United Kingdom Tax Calculator (2026) — Add or Reverse Tax
United Kingdom charges a 20% VAT, a 25% corporate tax rate, and a 45% top personal income tax rate.
How to use this calculator:
- Purchase mode — add VAT to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
- Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.
Understanding United Kingdom's Tax System
United Kingdom levies VAT at a standard rate of 20%. Its statutory corporate income tax rate is 25%, above the 23.58% global average. The top personal income tax rate is 45%.
Region
Europe
VAT rate
20%
vs. world average corporate rate
+1.4 points above the 23.58% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total, so separating revenue from tax collected — for bookkeeping or cross-border comparisons — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why selecting "Reverse" in the purchase-mode calculator above handles it exactly.
History & Context
UK corporation tax stood at 52% under Margaret Thatcher in 1980, reduced through the 1980s-1990s, and reached a modern low of 19% by 2017. The rate rose back to 25% effective April 2023 — the first increase in the main corporation tax rate since 1974 — after a brief 2022 political reversal in which the increase was cancelled and then reinstated within weeks under a different Chancellor.
The 2023 rate increase, alongside a new 19% small-profits rate for smaller companies, reflects a post-pandemic shift toward raising business tax revenue after the historic low of the 2017-2023 period, funding public spending pressures that built up during and after COVID-19.
Business Use Case
A small UK company with modest profits pays the 19% small-profits rate, while a larger company pays the full 25% main rate — with marginal relief smoothing the transition for companies in between, a two-tier structure reintroduced specifically alongside the 2023 rate rise.
Real-World Examples
VAT on a purchase
A £1,000.00 purchase in United Kingdom at 20%:
- Tax: £1,000.00 × 20% = £200.00
- Total: £1,200.00
Corporate tax on profit
£1,000.00 in company profit in United Kingdom at 25%:
- Tax: £1,000.00 × 25% = £250.00
- After-tax profit: £750.00
Extracting VAT from a receipt total (reverse)
A receipt shows a £1,499.00 tax-included total in United Kingdom at 20%:
- Pre-tax price: £1,499.00 ÷ (1 + 20%) = £1,249.17
- VAT: £1,499.00 − £1,249.17 = £249.83
Frequently Asked Questions — United Kingdom Taxes
What is the VAT rate in United Kingdom?▾
What is the corporate tax rate in United Kingdom?▾
What is the top personal income tax rate in United Kingdom?▾
How is tax calculated on a purchase in United Kingdom?▾
How do I reverse United Kingdom's VAT to find the price before tax?▾
References & Sources
Methodology: headline VAT/GST and corporate rates are sourced from the OECD Corporate Income Tax Rates Database and Tax Foundation's global rate tables for 2026; figures reflect the national statutory rate and do not include sub-national, sector-specific, or temporary rate variations unless noted in the text above. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions.
Rates last verified for 2026. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorPersonal Finance Content Strategist
Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.
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Tax-rate data, review & limitations
Jurisdiction: United Kingdom. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.
Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.
Primary sources
- OECD Tax Database
- Tax Foundation corporate-tax and VAT datasets
- Applicable national revenue authority guidance