Answers · UK 2025/26
Do students pay tax in the UK?
Yes — students pay Income Tax and National Insurance on the same basis as everyone else once earnings exceed the thresholds. There is no student exemption. But with the £12,570 Personal Allowance, a student earning under £12,570 a year pays no Income Tax, and many part-time students earn below it.
Full answer
There is a common myth that students are tax-free; they are not. Students pay Income Tax at 20% on earnings above the £12,570 Personal Allowance and National Insurance at 8% on earnings above the £12,570 Primary Threshold, exactly like other workers, for 2026/27. The key point is that the allowance is annual, so a student working part-time or only in the summer often earns less than £12,570 and therefore pays no Income Tax. Worked example: a student earning £8,000 from a summer job pays £0 Income Tax (below £12,570) and £0 NI on a cumulative basis, though NI can be deducted in a high-paying single month because it is calculated per pay period and is not refundable like overpaid Income Tax. If too much Income Tax is deducted because an employer used an emergency code, students can reclaim it from HMRC after the tax year. Maintenance loans and most scholarships are not taxable income. Student loan repayments only start once income exceeds the relevant threshold (£25,000 on Plan 5, £29,385 on Plan 2). The rules apply across the UK, with Scottish rates above the allowance. Use the Income Tax calculator to check whether a student owes anything.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.