UK Income Tax Bands 2025/26

The complete reference for UK income tax rates, bands and thresholds for the 2025/26 tax year (6 April 2025 to 5 April 2026). Covers England, Wales, Northern Ireland and Scotland.

Updated for the 2025/26 tax year. All rates sourced from HMRC.

England, Wales & Northern Ireland Income Tax Bands 2025/26

These rates apply to taxpayers in England, Wales and Northern Ireland. Tax is calculated progressively — you only pay the rate on income within each band.

Band Taxable Income Tax Rate
Personal Allowance £0 – £12,570 0%
Basic rate £12,571 – £50,270 20%
Higher rate £50,271 – £125,140 40%
Additional rate Over £125,140 45%

Key point: The basic rate band is £37,700. Added to the £12,570 Personal Allowance, this means you start paying higher rate tax on income above £50,270.

Scottish Income Tax Bands 2025/26

Scotland sets its own income tax rates through the Scottish Parliament. For 2025/26, Scotland has six tax bands compared to three in the rest of the UK. The Personal Allowance (£12,570) is the same across the UK.

Band Taxable Income Tax Rate
Personal Allowance £0 – £12,570 0%
Starter rate £12,571 – £14,876 19%
Basic rate £14,877 – £26,561 20%
Intermediate rate £26,562 – £43,662 21%
Higher rate £43,663 – £75,000 42%
Advanced rate £75,001 – £125,140 45%
Top rate Over £125,140 48%

Scotland vs England: Scottish taxpayers pay slightly less on the first £2,306 of taxable income (19% vs 20%), but pay more on income above approximately £28,000 due to the higher Intermediate, Higher, Advanced and Top rates. Scottish tax codes start with an “S” prefix (e.g. S1257L).

Personal Allowance & the £100,000 Taper

The standard Personal Allowance

For 2025/26, every individual gets a Personal Allowance of £12,570. This is the amount you can earn before paying any income tax. The Personal Allowance has been frozen at £12,570 since 2021/22 as part of a government policy to raise revenue without increasing headline tax rates.

The £100,000 taper

If your “adjusted net income” exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means:

This taper creates an effective marginal tax rate of approximately 60% (or 62% including NI) in the £100,000–£125,140 income range. This is known as the 60% tax trap.

The 60% tax trap

Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 earned. The lost allowance is taxed at 40%, adding an effective 20% on top of the 40% higher rate, creating a combined marginal rate of 60% (plus 2% NI = 62%). Read our full guide to the 60% tax trap.

How Tax is Calculated — Worked Examples

Example 1: £35,000 salary (England/Wales/NI)

Component Calculation Amount
Personal Allowance (0%) First £12,570 £0 tax
Basic rate (20%) £22,430 × 20% £4,486
National Insurance 8% on £12,571–£35,000 £1,794
Total deductions £6,280
Annual take-home pay £35,000 − £6,280 £28,720

Effective tax rate: 17.9%. Monthly take-home: £2,393. Full £35K breakdown →

Example 2: £60,000 salary (England/Wales/NI)

Component Calculation Amount
Personal Allowance (0%) First £12,570 £0 tax
Basic rate (20%) £37,700 × 20% £7,540
Higher rate (40%) £9,730 × 40% £3,892
National Insurance 8% + 2% above UEL £3,211
Total deductions £14,643
Annual take-home pay £60,000 − £14,643 £45,357

Effective tax rate: 24.4%. Monthly take-home: £3,780. Full £60K breakdown →

Tax Band History: 2020/21 to 2025/26

The table below shows how income tax bands for England, Wales and Northern Ireland have changed (or not) over recent years. Note the “fiscal drag” effect — thresholds frozen while wages rise.

Tax Year Personal Allowance Basic Rate Band Higher Rate Band Additional Rate Band
2020/21 £12,500 £12,501 – £50,000 at 20% £50,001 – £150,000 at 40% Over £150,000 at 45%
2021/22 £12,570 £12,571 – £50,270 at 20% £50,271 – £150,000 at 40% Over £150,000 at 45%
2022/23 £12,570 £12,571 – £50,270 at 20% £50,271 – £150,000 at 40% Over £150,000 at 45%
2023/24 £12,570 £12,571 – £50,270 at 20% £50,271 – £125,140 at 40% Over £125,140 at 45%
2024/25 £12,570 £12,571 – £50,270 at 20% £50,271 – £125,140 at 40% Over £125,140 at 45%
2025/26 Current £12,570 £12,571 – £50,270 at 20% £50,271 – £125,140 at 40% Over £125,140 at 45%

The freeze effect (“fiscal drag”)

The Personal Allowance and basic rate band have been frozen since 2021/22. With average wages rising by approximately 5–6% per year, this freeze pulls more income into higher tax bands each year without any headline tax increase. The additional rate threshold was also reduced from £150,000 to £125,140 in April 2023, bringing more taxpayers into the top rate.

Marriage Allowance

Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your spouse or civil partner, provided:

The recipient’s tax bill is reduced by up to £252 per year (20% of £1,260). You can backdate a claim by up to 4 years.

Who benefits? Couples where one partner earns below the Personal Allowance (e.g. not working or working part-time) and the other earns between £12,571 and £50,270. It is not available to higher or additional rate taxpayers.

Blind Person’s Allowance

Blind Person’s Allowance (BPA) is an additional tax-free allowance of £3,070 for the 2025/26 tax year. It is available to anyone who is:

BPA is added to your Personal Allowance, giving a total tax-free amount of £15,640 (£12,570 + £3,070). If you cannot use all of the allowance yourself, you can transfer the surplus to your spouse or civil partner.

Frequently Asked Questions

What are the UK income tax bands for 2025/26?
For England, Wales and Northern Ireland: Personal Allowance £0–£12,570 (0%), Basic rate £12,571–£50,270 (20%), Higher rate £50,271–£125,140 (40%), Additional rate over £125,140 (45%). Scotland has six bands: Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, and Top 48%.
What is the Personal Allowance for 2025/26?
The Personal Allowance is £12,570 for the 2025/26 tax year. This is the amount you can earn before paying any income tax. It has been frozen at this level since 2021/22 and is expected to remain frozen until at least 2027/28.
What happens to my Personal Allowance if I earn over £100,000?
Your Personal Allowance is reduced by £1 for every £2 you earn over £100,000. This means it is completely lost at £125,140. This creates an effective marginal tax rate of around 60% between £100,000 and £125,140.
Are Scottish tax bands different from English tax bands?
Yes. Scotland sets its own income tax rates and bands. For 2025/26, Scotland has six bands compared to three in the rest of the UK. Scottish taxpayers generally pay more tax on incomes above around £28,000, but slightly less on lower incomes due to the 19% Starter rate.
How long have tax bands been frozen?
The Personal Allowance has been frozen at £12,570 since 2021/22. The basic rate band has been frozen at £37,700 since 2021/22. The additional rate threshold was reduced from £150,000 to £125,140 in April 2023. These freezes are a form of 'fiscal drag' — as wages rise with inflation, more people are pushed into higher tax bands.
What is Marriage Allowance?
Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your spouse or civil partner if you earn less than £12,570 and they are a basic rate taxpayer. This can reduce their tax by up to £252 per year.
What is Blind Person's Allowance?
Blind Person's Allowance is an extra tax allowance of £3,070 for the 2025/26 tax year. It is available to anyone registered as blind or severely sight impaired. It is added to your Personal Allowance, giving you a total tax-free amount of £15,640.
How is income tax calculated?
Income tax is progressive — you only pay the higher rate on the portion of income that falls in each band. For example, on a £35,000 salary, you pay 0% on the first £12,570, then 20% on the remaining £22,430. You do not pay 20% on the entire £35,000.

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