (Pay As You Earn) is how UK employers deduct Income Tax from your wages. This calculator applies the 2025/26 personal allowance and tax bands to your salary and shows the tax taken each year, month, or week.

How it works

The first £12,570 of income is tax-free (the personal allowance). Taxable income is then charged in bands: 20% up to £50,270, 40% from £50,270 to £125,140, and 45% above £125,140.

If you earn above £100,000 the personal allowance is tapered away — reduced by £1 for every £2 over £100,000 — so it reaches zero at £125,140. That taper is why the band between £100,000 and £125,140 carries an effective marginal rate around 60%.

allowance = 12,570 − max(0, (salary − 100,000) / 2)
taxable   = salary − allowance

Example

On a £45,000 salary the full £12,570 allowance applies, leaving £32,430 taxable. That sits entirely in the 20% band, so income tax is 20% of £32,430 = £6,486 for the year, about £540.50 a month, an effective rate of roughly 14.4% of gross pay.

Notes

Estimate only, not tax advice. This models 2025/26 PAYE Income Tax for England, Wales and Northern Ireland with the standard personal allowance and the above-£100,000 taper. Scotland uses different bands and rates, and a non-standard tax code (such as a K code or marriage allowance) will change your figures. National Insurance and student loans are separate. Verify at gov.uk.