How to use the Income Tax Calculator
This tool estimates income tax and payroll tax for the UK (2025/26) or the US federal system (2025), plus your take-home pay.
Open the Income Tax Calculator →
What you need to enter
- Country / status
- Gross annual income
- Pension / 401(k) contribution (%)
The formula
UK: tax on income above the personal allowance at 20%, 40% and 45% bands, with the allowance tapering above £100,000, plus National Insurance. US: federal brackets after the standard deduction, plus Social Security and Medicare.
Worked example
Using the default values in the calculator:
- Country / status: United Kingdom (England, Wales, N. Ireland) 2025/26
- Gross annual income: 55000
- Pension / 401(k) contribution (%): 5
| Take-home pay (annual) | £40,807.4 |
| Income tax | £8,332 |
| National Insurance | £3,110.6 |
| Pension / retirement contribution | £2,750 |
| Monthly take-home | £3,400.62 |
| Effective tax rate | 20.8% |
Tips for better results
- Use it for planning, not filing.
- Check official tables for your own year.
Common mistakes to avoid
- Ignoring state, local or Scottish rates.
- Assuming the highest bracket applies to all income.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.