How Much Tax Will I Pay?
How Much Tax Will I Pay is a free salary and income tax calculator that allows you to find out how much tax you will have to pay without waiting to receive your payslip. You can use your own tax code to get the most accurate calculations, or you can use the default allowances set by age and income level.
One of the most popular questions asked is "How much tax will I pay?" and this simple tool will let you figure it out quickly. Not only that, you can compare the tax you should be paying according to the calculator to what you actually did pay. If you've paid too much, you could be entitled to a tax rebate.
This tax calculator is a work in progress and is made better by suggestions by the people that use it (you)!. If there is a feature missing, or something that doesn't work as intended, just send us an email and we'll try to get it working for you. We aren't accountants and we're not trying to sell you anything - we're just normal people who want to pay as little tax as possible.
How Much Tax Will I Pay? currently lets you calculate tax for 2011/12 and 2012/13 and we are working on previous years to hopefully go as far back as we can. The tables below highlight how the salary calculator gets its data and there is a bried explanation about each of the fields and how to use them. We hope you enjoy using the tool and hopefully, you aren't paying too much tax!
Income tax rates by year
| Income tax allowances | 2011-12 | 2012-13 |
|---|---|---|
| Personal Allowance (1) | £7,475 | £8,105 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Personal Allowance for people aged 65-74 (1)(2) | £9,940 | £10,500 |
| Personal Allowance for people aged 75 and over (1)(2) | £10,090 | £10,660 |
| Income limit for age-related allowances | £24,000 | £25,400 |
| Blind Person's Allowance | £1,980 | £2,100 |
- Starting from the 2010-11 tax year, your Personal Allowance reduces when your gross income is above £100,000. Your tax free allowance is reduced by £1 for every £2 above the £100,000 limit. This reduction applies to all age groups.
- These Personal Allowances reduce when your gross income is above the income limit for the age-related allowances. Again, your tax free allowance is reduced by £1 for every £2 above the limit. Starting from the 2010-11 tax year, the Personal Allowance for people aged 65-74 and 75+ can also be reduced below the basic Personal Allowance if your gross income is above £100,000.
What are the Income Tax rates and taxable bands?
| Rate | 2011-12 | 2012-13 |
|---|---|---|
| Basic rate: 20% | £0-35,000 | £0-£34,370 |
| Higher rate: 40% | £35,001-£150,000 | £34,371-£150,000 |
| Additional rate: 50% | Over £150,000 | Over £150,000 |
How to use this salary calculator
We've tried to make this salary calculator as easy to use as possible for you. Many of the income tax calculators we see are far too overwhelming so our aim with this one was to make it as obvious as possible. Here is a breakdown of all the options this calculator provides and what they mean for you when trying to find out how much tax you will pay:
Select year: Our tax calculator will work out your taxes for 2011/12 and the most current tax year 2012/13. If you're absolutely desperate to work out taxes for 2010/11 and before then fear not, it is something we are working on for a future version!
Gross income: You can enter your gross earnings by day, week, month or year. The calculator will tax whatever frequency you choose and work out the annual amount to perform all the other calculations. So if you enter £1,000 a month and your gross income, it will do £1,000 x 12 (months) and work out your tax free allowance, tax due, national insurance and so on.
Other allowances/deductions: If you have any tax free allowances or deductions you need to make the tax calculator aware of, you can enter them here. For deductions, just pop a minus symbol (-) before the number. So if you had £1,000 less tax free allowance than the standard, you would enter -1000.
Tax code: If you know what your tax code is, you can enter it here and the calculator will use it to work out your tax. All other tax calculations will be ignored when a tax code is used.
Age: Additional allowances and reduced or no National Insurance contributions are available for higher age groups.
Pension contribution: If you currently contribute to a pension, you can use the dropdown box to select the percentage of your salary that you contribute on a monthly basis.
I am blind: An additional allowance is available for people who are registered as blind.
I do not pay NI: If you do not pay National Insurance contributions, tick the box to exclude them from the PAYE calculator.