UK Tax Code Calculator
Your Tax Calculation Results
| Description | Amount (£) |
|---|
How to Use This Calculator
Working out your tax can feel overwhelming, but it doesn’t have to be. Simply enter your tax code (found on your payslip or P60), your annual salary, and how often you get paid. The calculator will instantly show you exactly what you’ll take home after tax, National Insurance, and any other deductions.
If you’re not sure about your tax code, 1257L is the most common one for the 2025/26 tax year. This code means you get the full personal allowance of £12,570 before paying any tax. Your results will show a complete breakdown of where your money goes, helping you spot any errors that might mean you’re paying too much.
What Your Tax Code Actually Means
Your tax code tells your employer how much tax to deduct from your pay. It’s made up of numbers and letters that might look random, but they each have a specific meaning. The numbers usually represent your personal allowance (the amount you can earn tax-free), whilst the letters indicate your particular circumstances.
Common Tax Code Letters
You’re entitled to the standard personal allowance. This is the most common letter.
Marriage Allowance: you’ve received a transfer of 10% of your partner’s personal allowance.
Marriage Allowance: you’ve transferred 10% of your personal allowance to your partner.
Your tax code includes items that HMRC needs to review with you.
Your personal allowance has been used up, or you haven’t provided enough details.
All your income is taxed at the basic rate (usually for a second job).
All your income is taxed at the higher rate (40%).
All your income is taxed at the additional rate (45%).
You have income that isn’t being taxed another way, and it’s worth more than your allowance.
You’re not paying any tax on this income.
Your income is taxed using Scottish tax rates (your main home is in Scotland).
Your income is taxed using Welsh tax rates (your main home is in Wales).
W1 and M1 Emergency Codes
If you see W1 or M1 at the end of your tax code (like 1257L W1), this is an emergency code. It means you’re being taxed only on what you earn in the current pay period, without taking into account what you’ve already earned this tax year. This usually happens when you start a new job and your employer doesn’t have your P45.
How UK Income Tax Works
The UK uses a progressive tax system, which means you pay different rates on different portions of your income. You don’t pay any tax on your first £12,570 (for most people), then higher rates kick in as you earn more. Let’s break down exactly what you’ll pay depending on where you live.
England, Wales, and Northern Ireland Rates (2025/26)
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Scotland Rates (2025/26)
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £15,396 | 19% |
| Basic Rate | £15,397 – £27,490 | 20% |
| Intermediate Rate | £27,491 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Here’s something important to remember: you only pay the higher rates on the income that falls within those bands. For example, if you earn £55,000, you don’t pay 40% on all of it. You pay nothing on the first £12,570, 20% on the next £37,700, and 40% only on the remaining £4,730.
National Insurance Explained
National Insurance is separate from income tax, and it goes towards your State Pension and certain benefits. The rates changed in April 2025, so make sure you’re using the latest figures when calculating your take-home pay.
Employee National Insurance Rates (2025/26)
| Category | Weekly Earnings | Rate |
|---|---|---|
| Below threshold | Up to £242 | 0% |
| Main rate | £242.01 – £967 | 8% |
| Additional rate | Over £967 | 2% |
Most employees pay Class 1 National Insurance. If you’re employed and earning above £242 per week (£1,048 per month), you’ll start paying National Insurance at 8%. Once you earn over £967 per week (£4,189 per month), the rate drops to 2% on earnings above that threshold.
Common Questions About Tax Codes
Student Loan Repayments
If you’re repaying a student loan, this comes out of your pay automatically alongside tax and National Insurance. The amount you pay depends on which plan you’re on and how much you earn. Let’s look at what you need to know.
Student Loan Thresholds (2025/26)
| Loan Plan | Annual Threshold | Repayment Rate | Who It Applies To |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | Started before Sept 2012 (England/Wales), or Scottish students |
| Plan 2 | £27,295 | 9% | Started Sept 2012 or later (England/Wales) |
| Plan 4 | £31,395 | 9% | Scottish students who started Sept 2007 or later |
| Plan 5 | £25,000 | 9% | Started on or after 1 August 2023 (England/Wales) |
| Postgraduate | £21,000 | 6% | Postgraduate loans |
You only repay 9% (or 6% for postgraduate loans) on income above the threshold. So if you’re on Plan 2 and earn £30,000, you’d repay 9% of £2,705 (£30,000 – £27,295), which works out at about £20 per month. If you have multiple loans, you’ll repay them simultaneously.
Pension Contributions and Tax Relief
Paying into a workplace pension can actually reduce the tax you pay right now. The government gives you tax relief on your contributions, which means for every £80 you pay in, the government adds £20 (if you’re a basic rate taxpayer). Higher rate taxpayers can claim even more back.
Most workplace pensions use “relief at source”, where the pension provider claims the tax relief for you. If you’re a higher or additional rate taxpayer, you can claim extra relief through your Self Assessment or by asking HMRC to adjust your tax code. For a 40% taxpayer contributing £100, the government adds £25 on top of the basic relief, bringing the total cost down to just £60 for a £125 pension contribution.
Common Tax Code Mistakes to Watch For
Millions of people overpay tax each year because of errors in their tax code. Here are the most common mistakes and what to look out for.
Being on an Emergency Code for Too Long
Emergency codes are meant to be temporary, but sometimes they stick around for months. If you’ve been at your job for more than a few weeks and still see W1 or M1 on your payslip, chase it up with your employer or HMRC. You’re likely overpaying tax every month.
Not Updating HMRC When Benefits Stop
If you had a company car or health insurance that you no longer receive, your tax code might still account for it. This means you’re being taxed on benefits you’re not actually getting. Always tell HMRC when your circumstances change.
Wrong Code After Changing Jobs
When you switch jobs, make sure you give your new employer your P45. Without it, they’ll put you on an emergency code. Even if you do provide a P45, check your first few payslips to make sure the tax code transferred correctly.
Forgetting to Claim Marriage Allowance
If you’re married or in a civil partnership and one of you earns less than £12,570 whilst the other is a basic rate taxpayer, you can transfer £1,260 of your allowance. This saves up to £252 per year, but you need to claim it – it’s not automatic.
Losing Personal Allowance at £100,000
Once you earn over £100,000, your tax code should change to reflect the reduced personal allowance. Sometimes HMRC doesn’t update this quickly enough, meaning you underpay tax and get a bill later. If you’ve recently crossed this threshold, check your code matches your circumstances.
What to Do If You’ve Paid Too Much Tax
Discovering you’ve overpaid tax can be frustrating, but getting your money back is usually straightforward. Here’s exactly what you need to do.
During the Tax Year
If you spot an error mid-year, contact HMRC as soon as possible. They’ll update your tax code, and your employer will automatically refund the overpaid tax through your salary over the remaining pay periods. You can call HMRC on 0300 200 3300 or update your details through your Personal Tax Account online.
After the Tax Year Ends
HMRC usually reviews everyone’s tax after the tax year ends (5 April). If you’ve overpaid, they’ll send you a P800 calculation showing what you’re owed and either refund it automatically or tell you how to claim. This typically happens between June and November following the end of the tax year.
Previous Tax Years
You can claim back overpaid tax from up to four previous tax years. Complete a form P87 (for work expenses) or P50 (if you’ve stopped working) depending on your situation. For more complex claims, you might need to complete a Self Assessment tax return.