Income Tax Thresholds 2025-26
All UK income tax thresholds and band boundaries for 2025-26. These figures have been frozen since 2021-22 and are set to remain frozen until at least 2027-28.
England, Wales & Northern Ireland — 2025-26 Thresholds
| Threshold | Annual | Monthly | Weekly |
|---|---|---|---|
| Personal Allowance (tax-free) | £12,570 | £1,047.50 | £241.73 |
| Basic Rate starts | £12,571 | £1,047.58 | £241.75 |
| Basic Rate band | £12,571 – £50,270 | £1,048 – £4,189 | £242 – £967 |
| Higher Rate threshold | £50,271 | £4,189.25 | £966.75 |
| PA taper starts (60% zone) | £100,000 | £8,333 | £1,923 |
| PA fully withdrawn | £125,140 | £10,428 | £2,407 |
| Additional Rate threshold | £125,140 | £10,428 | £2,407 |
Scotland — 2025-26 Thresholds
Scotland's Higher Rate threshold is considerably lower than England's — £43,662 vs £50,270. This means Scottish taxpayers with incomes between £43,662 and £50,270 pay 42% income tax while their English counterparts pay 20%.
| Threshold / Band | Annual | Rate |
|---|---|---|
| Personal Allowance | £12,570 | 0% |
| Starter Rate threshold | £12,571 – £15,397 | 19% |
| Basic Rate threshold | £15,398 – £27,491 | 20% |
| Intermediate Rate threshold | £27,492 – £43,662 | 21% |
| Higher Rate threshold (Scotland) | £43,663 – £75,000 | 42% |
| Advanced Rate threshold | £75,001 – £125,140 | 45% |
| Top Rate threshold | Above £125,140 | 48% |
Threshold freeze — fiscal drag explained
All main income tax thresholds have been frozen since April 2021 and are set to remain frozen until April 2028. In a period of wage inflation, this creates fiscal drag — more people are pushed into higher tax bands even though the rates haven't changed.
| If thresholds had risen with inflation (CPI) | Where Personal Allowance would be | Where Higher Rate threshold would be |
|---|---|---|
| 2021-22 baseline | £12,570 | £50,270 |
| Estimated 2025-26 (CPI-indexed) | ~£15,000 | ~£60,000 |
| Actual 2025-26 (frozen) | £12,570 | £50,270 |
The OBR estimates the threshold freeze will create approximately 3 million additional higher-rate taxpayers by 2027-28 compared to if thresholds had been indexed to inflation.
Other key 2025-26 tax thresholds
| Allowance / threshold | 2025-26 amount | Notes |
|---|---|---|
| Dividend Allowance | £500 | Dividends below this: 0% |
| Personal Savings Allowance (Basic Rate) | £1,000 | Interest below this: 0% |
| Personal Savings Allowance (Higher Rate) | £500 | Interest below this: 0% |
| Marriage Allowance | £1,260 | Transfer from non-taxpayer to Basic Rate spouse |
| Annual CGT Exempt Amount | £3,000 | Capital gains below this: 0% |
| ISA annual subscription limit | £20,000 | Stocks & Shares or Cash ISA |
| Annual Pension Allowance | £60,000 | Or 100% of earnings if lower |
| Inheritance Tax nil-rate band | £325,000 | 40% on excess |
Frequently asked questions
What is the income tax threshold for 2025-26?
The Personal Allowance (the threshold below which you pay no income tax) is £12,570 for 2025-26. This has been frozen since 2021-22. The Basic Rate band runs to £50,270, the Higher Rate to £125,140, and the Additional Rate applies above £125,140.
What is the higher rate threshold for 2025-26?
In England, Wales and Northern Ireland, income above £50,270 is taxed at 40% (Higher Rate). In Scotland, the Higher Rate (42%) starts at £43,663 — the lower threshold means Scottish taxpayers pay more on income between £43,663 and £50,270.
When does the Personal Allowance reduce?
The £12,570 Personal Allowance begins to taper once your income exceeds £100,000. It reduces by £1 for every £2 over £100,000 and is fully withdrawn at £125,140 — creating a 60% effective marginal rate on income between those two figures. Pension contributions and gift aid payments can reduce your adjusted income below £100,000.