Income Tax UK: Tax Codes, Allowances, PAYE, Scottish Rates and ReliefsUK Tax Brackets 2025/26 Quick Reference
Current UK income tax bands and rates. Personal allowances, tax thresholds, and how much you'll pay at each level — updated for 2025/26.
A quick reference to UK income tax bands and rates for the 2025/26 tax year.
England, Wales & Northern Ireland
Tax Bands 2025/26
| Band | Taxable Income | Tax Rate |
|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Tax-Free Personal Allowance
| Situation | Allowance |
|---|
| Standard | £12,570 |
| Blind Person’s | +£3,070 |
| Marriage Allowance | Transfer up to £1,260 |
| Over £100k income | Reduced |
Scotland
Scottish Tax Bands 2025/26
| Band | Taxable Income | Tax Rate |
|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Starter Rate | £12,571 - £14,876 | 19% |
| Basic Rate | £14,877 - £26,561 | 20% |
| Intermediate Rate | £26,562 - £43,662 | 21% |
| Higher Rate | £43,663 - £75,000 | 42% |
| Advanced Rate | £75,001 - £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Personal Allowance Reduction
Over £100,000 Income
| Your Income | Personal Allowance |
|---|
| £100,000 | £12,570 |
| £110,000 | £7,570 |
| £120,000 | £2,570 |
| £125,140+ | £0 |
How It Works
| Calculator | |
|---|
| Income over £100k | £ |
| Divide by 2 | = reduction |
| Max reduction | £12,570 |
The 60% Trap
| Income Range | Effective Rate |
|---|
| £100,000 - £125,140 | ~60% |
| Why? | 40% tax + lost allowance |
| Avoid | Pension contributions |
Quick Tax Calculations
Tax on Different Salaries
| Salary | Tax Paid | Effective Rate |
|---|
| £20,000 | £1,486 | 7.4% |
| £30,000 | £3,486 | 11.6% |
| £40,000 | £5,486 | 13.7% |
| £50,000 | £7,486 | 15.0% |
| £60,000 | £11,486 | 19.1% |
| £70,000 | £15,486 | 22.1% |
| £80,000 | £19,486 | 24.4% |
| £100,000 | £27,486 | 27.5% |
Note: Tax only, excludes National Insurance
Understanding Marginal Rate
| Concept | Explanation |
|---|
| Marginal rate | Tax on next £1 earned |
| Not average | Only on that portion |
| If earning £55,000 | Marginal rate is 40% |
| But average | Much lower |
Dividend Tax
Dividend Rates 2025/26
| Band | Rate |
|---|
| Dividend Allowance | £500 tax-free |
| Basic Rate | 8.75% |
| Higher Rate | 33.75% |
| Additional Rate | 39.35% |
Which Band?
| Your Total Income | Dividend Rate |
|---|
| Under £50,270 | 8.75% |
| £50,271 - £125,140 | 33.75% |
| Over £125,140 | 39.35% |
Capital Gains Tax
CGT Rates 2025/26
| Asset | Basic Rate | Higher Rate |
|---|
| Residential Property | 18% | 24% |
| Other Assets | 10% | 20% |
Annual Exempt Amount
| Year | Exemption |
|---|
| 2025/26 | £3,000 |
| Previously | Higher |
| Now | Significantly reduced |
Savings Tax
Personal Savings Allowance
| Tax Band | PSA |
|---|
| Basic Rate | £1,000 |
| Higher Rate | £500 |
| Additional Rate | £0 |
Starting Rate for Savings
| Condition | Rate |
|---|
| Non-savings income under £17,570 | 0% up to £5,000 |
| On savings interest | |
Tax-Free Allowances Summary
| Allowance | Amount 2025/26 |
|---|
| Personal Allowance | £12,570 |
| Personal Savings Allowance | £1,000/£500 |
| Dividend Allowance | £500 |
| Capital Gains Allowance | £3,000 |
| ISA Allowance | £20,000 |
Key Dates
| Date | Action |
|---|
| 6 April | Tax year starts |
| 5 April | Tax year ends |
| 31 January | Self Assessment deadline |
| 31 July | Payment on account due |
Summary
| Key Threshold | Amount |
|---|
| Tax-free earnings | £12,570 |
| Basic rate ends | £50,270 |
| Higher rate ends | £125,140 |
| Personal Allowance lost | £125,140 |
| Quick Lookup | 2025/26 |
|---|
| Personal Allowance | £12,570 |
| Basic Rate | 20% |
| Higher Rate | 40% |
| Additional Rate | 45% |
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