How Much Can I Earn Before Paying Tax in the UK? 2025/26
The UK personal allowance for 2025/26 is £12,570 — so you can earn up to £12,570 tax-free. But National Insurance starts earlier, at £12,570/year too. Full breakdown with salary examples.
Quick answer
For the 2025/26 tax year (6 April 2025 to 5 April 2026), you can earn up to £12,570 without paying any Income Tax.
You also pay no employee National Insurance on earnings below £12,570 (the Primary Threshold is aligned with the Personal Allowance since July 2022).
If your total employment income is £12,570 or less, your tax and NI bill is £0.
Take-Home Pay Calculator
Calculate your net salary after income tax, National Insurance and student loan deductions.
Check your exact take-homeThe exact breakdown
| Earnings | Income Tax | Employee NI | Total deductions |
|---|---|---|---|
| £10,000 | £0 | £0 | £0 |
| £12,570 | £0 | £0 | £0 |
| £15,000 | £486 | £194 | £680 |
| £20,000 | £1,486 | £594 | £2,080 |
| £25,000 | £2,486 | £994 | £3,480 |
| £30,000 | £3,486 | £1,394 | £4,880 |
Calculations assume tax code 1257L, one job, resident in England, Wales or Northern Ireland. Scotland has different Income Tax rates.
What is the Personal Allowance?
The Personal Allowance is the amount of income you can earn each year without paying Income Tax. For 2025/26 it is £12,570. It applies to:
- Employment income (salary, wages, tips)
- Self-employment profits
- Rental income
- Pension income
- Bank interest and dividends (though these have their own allowances in addition)
The Personal Allowance has been frozen at £12,570 since April 2021 and will remain frozen until at least April 2028 under current government plans. With wages rising faster than the frozen threshold, more people are being pulled into Income Tax — this effect is known as fiscal drag.
When does National Insurance start?
Employee National Insurance (Class 1) starts at the Primary Threshold, which is £12,570 in 2025/26. You pay 8% on earnings between £12,570 and £50,270, then 2% on earnings above that.
Self-employed workers pay:
- Class 4 NI: 6% on profits £12,570–£50,270, then 2% above £50,270.
- Class 2 NI: Abolished from the 2024/25 tax year.
The allowance tapers above £100,000
If your income exceeds £100,000, the Personal Allowance is reduced by £1 for every £2 over £100,000:
| Income | Personal Allowance | Effect |
|---|---|---|
| Up to £100,000 | £12,570 | Full allowance |
| £110,000 | £7,570 | Halved allowance |
| £125,140 | £0 | No allowance |
| Over £125,140 | £0 | Additional rate (45%) applies from £1 |
This withdrawal creates a 60% effective marginal rate between £100,000 and £125,140 — one of the oddities of the UK tax system.
Income Tax Calculator
Work out how much income tax you owe using the latest 2025/26 UK tax bands.
Income Tax calculatorMarriage Allowance — sharing the allowance
If you are married or in a civil partnership and one partner earns less than £12,570, they can transfer up to £1,260 of their unused Personal Allowance to the higher earner. This saves the couple up to £252 per year in Income Tax.
You can backdate a claim up to 4 tax years — potentially worth up to £1,008 if you've never claimed.
What if I have multiple income sources?
The Personal Allowance is applied across all your income combined — not separately for each source. For example:
- Part-time employment income: £8,000
- Self-employment profit: £5,000
- Total: £13,000
You pay Income Tax on £13,000 − £12,570 = £430 × 20% = £86 in tax. Just £86 for the year.
Scotland — different rates but same allowance
Scottish taxpayers have the same Personal Allowance (£12,570) but pay Scottish Income Tax rates above it:
| Band | Income | Scottish rate |
|---|---|---|
| Starter | £12,571–£15,397 | 19% |
| Basic | £15,398–£27,491 | 20% |
| Intermediate | £27,492–£43,662 | 21% |
| Higher | £43,663–£75,000 | 42% |
| Advanced | £75,001–£125,140 | 45% |
| Top | Over £125,140 | 48% |
Scottish earners generally pay more tax than rUK earners above £28,867 due to the Intermediate band and earlier Higher rate.
Practical tips for staying under or near the threshold
- If you earn under £12,570: No action needed — you owe nothing.
- If you earn just above: Check whether your employer is using the right tax code (1257L for most people). An incorrect tax code can result in overpayment.
- If you're self-employed: Even if profits are below £12,570, file a Self Assessment if gross income exceeds £1,000. The Trading Allowance (£1,000 deduction) means you may owe nothing.
- If you earn near £100,000: Use pension contributions to bring adjusted net income below £100,000 and preserve the full £12,570 allowance.
Sources
- HMRC: Income Tax rates and Personal Allowance
- HMRC: National Insurance rates and categories
- Scottish Government: Scottish Income Tax 2025/26
Frequently asked questions
How much can I earn before paying income tax in 2025/26?
The Income Tax-free threshold is £12,570 — the Personal Allowance. You pay no Income Tax on the first £12,570 you earn in the 2025/26 tax year (6 April 2025 to 5 April 2026). Above that, the basic rate of 20% applies up to £50,270.
Do I pay National Insurance on earnings under £12,570?
No. The Primary Threshold (the point where employee NI starts) is also £12,570 in 2025/26. If you earn exactly £12,570 or less, you pay neither Income Tax nor National Insurance as an employee. Self-employed Class 4 NI starts at £12,570 as well.
What happens if I have more than one job?
Your Personal Allowance is applied to one job (usually your main job via tax code 1257L). Income from a second job is typically taxed at BR (basic rate — 20%) from the first pound, because the allowance is already used. If both jobs keep you under £12,570 combined, you can apply to HMRC to split the allowance.
Do I pay tax if I'm self-employed and earn under £12,570?
You pay no Income Tax below £12,570 whether employed or self-employed. However, if you are self-employed you may still need to file a Self Assessment return if your gross income exceeds £1,000 (the Trading Allowance). Class 4 NI starts at £12,570 profits; Class 2 NI was abolished for 2024/25 onwards.
Try the calculators
Take-Home Pay Calculator
Calculate your net salary after income tax, National Insurance and student loan deductions.
Income Tax Calculator
Work out how much income tax you owe using the latest 2025/26 UK tax bands.
National Insurance Calculator
Calculate your National Insurance contributions for 2025/26.
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