UK Tax Rates · Reference
UK Tax Rates 2025/26: The Complete Guide
Every UK tax rate, allowance and threshold for the 2025/26 tax year. Income tax, National Insurance, VAT, capital gains, dividend tax, inheritance tax, ISA limits and statutory pay rates — all in one place, updated for the year running 6 April 2025 to 5 April 2026.
Last verified against HMRC data: 24 May 2026
Personal Allowance
The standard personal allowance is £12,570 for 2025/26. This is the amount you can earn before paying any income tax. It applies UK-wide (including Scotland, despite Scotland setting its own income tax rates).
Above £100,000, the personal allowance reduces by £1 for every £2 of income, reaching zero at £125,140. This creates a 60% effective marginal tax rate in the band between £100,000 and £125,140 — one of the highest effective rates in the UK tax system.
Income Tax — England, Wales & Northern Ireland
UK income tax (excluding Scotland) has three bands above the personal allowance:
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Above £125,140 | 45% |
Try our Income Tax Calculator to work out your exact bill, or the Take-Home Pay Calculator for your net salary after all deductions.
Scottish Income Tax
Scotland sets its own income tax rates and bands for non-savings, non-dividend income. Scottish taxpayers pay six different rates, ranging from 19% to 48%:
| Band | Taxable income | 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 – £137,710 | 45% |
| Top | Above £137,710 | 48% |
National Insurance
Employee Class 1 NI is 8% on annual earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
Employer NI is 15%, with the secondary threshold at £5,000.
Self-employed Class 2 NI is abolished. Class 4 remains at 6% on profits between £12,570 and £50,270, and 2% above that.
Student Loan Repayment Thresholds
| 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 | £21,000 | 6% |
Stamp Duty / Land Transaction Tax
Property transaction tax depends on where you buy:
- England & Northern Ireland — SDLT, starting at 2% above £125,000 (0% for first-time buyers up to £300,000).
- Scotland — LBTT, starting at 2% above £145,000 (first-time buyers 0% to £175,000). Additional Dwelling Supplement is 8%.
- Wales — LTT, starting at 6% above £225,000. No first-time buyer relief in Wales.
Use our Stamp Duty Calculator for all three regimes.
VAT
UK VAT rates remain at 20% standard, 5%reduced (domestic energy, children's car seats), and 0% zero-rated (most food, books, children's clothes). The VAT registration threshold is £90,000 annual turnover.
Dividend Tax
The dividend allowance is £500. Above the allowance, dividends are taxed at 8.75% (basic), 33.75% (higher) and 39.35% (additional rate).
Capital Gains Tax
CGT annual exempt amount is £3,000 for individuals. Gains on most assets are taxed at 18% (basic rate taxpayer) or 24% (higher rate), the same rates that apply to residential property. Business Asset Disposal Relief rate is 14.00%.
Inheritance Tax
Nil-rate band remains at £325,000. Residence nil-rate band is £175,000 when passing a main residence to direct descendants. IHT is charged at 40% above thresholds, or 36% if 10%+ of the net estate is left to charity.
ISA Allowances
- Total ISA allowance: £20,000
- Lifetime ISA: £4,000 (counts toward £20,000 total; 25% government bonus)
- Junior ISA: £9,000
Pension Allowances
Annual allowance is £60,000, tapered down for high earners (income above £260,000) to a minimum of £10,000. The Lifetime Allowance was abolished in April 2024 and replaced by:
- Lump Sum Allowance (LSA): £268,275
- Lump Sum and Death Benefit Allowance (LSDBA): £1,073,100
Minimum Wage (from 1 April 2025)
| Rate | Per hour |
|---|---|
| National Living Wage (21+) | £12.21 |
| Development rate (18–20) | £10.00 |
| Young workers (16–17) | £7.55 |
| Apprentice rate | £7.55 |
Statutory Pay Rates
- Statutory Sick Pay (SSP): £118.75 per week
- Statutory Maternity/Paternity/Adoption Pay: £187.18 per week (or 90% of average weekly earnings, whichever is lower)
- SSP duration: up to 28 weeks
- SMP: 39 weeks paid, 52 weeks total leave
State Pension
New State Pension (post-2016): £230.25 per week (£11,973 per year), increased by 4.1% under the triple lock. Basic State Pension (pre-2016): £176.45 per week. State Pension age is 66 (rising to 67 between 2026 and 2028).