ASI • Average Tax Calculator (England, 2025/26)

Age i

Age affects National Insurance. Under‑21s are exempt from employer NI until earnings exceed the Upper Secondary Threshold (£4,189/month or £50,270/year). Above State Pension age, employees and the self‑employed are exempt from paying NICs.

Income and Allowances

Employment Income (£)

Self-Employment Profit (£)

Pension via Salary Sacrifice (%)

Employee Pension Contribution (%)

Marriage Allowance

Blind Person’s Allowance

Investment Income

Dividends (£)

Savings Interest (£)

Capital Gains (£)

Property Gapital Gains (£)

Child Benefit (HICBC) i

High Income Child Benefit Charge (HICBC) applies when your adjusted net income exceeds £60,000, gradually withdrawing Child Benefit until it is fully removed at £80,000. Because this withdrawal functions like an extra tax on income within this band, it significantly increases your effective marginal tax rate (often above 50%) and raises your overall average tax rate for affected households.

Children

Summary

i

This calculator shows your average effective tax rate and how the Treasury allocates the money you pay. It is not a marginal tax calculator; instead it focuses on total taxes as a share of your income, to illustrate where each pound you contribute goes.

Include Employer NI i

Employer National Insurance Contributions (NICs) are legally paid by businesses, but the majority of their cost is ultimately borne by employees through lower wages. For the purposes of this calculator, we assume a 75% economic incidence rate, based on estimates from the Office for Budget Responsibility (OBR).

£—

Average tax rate: —%

Income Tax (earnings)

£—

NI (inc. self-employed)

£—

Employer NI (optional)

£—

Dividend Tax

£—

Savings Tax

£—

Capital Gains Tax

£—

Property CGT

£—

HICBC

£—

Detailed Breakdown

Component	Base	Rate / Note	£

Data: wheredoesitallgo.org

Export Your Results

Download a simple infographic showing your total tax and the three largest spending areas, ready to share on social media.

Download

Where Your Money Goes

Function	Share	Your £

This tool proportionally attributes your total annual tax to spending categories. UK taxes are not hypothecated and some spending is financed by borrowing. Figures are illustrative.

As this tool is experimental and intended solely to inform debate, it cannot be used for official tax advice and should not inform any financial or personal decisions. While every effort has been made to ensure accuracy, the Adam Smith Institute cannot be held liable for any conclusions or actions derived from its use.