Income tax is an amount that you pay annually for your salary, that you receive. In income tax, you also pay national insurance and take-home pay. Income tax and National Insurance change according to each year's rates and thresholds.
For the year (2022-2023) in the UK you pay: Personal Allowance: 0 to 12570 (0%) Basic Rate: 12571 to 50270 (20%) Higher Rate: 50271 to 150000 (40%) Additional Rate: Over 150000 (45%)
How to Calculate Income Tax?
You don't need to calculate your income tax manually by yourself, our online income tax tool can calculate your income tax and other things very easily, all you need to enter your current salary and select the tax year. If you want to calculate it by yourself then follow the below steps.
Suppose your annual salary is (40000).
Now follow the below steps
Step 1: 40000 - 12570 = 27430 Step 2: (27430 * 20) / 100 = 5486 is the annual income tax you pay for the year (2022/2023).