Income Tax Rates & Allowances (UK excluding Scotland)
Income Tax is a tax you pay on your income. You do not normally pay tax on all of your income as most people in the UK get a Personal Allowance of tax-free income. This is the amount of income you can have before you pay tax. Tax is then applied to bands of income at certain rates.
Different bands and rates of income tax apply in Scotland - Income Tax Rates & Allowances (Scotland)
Personal Allowances
| 2025/26 | 2024/25 | 2023/24 | 2022/2023 | |
|---|---|---|---|---|
| Single person | £12,570 | £12,570 | £12,570 | £12,570 |
- The personal allowance goes down by £1 for every £2 that an individual's adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above.
Income tax rates and taxable bands (UK excluding Scotland)
| 2025/26 | 2024/25 | 2023/24 | 2022/23 | |
|---|---|---|---|---|
| Basic tax rate | 20% | 20% | 20% | 20% |
| Income taxed at basic rate |
£37,700 | £37,700 | £37,700 | £37,700 |
| Income taxed at higher rate of 40% if income more than |
£37,700 plus personal allowance | £37,700 plus personal allowance | £37,700 plus personal allowance | £37,700 plus personal allowance |
| Income taxed at additional rate of 45% if income more than |
£125,1401 | £125,1401 | £125,1401 | £150,0001 |
1 Personal allowance is reduced by £1 for every £2 earned over £100,000
2 Assumes the individual is in receipt of the standard UK personal allowance.
Further information
Disclaimer
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.