UK Income Tax Bands and Rates Reference 2025/26
Quick reference for UK income tax 2025/26: rates and bands for England/Wales/NI and Scotland, plus Personal Allowance, NI thresholds, dividend rates, savings allowance and student loan thresholds
Quick answer
A complete reference for UK personal tax in 2025/26 (6 April 2025 to 5 April 2026).
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Open Take-Home Pay calculatorIncome Tax — England, Wales, Northern Ireland
| Band | Rate | Earnings band |
|---|---|---|
| Personal Allowance | 0% | £0 – £12,570 |
| Basic rate | 20% | £12,571 – £50,270 |
| Higher rate | 40% | £50,271 – £125,140 |
| Additional rate | 45% | Over £125,140 |
Personal Allowance taper: PA reduces by £1 for every £2 earned above £100,000. Fully lost at £125,140 — creates effective 60% marginal rate in this band.
Income Tax — Scotland
Six bands. Personal Allowance £12,570 applies UK-wide; Scottish bands sit on top.
| Band | Rate | Earnings band (gross) |
|---|---|---|
| Personal Allowance | 0% | £0 – £12,570 |
| Starter rate | 19% | £12,571 – £15,397 |
| Basic rate | 20% | £15,398 – £27,491 |
| Intermediate rate | 21% | £27,492 – £43,662 |
| Higher rate | 42% | £43,663 – £75,000 |
| Advanced rate | 45% | £75,001 – £125,140 |
| Top rate | 48% | Over £125,140 |
Welsh Rates of Income Tax (WRIT) match Westminster rates exactly since 2019.
Income Tax Calculator
Work out how much income tax you owe using the latest 2025/26 UK tax bands.
Income tax calculatorNational Insurance — Employee (Class 1)
| Earnings | Rate |
|---|---|
| Below £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Over £50,270 | 2% |
National Insurance — Employer (Class 1)
| Earnings (per employee) | Rate |
|---|---|
| Below £5,000 | 0% |
| Over £5,000 | 15% |
Raised from 13.8% on 6 April 2025; Secondary Threshold lowered from £9,100.
National Insurance — Self-Employed
| Class | Rate / amount | Earnings |
|---|---|---|
| Class 2 | Effectively abolished | Above SPT £6,725 — credited automatically |
| Class 3 (voluntary) | £17.45/week | Voluntary, to fill gaps |
| Class 4 | 6% | £12,571 – £50,270 profits |
| Class 4 | 2% | Over £50,270 profits |
Dividend Tax
| Band | Rate |
|---|---|
| Allowance | 0% on first £500 |
| Basic rate band | 8.75% |
| Higher rate band | 33.75% |
| Additional rate | 39.35% |
Dividend allowance was halved from £1,000 to £500 in April 2024.
Capital Gains Tax (since 30 October 2024)
| Asset | Basic-rate band | Higher-rate band |
|---|---|---|
| Shares, crypto, other property | 18% | 24% |
| Residential property (non-main) | 18% | 24% |
| Business Asset Disposal Relief | 14% | 14% (rises to 18% from April 2026) |
Annual exemption: £3,000.
Personal Savings Allowance
| Tax band | PSA |
|---|---|
| Basic rate (20%) | £1,000 |
| Higher rate (40%) | £500 |
| Additional rate (45%) | £0 |
Starter savings rate: extra £5,000 tax-free if income under £17,570.
ISA Allowance
| ISA type | Allowance 2025/26 |
|---|---|
| Total ISA | £20,000 |
| LISA sub-limit | £4,000 |
| Junior ISA | £9,000 |
Pension Contributions
| Allowance | Amount |
|---|---|
| Annual allowance | £60,000 |
| Tapered minimum | £10,000 (above £260k income) |
| Lump Sum Allowance | £268,275 |
| Lump Sum + DB Allowance | £1,073,100 |
Inheritance Tax
| Threshold | Amount |
|---|---|
| Nil-Rate Band | £325,000 |
| Residence Nil-Rate Band | £175,000 |
| Combined per person | £500,000 |
| Combined per married couple | £1,000,000 |
| Rate above thresholds | 40% (36% if 10%+ to charity) |
April 2027 change: pension pots will be included in IHT estate.
Stamp Duty Land Tax — England & NI
| Standard rate (home-mover) | First-time buyer |
|---|---|
| 0% to £125,000 | 0% to £300,000 |
| 2% £125,001–£250,000 | 5% £300k–£500k |
| 5% £250,001–£925,000 | (no relief above £500k) |
| 10% £925k–£1.5m | |
| 12% over £1.5m |
Additional Dwelling Supplement: +5% on whole price. Non-resident surcharge: +2%.
LBTT — Scotland
| Rate | Standard | FTB |
|---|---|---|
| 0% | to £145,000 | to £175,000 |
| 2% | £145k–£250k | £175k–£250k |
| 5% | £250k–£325k | same |
| 10% | £325k–£750k | same |
| 12% | over £750k | same |
ADS: +8%.
LTT — Wales
| Rate | Standard |
|---|---|
| 0% | to £225,000 |
| 6% | £225k–£400k |
| 7.5% | £400k–£750k |
| 10% | £750k–£1.5m |
| 12% | over £1.5m |
(No first-time buyer relief.)
VAT
- Standard rate: 20%.
- Reduced rate: 5% (domestic energy, children's car seats, etc.).
- Zero rate: 0% (most food, books, children's clothes).
- Registration threshold: £90,000 of taxable turnover.
- Deregistration threshold: £88,000.
Corporation Tax
| Profits | Rate |
|---|---|
| Up to £50,000 | 19% (small profits) |
| £50k – £250k | Marginal — effective 26.5% on slice |
| Over £250,000 | 25% (main rate) |
Student Loan Plans 2025/26
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £26,065 | 9% |
| Plan 2 | £28,470 | 9% |
| Plan 4 (Scotland) | £32,745 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
National Living Wage / Minimum Wage (from 1 April 2025)
| Age band | Hourly rate |
|---|---|
| 21+ (NLW) | £12.21 |
| 18-20 | £10.00 |
| 16-17 / Apprentice | £7.55 |
| Accommodation offset | £10.66/day |
State Pension (from April 2025)
| Pension | Weekly | Annual |
|---|---|---|
| Full new State Pension | £230.25 | £11,973 |
| Full basic State Pension | £176.45 | £9,175 |
Both rise annually under the triple lock through at least 2029/30.
Statutory pay rates 2025/26
| Payment | Weekly rate |
|---|---|
| Statutory Sick Pay | £118.75 |
| Statutory Maternity Pay (after 6 wks) | £187.18 |
| Statutory Paternity Pay (2 wks) | £187.18 |
| Shared Parental Pay | £187.18 |
| Statutory Adoption Pay (after 6 wks) | £187.18 |
| Statutory Bereavement Pay | £187.18 |
Child Benefit 2025/26
- Eldest/only child: £26.05/week
- Each additional: £17.25/week
- HICBC threshold: clawback starts £60,000; full at £80,000
Where to find the latest
- gov.uk/income-tax-rates — bands and Personal Allowance.
- gov.uk/national-insurance-rates-letters — NI rates and category letters.
- gov.uk/scottish-income-tax — Scottish bands.
- HMRC monthly newsletters — rate change notifications.
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Frequently asked questions
What are the UK income tax bands for 2025/26?
Personal Allowance £12,570; basic rate 20% up to £50,270; higher rate 40% up to £125,140; additional rate 45% above £125,140. Personal Allowance tapers from £100,000 to £125,140.
What are the Scottish income tax bands?
Six: Starter 19% to £15,397; Basic 20% to £27,491; Intermediate 21% to £43,662; Higher 42% to £75,000; Advanced 45% to £125,140; Top 48% above. Personal Allowance £12,570 still applies UK-wide.
What's the employee NI rate in 2025/26?
8% on earnings £12,571–£50,270, then 2% above £50,270. Class 4 NI for self-employed: 6% / 2% in same bands.
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.
Dividend Tax Calculator
Calculate tax on dividends received from UK companies for 2025/26.
Related reading
The £100k Tax Trap 2025/26: Why Earning More Can Cost You 60%
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UK Bonus Sacrifice into Pension: 60% Tax Trap Escape 2025/26
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HMRC Coding Notice: What to Do When Your Tax Code Changes
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