How much can I earn before paying tax in 2025/26?

You can earn up to £12,570 per year before paying income tax. This is the Personal Allowance for the 2025/26 tax year. It applies to all UK taxpayers and has been frozen at this level since 2021/22.

What other tax-free allowances are there?

In addition to the £12,570 Personal Allowance, you get: £500 dividend allowance (tax-free dividends), £1,000 Personal Savings Allowance (basic rate taxpayers), £1,000 trading allowance (for self-employed income), £3,000 CGT annual exempt amount, and £12,570 NI Primary Threshold (no NI below this).

Do I pay National Insurance on earnings below £12,570?

No. The NI Primary Threshold is aligned with the Personal Allowance at £12,570. You don't pay employee NI on earnings below this amount, though you build NI credits from £6,396.

How Much Can I Earn Tax-Free in 2025/26?

You can earn up to £12,570 per year before paying any income tax in the 2025/26 tax year. This is your Personal Allowance. It applies to employment income, self-employed profits, pension income, and most other taxable income. The Personal Allowance has been frozen at £12,570 since 2021/22.

All tax-free allowances (2025/26)

Allowance	Amount	Applies to
Personal Allowance	£12,570	All income
NI Primary Threshold	£12,570	Employment income
Dividend Allowance	£500	Dividend income
Personal Savings Allowance	£1,000	Savings interest (basic rate)
Trading Allowance	£1,000	Self-employed income
Property Allowance	£1,000	Rental income
CGT Annual Exempt Amount	£3,000	Capital gains
Marriage Allowance	£1,260	Transferable to spouse

Important caveats

The Personal Allowance is reduced if you earn over £100,000 (£1 lost for every £2 above the threshold). It is completely withdrawn at £125,140.
The Personal Savings Allowance is £1,000 for basic rate taxpayers, £500 for higher rate, and £0 for additional rate.
These allowances generally cannot be combined or stacked — they apply to different types of income.
ISA savings are completely tax-free with no limit on the growth (annual contribution limit: £20,000).

Source: HMRC — Income Tax rates and Personal Allowances. Last updated: April 2025.