Where Your Tax Goes UK (2026/27)

When you pay Income Tax and National Insurance in the UK, your money funds public services like the NHS, education, and social protection. In 2023-24, total public sector receipts reached £1,058 billion, while total managed expenditure was £1,216.8 billion. The largest share of public spending goes to social protection (welfare and pensions) and health, followed by general public services, education, and economic affairs. Our interactive calculator below uses the latest HM Treasury Public Expenditure Statistical Analyses (PESA) 2024 outturn figures to show you an illustrative breakdown of exactly how your personal tax bill is apportioned across these departments.

Key 2026/27 UK Tax Figures & Thresholds

  • Personal Allowance: £12,570 tax-free allowance (tapers by £1 per £2 of income above £100,000; reaches £0 at £125,140). Source: GOV.UK
  • Rest of UK Income Tax: Basic 20% (£12,571–£50,270), Higher 40% (£50,271–£125,140), Additional 45% (above £125,140).
  • Scottish Income Tax: 6 bands from 19% Starter up to 48% Top Rate on earnings over £125,140. Source: Scottish Gov / HMRC
  • Employee National Insurance (Class 1): Primary threshold £12,570/yr; 8% rate up to £50,270; 2% rate above £50,270. (UK-wide system). Source: HMRC
  • Student Loan Repayment Thresholds: Plan 1 £26,900 (9%), Plan 2 £29,385 (9%), Plan 4 £33,795 (9%), Plan 5 £25,000 (9%), Postgraduate £21,000 (6%). Source: GOV.UK
  • Stamp Duty (SDLT — England & NI): Nil rate up to £125,000 (or £300,000 for first-time buyers on homes up to £500,000). 5% surcharge for additional properties. Source: GOV.UK
  • VAT Rates & Thresholds: Standard rate 20%, reduced rate 5%, zero rate 0%. Registration threshold £90,000 rolling 12 months. Source: GOV.UK
## Calculate Your Tax Breakdown Enter your gross annual salary to see how your Income Tax and National Insurance contributions are distributed.
Methodology Note: The apportionment shown is illustrative. It is calculated by dividing your total personal tax (Income Tax + Employee NICs) by the total UK public sector receipts (£1,058 billion) and multiplying by the departmental spend. All figures are based on the latest HMT Public Expenditure Statistical Analyses (PESA) 2024 (2023-24 outturn).

For Journalists & Researchers

The figures in this interactive tool are drawn directly from HMT PESA 2024 (Table 4.2: Total Expenditure on Services by function) and ONS Public Sector Finances. For media enquiries or to cite these statistics, you may quote: "According to mytakehomecalc.co.uk's analysis of HMT PESA 2024 data, a UK worker earning £40,000 contributes approximately £2,206 towards Health and £3,602 towards Social Protection annually."

## How the calculation works This tool calculates your Income Tax and Class 1 National Insurance contributions for the 2026/27 tax year based on a standard 1257L tax code. We then take your total tax bill and apportion it based on the official spending figures from HM Treasury’s PESA 2024 release (Table 4.2). The calculation uses the formula: `(Your Tax ÷ Total UK Tax Receipts) × Departmental Spend`. Because the UK government typically spends more than it collects in revenue (running a deficit), your allocated “spend” across all departments will add up to slightly more than the actual tax you paid. This illustrates the true cost of the services provided on your behalf, funded by both your taxes and government borrowing.
## Frequently Asked Questions
Where does the UK tax money go?
In the UK, tax revenue is primarily spent on public services and social welfare. According to the latest figures, the largest portions go towards social protection (including the State Pension and welfare), health services like the NHS, and education, with a significant amount also paying interest on national debt.
What is the UK government’s biggest expense?
The UK government’s biggest single expense is social protection. This category costs hundreds of billions annually and covers the State Pension, Universal Credit, disability benefits, and other welfare payments, accounting for roughly a third of all public spending.
Where does the UK get most of its tax revenue?
The UK gets the majority of its tax revenue from three main sources: Income Tax, National Insurance Contributions (NICs), and Value Added Tax (VAT). Together, these typically account for over 60% of all government receipts.
What is the breakdown of UK income tax revenue?
Income Tax revenue is not hypothecated (ring-fenced) for specific departments. Instead, it goes into the Consolidated Fund along with most other taxes, which the government then distributes across all public services such as health, education, and defence according to the annual Budget.
How much does the top 1% pay in taxes in the UK?
The top 1% of earners contribute a disproportionately large share of Income Tax. Official HMRC statistics show that the top 1% pay nearly 30% of all Income Tax collected in the UK, reflecting the progressive nature of the tax system.
Do the richest people in the UK pay the most taxes?
Yes, the highest earners pay the most in absolute terms and as a proportion of total Income Tax revenue. The progressive tax system means higher earners not only pay tax on a larger income but also pay higher marginal rates of 40% and 45%.
Who pays 45% tax in the UK?
The 45% additional rate of Income Tax is paid by individuals earning over £125,140 a year. This threshold was lowered from £150,000 in April 2023, bringing more high earners into the top tax bracket.
Does anyone pay 60% tax in the UK?
Yes, due to the withdrawal of the tax-free Personal Allowance. For every £2 earned between £100,000 and £125,140, £1 of the allowance is lost. This creates an effective marginal Income Tax rate of 60% in that specific income band.
Is UK tax the highest it has ever been?
The UK’s tax burden—measured as tax revenue as a percentage of GDP—is currently at its highest level since the years immediately following the Second World War. This is driven by frozen tax thresholds (fiscal drag) and increased public spending demands.
How much debt is the UK in?
The UK’s public sector net debt stands at over £2.7 trillion, which is roughly equivalent to 100% of the country’s Gross Domestic Product (GDP). Servicing this debt costs the government over £100 billion annually in interest payments.
How much of my tax goes to the NHS?
Health is the second-largest area of public spending, totalling £221.0 billion in 2023-24. Roughly 20% of your total tax contribution is apportioned to health services, which primarily funds the NHS across the UK nations.
Does my tax pay for the national debt?
Yes. A significant portion of tax revenue goes towards servicing the public sector debt. In 2023-24, public sector debt interest amounted to £121.1 billion, making it one of the largest single expenses after social protection and health.