Answers · UK 2025/26
Is maternity pay taxable in the UK?
Yes — Statutory Maternity Pay (SMP) is taxable income and subject to both Income Tax and National Insurance, just like regular wages. However, the £12,570 Personal Allowance usually absorbs most or all of the tax owed for lower earners. Maternity Allowance (for the self-employed) is not taxable.
Full answer
SMP is paid by your employer and treated as employment income for tax purposes, meaning PAYE applies in the normal way. **SMP rates for 2026/27:** - **First 6 weeks:** 90% of your Average Weekly Earnings (AWE) — no cap. - **Remaining 33 weeks:** £194.32 per week or 90% of AWE if lower. - **Total maternity pay period:** up to 39 weeks. Weeks 40–52 are unpaid (shared parental leave may apply). **Tax impact:** Because SMP payments are usually well below normal earnings — and spread across the year — many employees find they remain within their Personal Allowance (£12,570) and pay little or no tax. HMRC calculates this cumulatively via PAYE: if your earnings in the early high-pay weeks exceed your monthly allowance, tax is collected, then refunded in lower-pay months as your cumulative income catches up with your allowance. **NI on SMP:** Employee NI at 8% applies above the Primary Threshold (£12,570 annualised), but SMP is usually well below this so NI charges are minimal. **Maternity Allowance (self-employed):** £194.32 per week or 90% of AWE for self-employed or recently unemployed mothers. Critically, Maternity Allowance is paid by the DWP, not through PAYE, and is NOT taxable income — it does not affect your Personal Allowance or tax liability. **Top tip:** If you're going on maternity leave part-way through the tax year, you may be due a tax refund — contact HMRC or claim via self assessment. Do not let an emergency tax code artificially inflate your deductions.
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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.