UK Income Tax Bands & Rates 2025-26
Full breakdown of income tax bands for England, Scotland and Wales for the 2025-26 tax year (6 April 2025 to 5 April 2026).
England, Wales & Northern Ireland — Income Tax Bands 2025-26
These bands apply to the majority of UK taxpayers outside Scotland.
| 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 | Above £125,140 | 45% |
Scotland — Income Tax Bands 2025-26
Scotland has its own income tax rates set by the Scottish Parliament. Scottish taxpayers pay different rates to those in the rest of the UK on non-savings, non-dividend income.
| 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 | Above £125,140 | 48% |
Note: Scotland's Higher rate starts at £43,663 — nearly £7,000 lower than the £50,270 threshold in England. A Scottish taxpayer on £50,000 pays significantly more income tax than an equivalent English taxpayer.
Wales — Income Tax Bands 2025-26
Wales has devolved income tax-varying powers but the Welsh Government has set rates equal to England's for 2025-26. Welsh taxpayers pay the same rates as those in England.
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Welsh Basic rate | £12,571 to £50,270 | 20% |
| Welsh Higher rate | £50,271 to £125,140 | 40% |
| Welsh Additional rate | Above £125,140 | 45% |
Worked Examples
Example 1: Salary of £30,000 (Basic Rate taxpayer)
On a £30,000 salary in England:
- Personal Allowance: £12,570 — taxed at 0% = £0
- Taxable income: £30,000 − £12,570 = £17,430 — all in the Basic rate band
- Income tax: £17,430 × 20% = £3,486
See the full breakdown: £30,000 after tax
Example 2: Salary of £60,000 (Higher Rate taxpayer)
On a £60,000 salary in England:
- Personal Allowance: £12,570 — taxed at 0% = £0
- Basic rate band: £12,571 to £50,270 = £37,700 × 20% = £7,540
- Higher rate band: £50,271 to £60,000 = £9,730 × 40% = £3,892
- Total income tax: £11,432
See the full breakdown: £60,000 after tax
Example 3: Salary of £100,000 (Personal Allowance taper begins)
On a £100,000 salary in England:
- Personal Allowance: £12,570 (not yet reduced — taper starts at £100,000)
- Basic rate band: £37,700 × 20% = £7,540
- Higher rate band: £100,000 − £50,270 = £49,730 × 40% = £19,892
- Total income tax: £27,432
See the full breakdown: £100,000 after tax
Personal Allowance Taper Above £100,000
Your Personal Allowance (the amount you earn before paying any income tax) is normally £12,570. However, it reduces if your adjusted net income exceeds £100,000.
- For every £2 you earn above £100,000, you lose £1 of your Personal Allowance.
- At £125,140 the Personal Allowance is entirely withdrawn.
- This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140.
The effective 60% rate arises because each additional £1 earned between £100,000 and £125,140 is taxed at 40% Higher rate, plus the loss of 50p of allowance (which would have been taxed at 40%) generates an additional 20p of tax — totalling 60p tax on each £1.
Making pension contributions is one of the most effective ways to reduce income below £100,000 and recover the Personal Allowance. See pension tax relief calculator.
Frequently Asked Questions
What are the UK income tax bands for 2025-26?
In England, Wales and Northern Ireland: 0% on the first £12,570 (Personal Allowance), 20% Basic rate on £12,571–£50,270, 40% Higher rate on £50,271–£125,140, and 45% Additional rate above £125,140.
What is the higher rate tax threshold in 2025-26?
The Higher rate threshold is £50,270 for England, Wales and Northern Ireland. In Scotland it is £43,663 — meaning Scottish taxpayers earning above that figure pay 42% (rather than 40%) on income in that range.
Does the Personal Allowance reduce at high incomes?
Yes. Above £100,000 your Personal Allowance reduces by £1 for every £2 earned. It reaches zero at £125,140. Between these two figures the effective marginal tax rate is 60% — one of the highest effective rates in the UK tax system.