How Much Tax Do You Pay in the UK? (2025-26)
Most UK employees pay 20% Income Tax on earnings above £12,570, plus 8% National Insurance up to £50,270 and 2% beyond. The Higher Rate of 40% kicks in above £50,270 in England. Below is the full picture for common salary levels.
UK Tax Breakdown by Salary 2025-26 (England)
All figures are annual. Personal Allowance is £12,570 and falls to £0 between £100,000 and £125,140.
| Gross salary | Personal allowance | Income tax | National Insurance | Total deductions | Take-home pay | Effective rate |
|---|---|---|---|---|---|---|
| £15,000 | £12,570 | £486 | £194 | £680 | £14,320 | 4.5% |
| £20,000 | £12,570 | £1,486 | £594 | £2,080 | £17,920 | 10.4% |
| £25,000 | £12,570 | £2,486 | £994 | £3,480 | £21,520 | 13.9% |
| £30,000 | £12,570 | £3,486 | £1,394 | £4,880 | £25,120 | 16.3% |
| £35,000 | £12,570 | £4,486 | £1,794 | £6,280 | £28,720 | 17.9% |
| £40,000 | £12,570 | £5,486 | £2,194 | £7,680 | £32,320 | 19.2% |
| £45,000 | £12,570 | £6,486 | £2,594 | £9,080 | £35,920 | 20.2% |
| £50,000 | £12,570 | £7,486 | £2,994 | £10,480 | £39,520 | 21.0% |
| £55,000 | £12,570 | £9,432 | £3,088 | £12,520 | £42,480 | 22.8% |
| £60,000 | £12,570 | £11,432 | £3,188 | £14,620 | £45,380 | 24.4% |
| £75,000 | £12,570 | £17,432 | £3,488 | £20,920 | £54,080 | 27.9% |
| £100,000 | £12,570 | £27,432 | £3,988 | £31,420 | £68,580 | 31.4% |
| £125,000 | £0 | £43,957 | £4,488 | £48,445 | £76,555 | 38.8% |
| £150,000 | £0 | £55,207 | £4,988 | £60,195 | £89,805 | 40.1% |
Figures use England 2025-26 rates. No pension, student loan, or other deductions applied. For a personalised result, use the full calculator.
The Tax Bands (England & Wales) 2025-26
Income Tax is charged in bands, not as a flat rate on your whole salary. Each band applies only to the portion of income that falls within it.
| Band | Taxable income | Rate | What it means |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | Tax-free. Tapers above £100,000. |
| Basic Rate | £12,571 to £50,270 | 20% | Most employees pay only this band. |
| Higher Rate | £50,271 to £125,140 | 40% | Applies to earnings above £50,270. |
| Additional Rate | Above £125,140 | 45% | No Personal Allowance at this level. |
National Insurance follows separate thresholds: employees pay 8% on earnings between £12,570 and £50,270, then 2% on the excess. NI stops when you reach State Pension age.
Scotland Pays Different Rates
Scottish taxpayers pay Income Tax under a six-band system set by the Scottish Parliament. The key differences from England: the Higher Rate starts at £43,663 (not £50,270) at 42%, an Advanced Rate of 45% applies from £75,001, and the Top Rate is 48% above £125,140. National Insurance rates are the same across the UK.
See Scotland take-home pay tables or use the England vs Scotland salary comparison.
The 60% tax trap: £100,000 to £125,140
In this income range your Personal Allowance shrinks by £1 for every £2 earned. Combined with the 40% Higher Rate, the marginal rate on each extra pound is effectively 60%. Pension contributions that bring your income below £100,000 remove this trap entirely.
Frequently Asked Questions
Do I pay tax on all my income?
No. The Personal Allowance of £12,570 is tax-free for most people. Income Tax and National Insurance only apply to earnings above that figure. At £20,000, for example, only £7,430 is subject to Income Tax, so your actual tax bill is £1,486, not 20% of £20,000.
What is the 60% tax trap?
Between £100,000 and £125,140 your Personal Allowance tapers to zero at a rate of £1 for every £2 earned. The practical effect: that band is taxed at 40% (Higher Rate) plus an extra 20% lost through the shrinking allowance, producing a 60% marginal rate. Making pension contributions to keep your income below £100,000 is the most straightforward fix. Use the pension calculator to see the saving.
How do I reduce my tax bill?
Four approaches work for most employees:
- Pension contributions reduce your taxable income directly. Basic-rate relief is automatic; higher-rate relief is claimed via Self Assessment.
- Salary sacrifice schemes (cycle-to-work, electric car, childcare) let you exchange gross pay for benefits, cutting your NI bill too.
- Marriage Allowance transfers up to £1,260 of unused Personal Allowance between partners, saving up to £252 per year.
- Checking your tax code is correct. A wrong code is one of the most common causes of overpaying.
When do I start paying the Higher Rate?
In England, Wales and Northern Ireland the Higher Rate of 40% applies to taxable income above £50,270. Because the Personal Allowance covers the first £12,570, you reach the Higher Rate when your gross salary hits £50,270 per year. In Scotland the equivalent point is £43,663, where the 42% Higher Rate begins.
Does National Insurance count as tax?
It is a separate charge, but it comes out of your pay at source alongside Income Tax under PAYE. Employees pay 8% on earnings between £12,570 and £50,270, then 2% above that. At a salary of £35,000 the combined Income Tax and NI bill is around £6,280, an effective rate of just under 18% of gross pay. See the full breakdown in the table above.