UK Tax Brackets 2025-26: Every Income Tax Band for England, Scotland, and Wales
The UK tax system uses a progressive structure where higher slices of income are taxed at higher rates. For 2025-26, England, Wales, and Northern Ireland share the same Income Tax bands, while Scotland sets its own rates with six bands instead of three. This page is a complete reference for every Income Tax band, National Insurance threshold, and key allowance for the current tax year.
England, Wales, and Northern Ireland: Income Tax bands
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Personal Allowance, Basic rate limit, and Higher rate threshold have all been frozen since 2021-22 and will remain frozen until at least April 2028. This is sometimes called "fiscal drag" or "stealth tax": as wages rise with inflation, more people are pulled into higher tax brackets without any change to the rates themselves. HMRC estimates that the freeze will bring around 4 million additional taxpayers into the Higher rate band by the end of the freeze period compared to what would have happened with inflation-linked increases.
Scotland: Income Tax bands
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £15,397 | 19% |
| Basic rate | £15,398 to £27,491 | 20% |
| Intermediate rate | £27,492 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Scotland introduced its own Income Tax rates in April 2017. The current six-band system has been in place since 2018-19, with rates adjusted annually by the Scottish Government. The Starter rate of 19% means low earners in Scotland pay slightly less tax than in England, but the Higher rate of 42% (vs 40% in England) and the Advanced rate of 45% (which England does not have below £125,140) mean higher earners pay more. Compare England vs Scotland at £50,000.
National Insurance thresholds 2025-26
NI applies UK-wide at the same rates regardless of where you live. The key employee thresholds:
| Threshold | Annual | Weekly | Monthly |
|---|---|---|---|
| Lower Earnings Limit | £6,396 | £123 | £533 |
| Primary Threshold | £12,570 | £242 | £1,048 |
| Upper Earnings Limit | £50,270 | £967 | £4,189 |
Employee NI: 8% between the Primary Threshold and Upper Earnings Limit, 2% above the UEL.
Employer NI: 15% on earnings above £5,000/year (changed from 13.8% above £9,100 in April 2025).
The Personal Allowance and its taper
Everyone gets a tax-free Personal Allowance of £12,570. For every £2 of income above £100,000, the allowance is reduced by £1. It reaches zero at £125,140. This creates an effective 60% marginal tax rate in the taper zone (see our detailed guide to the 60% tax trap).
The Personal Allowance is set by Westminster and applies across the entire UK, including Scotland. The Scottish Parliament cannot change it.
Dividend and savings rates
Dividend income has its own set of rates, applied after the £500 Dividend Allowance:
| Band | Dividend Rate |
|---|---|
| Basic rate | 8.75% |
| Higher rate | 33.75% |
| Additional rate | 39.35% |
Savings income benefits from the Personal Savings Allowance: £1,000 for basic rate taxpayers, £500 for higher rate taxpayers, and £0 for additional rate taxpayers. The first £5,000 of savings income above the Personal Allowance is also subject to the 0% Starting Rate for Savings, but only if your non-savings income is below £17,570. See our savings interest calculator.
What "frozen thresholds" actually costs you
The threshold freeze has a real and measurable impact on take-home pay. Consider someone who earned £45,000 in 2021-22 and has received pay rises matching CPI inflation each year. By 2025-26, their salary has risen to approximately £53,000, but the tax thresholds have not moved:
- In 2021-22 at £45,000: all income fell within the basic rate band (20% IT + 12% NI).
- In 2025-26 at £53,000: £2,730 of income now falls into the higher rate band (40% IT + 2% NI), and the NI rate has changed.
The tax increase from threshold freezing on this individual is approximately £1,800 per year, even though their purchasing power has not increased in real terms. Across the economy, the Office for Budget Responsibility estimates the freeze raises approximately £7 billion per year by 2027-28.
Calculate take-home pay for a £53,000 salary.
Worked examples at key salary levels
£25,000 (median part-time, common starter salary)
Income Tax: (£25,000 - £12,570) x 20% = £2,486. NI: (£25,000 - £12,570) x 8% = £994.40. Take-home: £21,519.60 (£1,793/month).
£35,000 (UK median full-time salary)
Income Tax: (£35,000 - £12,570) x 20% = £4,486. NI: (£35,000 - £12,570) x 8% = £1,794.40. Take-home: £28,719.60 (£2,393/month).
£50,000 (approaching higher rate)
All taxable income still within the basic rate band. IT: £7,486. NI: £2,994.40. Take-home: £39,519.60 (£3,293/month).
£75,000 (well into higher rate)
IT: £7,540 (basic) + £9,892 (higher on £50,271-£75,000) = £17,432. NI: £3,510.60. Take-home: £54,057.40 (£4,505/month).
£100,000 (just before the PA taper)
IT: £7,540 + £19,892 = £27,432. NI: £4,010.60. Take-home: £68,557.40 (£5,713/month). One pound more and the Personal Allowance begins to erode.
Key allowances summary for 2025-26
| Allowance | Amount |
|---|---|
| Personal Allowance | £12,570 |
| Marriage Allowance (transferable) | £1,260 |
| Blind Person's Allowance | £3,070 |
| Trading Allowance | £1,000 |
| Property Allowance | £1,000 |
| Dividend Allowance | £500 |
| Personal Savings Allowance (basic rate) | £1,000 |
| Personal Savings Allowance (higher rate) | £500 |
| Capital Gains Tax Annual Exempt Amount | £3,000 |
| ISA Annual Subscription Limit | £20,000 |
| Pension Annual Allowance | £60,000 |
Frequently asked questions
When will tax thresholds be unfrozen?
The current freeze on the Personal Allowance and basic rate limit is confirmed until April 2028. Whether thresholds will resume inflation-linked increases after that date depends on the fiscal position and political decisions at the time. No government has made a commitment to unfreeze them beyond 2028.
Do I pay Welsh Income Tax at different rates?
Wales has had the power to set its own Income Tax rates since April 2019 (identified by a C prefix tax code, e.g. C1257L). However, the Welsh Government has chosen to keep rates identical to England for every year since devolution. A Welsh taxpayer currently pays exactly the same Income Tax as an English taxpayer. This could change in future budgets, but there is no current proposal to diverge.
How do I know which tax bracket I am in?
Your tax bracket is determined by your total taxable income (all income sources minus the Personal Allowance and any other deductions). If your taxable income is £40,000, you are a basic rate taxpayer. If it is £55,000, you are a higher rate taxpayer on the portion above £50,270. You can check your estimated bracket through your Personal Tax Account on GOV.UK, or use our calculator for your exact salary.
Does Capital Gains Tax use the same brackets?
Capital gains are taxed at separate rates, but the rate depends on your Income Tax band. For 2025-26, basic rate taxpayers pay 18% CGT on gains (24% on residential property). Higher and additional rate taxpayers pay 24% (24% on property). The Annual Exempt Amount is £3,000. See our CGT calculator for worked examples.
I earn under £12,570. Do I need to do anything?
If your only income is from employment and it is below the Personal Allowance of £12,570, you pay no Income Tax and no National Insurance. You do not need to file a Self Assessment return. Your employer should apply the 1257L tax code, resulting in zero tax deductions. If tax is being deducted despite earning under £12,570, contact HMRC to correct your tax code, or claim a refund after the tax year ends. See the breakdown for a £12,000 salary.
What is the marriage allowance and who qualifies?
The Marriage Allowance lets a non-taxpayer (income under £12,570) transfer £1,260 of their Personal Allowance to their spouse or civil partner, provided the recipient is a basic rate taxpayer (income under £50,270). The tax saving is £1,260 x 20% = £252 per year. If you are eligible but have not claimed, you can backdate the claim for up to four years. See our marriage allowance calculator.