Free Income Tax Calculator – Know Your Take-Home Pay
Convert gross to net and estimate income tax with a clear breakdown. Choose pay frequency, set allowances/deductions, and see your effective rate.
⚠️ Advisory only: Estimates for guidance and education. For tax advice, speak to a qualified professional.
Estimate Your Net Pay Instantly
Your result will appear here
Enter gross pay and choose a frequency.
Below you’ll find features, usage tips, how it works, formulas, and a worked example.
Why Use This Income Tax Calculator?
Fast and lightweight tool
No sign-ups. Results update as you type.
Progressive tax brackets handled
Clear breakdown by tax bands & rates.
Support for multiple pay frequencies
Annual, monthly, weekly or hourly flow.
Include allowances & deductions
Pension, benefits, pre/post-tax options.
Simple 3-Step Process
Enter your gross pay and pay frequency
Annual, monthly, weekly or hourly.
Set your allowances and deductions
Personal allowance, pension, benefits, etc.
View detailed tax breakdown and rates
Tax bands, effective & marginal rates.
How to Use This Income Tax Calculator
Understanding Income Tax Calculations
Most systems are progressive: parts of your income are taxed in bands at different rates. We start with your gross pay, subtract eligible pre-tax deductions and allowances to get taxable income. We then apply the bands to compute total tax. Net pay equals gross minus tax and post-tax deductions. Effective rate is total tax divided by gross.
Formulas and Worked Example Explained
- Taxable income:
TI = max(0, Gross − PreTaxDeductions − Allowances) - Progressive tax (bands i):
Tax = Σi ( max(0, min(TI, Upperi) − Loweri) × Ratei ) - Net pay:
Net = Gross − Tax − PostTaxDeductions - Effective tax rate:
ETR = Tax / Gross; Marginal rate is the highest band rate that applies. - Frequency conversion: Annual ↔ Monthly ↔ Weekly via simple division/multiplication (e.g.,
Monthly ≈ Annual / 12).
Worked example (hypothetical bands): Gross £45,000; Allowance £12,000 ⇒ TI £33,000. Bands: 20% up to £30,000 of TI; 40% above. Tax = 20%×30,000 + 40%×3,000 = £6,000 + £1,200 = £7,200. Net ≈ £37,800. Effective rate ≈ 16%. (Illustrative only; actual bands and rules vary by location and year.)
Income Tax Calculator FAQs
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