How much tax will I pay for 2026/27?
Put in what you earn and we'll show you the tax, the National Insurance and — the one that catches people out — the payment on account. Free, no sign-up, and we show you every step of the working.
This is an estimate for the 2026/27 tax year based on the figures you entered, and it is general information rather than personal tax advice. Tax has more edges than a calculator can cover. If your situation has anything unusual in it, ask us — we'll check it properly and there's no charge for that.
What the numbers mean
What you actually pay tax on
Not your turnover — your profit. Take what came in, subtract your allowable costs, and that is the figure tax is charged on. Everyone gets a personal allowance of £12,570 before any income tax applies, and it tapers away above £100,000 at £1 lost for every £2 over. Income tax is then 20% on the first £37,700 of taxable income, 40% up to £125,140, and 45% above that. If your costs are under £1,000 you can deduct a flat £1,000 trading allowance instead, which is usually the better answer — the calculator offers it when it is. In Scotland the personal allowance is the same but earnings are taxed in six bands, from 19% to 48%.
Why there are two National Insurances, and why one is now free
Class 4 National Insurance is 6% on profits between £12,570 and £50,270, and 2% above that. It is charged on your self-employment profit alone — not on your total income — so a £42,000 salary alongside £8,000 of profit attracts no Class 4 at all. Class 2 used to be a flat weekly charge. Now, if your profit is £7,105 or more, it is treated as paid at no cost and the year still counts towards your State Pension. Below that you owe nothing, but you can pay voluntarily at £3.65 a week to protect your record.
What a payment on account is, and why your first January is bigger
This is the one that surprises people. Once you owe £1,000 or more, and less than 80% of your tax was collected at source, HMRC asks for an advance towards next year as well as the bill for last year. It comes in two halves: the first with your January payment, the second on 31 July. So a first January is roughly one and a half times the annual bill. It is not an extra charge and it is not a penalty — next year's return sets it against what you actually owe. Class 2 and student loan repayments sit outside the advance but inside the January total, which is why the figure is rarely exactly 150%. Payments on account, explained in full →
Pension contributions and Gift Aid
Both get 20% relief at source: pay £80 into a personal pension or give £80 under Gift Aid and it becomes £100, because the provider or the charity claims the other £20 from HMRC. If everything you earn is taxed at 20% or below, that is the whole story. If some of it is taxed at 40% or 45%, the grossed-up amount widens your basic rate band by the same figure, so less of your income is taxed at the higher rates — and it lifts the point at which the personal allowance starts to taper. That extra relief only arrives through your tax return, which is why the calculator asks. Two limits to know: pension relief stops at 100% of your earnings for the year (rent does not count), or £3,600 gross if you earn less; and Gift Aid must be no more than four times the tax you pay, or HMRC can ask you for the shortfall. Gift Aid on a pension income, worked out →
What this calculator doesn't cover
It handles self-employment profit, property profit, a PAYE salary, personal pension contributions and Gift Aid. It does not handle capital gains, dividends, savings interest, income from abroad, partnership profit shares, or loss relief carried between years. It also assumes the tax on your salary was collected correctly, which is usually but not always true. If any of that applies to you the figure here will be in the right region but not right, and the honest answer is to ask — we will work yours out properly and there is no charge for that.
The dates that follow from this
Common questions
Is this figure what I'll actually be charged?
It is an estimate from the figures you typed. It will be close if your position is straightforward, and wrong if you have gains, dividends or foreign income — none of which this tool models.
Why is the January number bigger than the tax for the year?
Because it includes the first payment on account — an advance towards next year. It is not an extra charge.
Do you keep my figures?
No. The calculation happens in your browser and nothing is sent anywhere unless you ask us to email the result to you.
Do I have to give you an email address?
No. The full result and the working are there for everyone. The email is offered because some people want it in writing, not to unlock anything.
Why did my pension contribution or Gift Aid change nothing?
Because you pay tax at 20% or below. The basic-rate relief is added at source — into your pension pot or to the charity — so there is nothing extra for you personally. The extra relief only appears once some of your income is taxed at 40% or 45%, or you are in the £100,000 allowance taper.
- Income tax rates and allowances — GOV.UK
- Scottish income tax — GOV.UK
- Self-employed National Insurance rates — GOV.UK
- Payments on account — GOV.UK (with HMRC SALF303 and SAM121665)
- Rates and thresholds for employers 2026 to 2027 (student loans) — GOV.UK
- Tax-free allowances on property and trading income — GOV.UK
- Changes to tax relief for residential landlords — GOV.UK
- Tax relief on your private pension contributions — GOV.UK
- Tax relief when you donate to a charity: Gift Aid — GOV.UK
Figures are for the 2026/27 tax year. This is general information rather than personal tax advice — if your situation has anything unusual in it, ask us and we'll check it properly, free.
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