2025 tax brackets reference
The following tables show the bracket structures used by this calculator. These are educational reference values published by the IRS and HMRC; they are updated annually.
| US 2025 federal bracket (single filer) | Marginal rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Above $626,350 | 37% |
- US: This calculator uses the 2025 IRS federal income tax brackets for single filers. Married filing jointly, head of household, and other filing statuses have different bracket thresholds. The standard deduction for 2025 is $15,000 for single filers; this calculator treats the income input as taxable income (after deductions). State and local income taxes, Social Security (6.2%), and Medicare (1.45%) are not included.
- UK: This calculator uses the 2025-26 HMRC income tax bands for England, Wales, and Northern Ireland. Scottish income tax rates differ from the rest of the UK and are not modeled. National Insurance contributions (Class 1 for employees) are not included and can materially affect the total deduction from earnings.
- UK personal allowance tapering: for income above £100,000, the personal allowance is reduced by £1 for every £2 of income above £100,000, eliminating it entirely at £125,140. This calculator does not model the tapering effect.
- These tax figures are for educational reference. Tax bracket thresholds and rates are revised annually by the IRS (US) and HMRC (UK). Always consult current official guidance or a tax professional for actual filing.
What is a progressive income tax?
A progressive income tax applies increasing marginal rates to successive bands (or brackets) of taxable income. The rate that applies to each additional dollar or pound of income rises as income increases, but only the income within each band is taxed at that band's rate. The overall (effective) rate is therefore always lower than the highest marginal rate paid — a distinction that is frequently misunderstood.
In the United States, the federal income tax uses seven brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37% for 2025). Each bracket's threshold is indexed annually for inflation by the IRS. This calculator uses the 2025 thresholds for single filers: 10% on income up to $11,925; 12% from $11,925 to $48,475; 22% from $48,475 to $103,350; 24% from $103,350 to $197,300; 32% from $197,300 to $250,525; 35% from $250,525 to $626,350; and 37% on income above $626,350. These are pre-deduction taxable income thresholds; actual withholding depends on deductions and filing status.
In the United Kingdom, the 2025-26 income tax system includes a personal allowance of £12,570, on which no tax is due. Income from £12,571 to £50,270 is taxed at 20% (basic rate); from £50,271 to £125,140 at 40% (higher rate); and above £125,140 at 45% (additional rate). National Insurance contributions and Scottish income tax rates are not included in this calculator. These thresholds are set by HMRC and are updated annually in the UK Budget.
How to use this tax calculator
- Enter your annual gross income.
- Select the tax system: US federal (2025, single filer), UK income tax (2025-26), or a custom flat rate.
- If using the custom option, enter a flat percentage rate.
- Read the estimated tax due, after-tax income, and effective tax rate.
- Note that US results exclude state taxes, Social Security, and Medicare. UK results exclude National Insurance. These figures are illustrative and should not be used for filing purposes.
Progressive tax computation
Tax is computed by iterating through the bracket table. For each bracket, the taxable income that falls within the bracket range is multiplied by the bracket's marginal rate. These amounts are summed to produce total tax due. The effective rate is total tax divided by gross income.
Frequently asked questions
What is a marginal tax rate?
A marginal tax rate is the rate applied to the next additional dollar (or pound) of income. In a progressive system, this rate increases in steps as income rises. The marginal rate applies only to income within its bracket — not to all income. For example, a US single filer with $60,000 of taxable income pays 10% on the first $11,925, 12% on the next $36,550, and 22% on the remaining $11,525, not 22% on the entire $60,000.
What is an effective tax rate?
The effective tax rate is total tax paid divided by total gross income, expressed as a percentage. It represents the average rate across all income and is always lower than the highest marginal rate applicable. A US single filer with $60,000 of taxable income in 2025 pays approximately $8,717 in federal income tax, an effective rate of about 14.5%, even though their highest marginal bracket is 22%.
What US taxes are not included in this calculator?
This calculator models only the 2025 US federal income tax for single filers. It does not include: state income taxes (which range from 0% in states like Texas and Florida to over 13% in California at the top marginal rate); Social Security tax (6.2% of wages up to the annual wage base); Medicare tax (1.45% of all wages); the Net Investment Income Tax (3.8% on investment income above thresholds); or the Alternative Minimum Tax (AMT).
What is the UK personal allowance?
The UK personal allowance is the amount of income on which no income tax is charged. For the 2025-26 tax year, the personal allowance is £12,570. Income up to this threshold is tax-free. For taxpayers with income above £100,000, the personal allowance is reduced by £1 for every £2 of income above £100,000, and it is fully withdrawn at £125,140. National Insurance is a separate charge and is not included in this calculator.
How often do tax brackets change?
US federal income tax bracket thresholds are adjusted annually for inflation by the IRS, based on the Chained Consumer Price Index (C-CPI-U). The marginal rates themselves require an Act of Congress to change. In the UK, income tax bands and the personal allowance are set by Parliament each year in the Budget and are announced by HMRC. Users of this calculator should verify they are using the current year's figures from official IRS or HMRC sources for any actual tax planning.
Does the UK calculator include National Insurance?
No. This calculator models only UK income tax bands and the personal allowance. National Insurance contributions (NICs) are a separate charge paid by employees, employers, and the self-employed. For employed individuals, Class 1 employee NICs in 2025-26 are 8% on weekly earnings between £242 and £967 (£967 being the upper earnings limit), and 2% on earnings above that. NICs materially reduce take-home pay and should be accounted for separately.
References
- Internal Revenue Service (IRS). Revenue Procedure 2024-61: 2025 Tax Rate Schedules and Inflation Adjustments. irs.gov.
- HM Revenue and Customs (HMRC). Income Tax rates and Personal Allowances 2025-26. gov.uk/income-tax-rates.
- Internal Revenue Service (IRS). Publication 505: Tax Withholding and Estimated Tax (2025). irs.gov.
- HM Revenue and Customs (HMRC). National Insurance rates and categories (2025-26). gov.uk.
- Congressional Budget Office (CBO). The Distribution of Household Income (most recent edition). cbo.gov.