UK income tax uses a progressive band system. The first £12,570 is tax-free (Personal Allowance). You pay 20% Basic Rate on income from £12,571 to £50,270, 40% Higher Rate from £50,271 to £125,140, and 45% Additional Rate above £125,140. Scotland has separate rates including a 19% Starter Rate, 21% Intermediate Rate, and 42% Higher Rate.

From April 2026, the National Living Wage for workers aged 21 and over is £12.60 per hour. The National Minimum Wage for 18–20 year olds is £10.00 per hour, and £7.55 per hour for under-18s and apprentices. At 37.5 hours per week, the National Living Wage equals approximately £24,570 per year gross, giving an estimated take-home of around £21,234 per year after tax and NI.

The Personal Allowance is frozen at £12,570 for 2026–2027 and will remain at this level until April 2031. For every £2 you earn above £100,000, you lose £1 of your Personal Allowance. It disappears entirely at £125,140, creating an effective 60% marginal tax rate in that range.

Employee Class 1 NI is 8% on earnings between £12,570 and £50,270 per year, and 2% above £50,270. On a £35,000 salary this equals approximately £1,794/year (£149/month). On a £50,000 salary it is approximately £2,994/year (£250/month). NI thresholds are unchanged from 2025–26.

Yes. Scottish taxpayers pay rates set by the Scottish Parliament: 19% Starter Rate (£12,571–£16,537), 20% Basic Rate (£16,538–£29,526), 21% Intermediate Rate (£29,527–£43,662), 42% Higher Rate (£43,663–£75,000), 45% Advanced Rate (£75,001–£125,140), and 48% Top Rate above £125,140. National Insurance is identical across all UK regions.

Our estimates use confirmed HMRC rates and thresholds for 2026–2027 and assume a standard tax code (1257L) with no benefits in kind. Actual deductions on your payslip depend on your specific tax code, employer pension scheme, student loan plan, and any additional income. For precise figures, check your P60 or contact HMRC on 0300 200 3300.