What is the Personal Allowance? 2025-26 Guide
The Personal Allowance is the most important number in UK tax — the amount you earn completely free of income tax. Here is everything you need to know for 2025-26.
The Standard Personal Allowance: £12,570
For the 2025-26 tax year (6 April 2025 to 5 April 2026), the standard Personal Allowance is £12,570. This translates to:
- £1,047.50 per month tax-free
- £241.73 per week tax-free
- Tax code 1257L on your payslip (the number is the allowance ÷ 10)
The Personal Allowance has been frozen at £12,570 since the 2021-22 tax year. The government originally announced this freeze would last until 2025-26, and has since extended it to at least 2027-28. In practice, the freeze creates "fiscal drag" — as wages rise with inflation, more people cross into higher rate tax without any explicit tax rate increase.
Since 2022, the National Insurance Primary Threshold has also been set at £12,570, aligning both thresholds. This means you start paying both income tax and NI at the same earnings point.
The £100,000 Taper: When Your Allowance Shrinks
The Personal Allowance is not guaranteed for higher earners. If your adjusted net income exceeds £100,000, your allowance is reduced by £1 for every £2 earned above £100,000. This creates an increasingly nasty situation the closer you get to £125,140.
At £125,140 (exactly £100,000 + 2 × £12,570), the Personal Allowance reaches zero and you pay income tax on every pound of your salary. The taper creates an effective 60% marginal tax rate in the £100,000–£125,140 zone. See our guide to the 60% tax trap for a full explanation.
| Salary | Personal Allowance | Effective Marginal Rate | Note |
|---|---|---|---|
| £99,000 | £12,570 (full) | 40% | Taper not triggered |
| £110,000 | £7,570 | 60% | £5,000 allowance lost |
| £120,000 | £2,570 | 60% | £10,000 allowance lost |
| £125,140 | £0 | 45% | No allowance remaining |
| £150,000 | £0 | 45% | Full additional rate applies |
How to Protect Your Allowance Above £100,000
If your income sits between £100,000 and £125,140, there are legitimate ways to reduce your adjusted net income and preserve your Personal Allowance:
- Pension contributions: Contributions to a registered pension reduce your adjusted net income pound for pound. Contributing £10,000 to a pension when earning £110,000 brings your adjusted income down to £100,000 — restoring the full £12,570 allowance and saving £5,000 × 20% = £1,000 in reclaimed allowance plus the direct pension tax relief.
- Gift Aid donations: Charitable donations under Gift Aid also reduce adjusted net income.
- Salary sacrifice: Pension salary sacrifice, cycle-to-work schemes, and EV car schemes can all reduce gross pay before HMRC's income calculation.
Marriage Allowance: Transfer £1,260
If you are married or in a civil partnership and one partner earns below the Personal Allowance, they can transfer up to £1,260 of their unused allowance to their spouse. The recipient must be a basic-rate taxpayer (earning between £12,571 and £50,270 in England/Wales/NI).
The transfer saves the recipient £252 per year (£1,260 × 20%). The claim goes back up to four years, so you could claim up to £1,008 in total if you have not claimed before. Apply at gov.uk/marriage-allowance or through your self-assessment return.
Blind Person's Allowance
If you are registered as blind (severely sight impaired), you can claim an additional tax-free allowance of £3,070 for 2025-26, on top of the standard £12,570. This brings your total tax-free income to £15,640. If you cannot use the full amount, any surplus can be transferred to your spouse or civil partner.
Personal Allowance: Full Summary Table
| Scenario | Tax-Free Amount | Notes |
|---|---|---|
| Standard allowance | £12,570 | Most employees — tax code 1257L |
| Marriage Allowance recipient | £13,830 | +£1,260 transferred from spouse |
| Blind Person's Allowance | £15,640 | £12,570 + £3,070 BPA |
| Earning £110,000 | £7,570 | Taper reduces standard allowance |
| Earning £125,140+ | £0 | Allowance completely withdrawn |
Frequently Asked Questions
What is the Personal Allowance for 2025-26?
The Personal Allowance for 2025-26 is £12,570. It has been frozen at this level since 2021-22 and is set to remain frozen until at least 2027-28.
What happens to the Personal Allowance if I earn over £100,000?
Above £100,000 your allowance reduces by £1 for every £2 earned. At £125,140 it reaches zero. This creates a 60% effective marginal tax rate in that income band — one of the most punishing zones in UK tax.
Can I transfer my Personal Allowance to my spouse?
Yes — via Marriage Allowance, you can transfer £1,260 to a basic-rate taxpaying spouse or civil partner, saving up to £252 per year. Claims can be backdated up to four years.