Explainers
Income tax guides
Short, practical explanations of how income tax works in each country, what changed for the 2026-27 tax year, and how to read the numbers in the calculator.
Basics
How income tax is calculated
A plain-English guide to how income tax is worked out: taxable income, progressive bands, deductions and credits, and marginal versus effective rates.
5 min read · Updated 1 November 2026
Read guideMarginal vs effective tax rate
The marginal rate is the rate on your next unit of income; the effective rate is total tax divided by gross. Two verified examples show why both matter.
7 min read · Updated 1 November 2026
Read guideHow taxable income is calculated
Gross salary is not taxable income. Standard deductions, pre-tax contributions and the difference between deductions and credits, with verified 2026-27 figures.
6 min read · Updated 1 November 2026
Read guideTax year dates around the world
Pakistan, India, the UK, the US and China do not share a tax year. The dates for 2026-27, why the UK starts on 6 April, and why 2026 is a misleading label.
6 min read · Updated 1 November 2026
Read guidePakistan
Pakistan salary tax 2026-27
Pakistan salary tax for 2026-27: eight salaried slabs, the abolished 9% surcharge, a PKR 3,000,000 worked example and what the monthly deduction leaves out.
6 min read · Updated 1 November 2026
Read guidePakistan surcharge explained
The 9% surcharge that applied above PKR 10 million in 2025-26 was abolished for 2026-27. What it was, who paid it and why older years still show it.
6 min read · Updated 1 November 2026
Read guideIndia
India: old vs new tax regime in FY 2026-27
India old versus new tax regime for FY 2026-27: slabs, standard deduction, Section 87A rebate, cess and a worked example on a salary of INR 1,500,000.
6 min read · Updated 1 November 2026
Read guideIndia Section 87A rebate and marginal relief
India Section 87A gives a rebate up to INR 60,000 in the new regime, with marginal relief just above the threshold and a 4% cess on the result.
6 min read · Updated 1 November 2026
Read guideUK
UK take-home pay in 2026-27
UK take-home pay for 2026-27: the personal allowance, the GBP 100,000 taper, income tax bands, National Insurance and a worked example on GBP 50,000.
6 min read · Updated 1 November 2026
Read guideThe UK personal allowance taper
Above GBP 100,000 the UK personal allowance falls by GBP 1 for every GBP 2 of income, creating a 60% marginal rate up to GBP 125,140, with a worked example.
6 min read · Updated 1 November 2026
Read guideUS
US federal income tax brackets for 2026
US federal income tax brackets for 2026: single and joint rates, the standard deduction, FICA and a worked example on a USD 60,000 single salary.
6 min read · Updated 1 November 2026
Read guideUS filing status explained
Filing status sets the US standard deduction and the width of every bracket. The 2026 amounts, the single bands, FICA and why separate returns rarely win.
7 min read · Updated 1 November 2026
Read guideChina
China individual income tax in 2026
China individual income tax in 2026: the seven annual rates, the CNY 60,000 basic deduction, social insurance and a worked example on CNY 300,000.
6 min read · Updated 1 November 2026
Read guideChina special additional deductions
China allows special additional deductions for children, elderly care, housing and medical costs. What each is worth and why results are an upper bound.
7 min read · Updated 1 November 2026
Read guidePrefer to just run the numbers?
The calculators apply the same rules described in these guides and show the band-by-band breakdown.