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.