UK Effective Tax Rate Calculator
Your effective rate is what fraction of your gross salary disappears to tax and NI. It's lower than your top rate — sometimes much lower — because of the tax-free personal allowance.
Updated May 2026, using HMRC 2026/27 rates and current ONS / gov.uk figures.
The 'top rate' (basic 20%, higher 40%, additional 45%) is the marginal rate — the rate on your last pound earned. The effective rate is the rate on your average pound. They differ, and the effective rate is what determines your real disposable income.
How it works. Effective tax rate = total income tax ÷ gross income. Effective combined rate = (income tax + NI) ÷ gross income. 2026/27 bands.
Worked examples
£20,000 salary → effective income tax 7.4%, +NI 3.0% = 10.4% combined
£35,000 salary → effective tax 12.7%, +NI 5.1% = 17.8% combined
£60,000 salary → effective tax 19.0%, +NI 5.4% = 24.4% combined
£100,000 salary → effective tax 27.4%, +NI 4.5% = 31.9% combined
£200,000 salary → effective tax 38.5%, +NI 2.7% = 41.2% combined
Sources:
HMRC Income Tax rates 2026/27 · HMRC NI rates 2026/27
· retrieved 2026-05-12.
Frequently asked questions
Why is my effective rate lower than my top tax band?
Because the £12,570 personal allowance is taxed at 0%. Even at the top of the higher rate band (£125k), only the slice between £50k and £100k is at 40% — the rest is at 0%, 20% or in the 60% taper zone.
How is this different from the marginal rate?
Marginal rate = the tax on your next pound. Effective rate = average tax across all pounds. A higher-rate payer has a 40%+2% marginal rate but typically a 20-30% effective rate.
Does the 60% trap show up in the effective rate?
Slightly. Effective rate is an average, so the 60% taper zone pulls it up — but doesn't push it above 60% (the very high marginal rate only applies to a £25k slice).