UK Effective Tax Rate Calculator
Your effective tax rate is the average rate you pay across your whole income, not the rate on the next pound.
It blends the tax-free allowance, the basic band and any higher-rate income into one percentage, so you can see what share of your earnings actually goes to tax and National Insurance.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: a £50,000 salary in 2026/27
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Effective tax rate | Income Tax | National Insurance | Total deductions | Take-home pay | Your marginal tax band |
|---|---|---|---|---|---|---|
| £25,000 salary | 13.92% | £2,486.00 | £994.40 | £3,480.40 | £21,519.60 | Basic rate (20%) |
| £50,000 salary | 20.96% | £7,486.00 | £2,994.40 | £10,480.40 | £39,519.60 | Basic rate (20%) |
| £100,000 salary | 31.44% | £27,432.00 | £4,010.60 | £31,442.60 | £68,557.40 | Higher rate (40%) |
| £150,000 salary | 39.14% | £53,703.00 | £5,010.60 | £58,713.60 | £91,286.40 | Additional rate (45%) |
Important assumptions
- Uses England, Wales and Northern Ireland income tax rates unless Scottish taxpayer is selected.
- Includes employee National Insurance only — the employer contribution is not part of your effective rate.
- Excludes pension contributions, which reduce your taxable income and therefore your effective rate.
- Student loan repayments are shown separately as a repayment, not counted as tax.
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
What is the effective tax rate?
It is your total Income Tax and National Insurance divided by your gross income — the average percentage of everything you earn that goes on tax. It is always lower than your marginal rate while you have any tax-free or basic-rate income.
How is the effective rate different from the marginal rate?
The marginal rate is the tax on your next pound of income (40% or 45% for higher earners). The effective rate is your average across all income, including the tax-free allowance, so it is much lower.
Why does my effective rate stay flat across a range of salaries?
Because a salary rise within the same tax band is taxed at your marginal rate, while the effective rate moves more slowly — every extra pound adds to both your income and your tax, keeping the average relatively stable.
Should I use my effective or marginal rate for planning?
Use your effective rate to understand your overall tax bill, and your marginal rate to work out the tax cost of earning more, or the saving from contributions like pensions that come out of your top slice.
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View calculatorRelated guides
New to the topic? Read a plain-English guide on salary & tax, with worked examples and tips.
How UK Income Tax works
The tax-free allowance, rate bands and how PAYE takes tax from your pay.
Read the guide TaxPAYE explained
How pay as you earn collects Income Tax and NI from your salary.
Read the guide TaxUnderstanding tax bands
Basic, higher and additional rate explained with worked examples.
Read the guide TaxHow to read a payslip
Every line on your pay slip decoded — payments, deductions, year-to-date, and why a bonus month looks different.
Read the guide TaxUK tax rates and allowances 2026/27
Every UK tax rate and allowance for the 2026/27 tax year in one place — income tax, National Insurance, VAT, dividends, corporation tax, student loans and more.
Read the guide TaxHigh Income Child Benefit Charge explained
How the High Income Child Benefit Charge works — the £60,000 threshold, the 1% clawback and what you repay.
Read the guide TaxPension tax relief explained
How pension tax relief works — 20% added at source, extra relief for higher and additional-rate taxpayers, and the annual allowance.
Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.