Marriage Allowance — £40,000 Salary 2025-26
Transfer £1,260 personal allowance · Save up to £252 tax · Basic rate taxpayers only
Before and after Marriage Allowance — £40,000 salary
| Item | Without MA | With MA | Difference |
|---|---|---|---|
| Gross salary | £40,000 | £40,000 | — |
| Personal Allowance | £12,570 | £13,830 | +£1,260 |
| Income Tax | −£5,486 | −£5,234 | +£252 |
| National Insurance | −£2,194 | −£2,194 | — |
| Net take-home | £32,320 | £32,572 | +£252 |
How Marriage Allowance works
Transfers £1,260 of their Personal Allowance. Their PA reduces from £12,570 to £11,310. They must have income at or below £12,570 to benefit (otherwise they would pay extra tax on the transferred amount).
Receives the £1,260 transfer. Their PA increases from £12,570 to £13,830. On a £40,000 salary, this saves £252/year at the 20% basic rate.
Monthly take-home comparison — £40,000
Marriage Allowance on a £40,000 salary in 2025-26
If your partner earns below the Personal Allowance (£12,570) and you earn £40,000, you could be eligible for Marriage Allowance. Your partner transfers £1,260 of their unused Personal Allowance to you, increasing your tax-free amount from £12,570 to £13,830. This reduces your Income Tax by £252 in 2025-26.
The maximum saving from Marriage Allowance is £252 per year (£1,260 at 20%). On a £40,000 salary the saving is £252 — equivalent to £21 per month. National Insurance is not affected by Marriage Allowance.
You apply through GOV.UK (gov.uk/apply-marriage-allowance). Once approved, HMRC adjusts both partners' tax codes. You can also backdate a claim for up to 4 years, potentially receiving a lump-sum refund.
Frequently asked questions
How much does Marriage Allowance save on a £40,000 salary?
On a £40,000 salary in 2025-26, Marriage Allowance saves £252 in Income Tax per year (approximately £21/month). The recipient's personal allowance rises from £12,570 to £13,830, reducing taxable income by £1,260 at the 20% basic rate.
Who can claim Marriage Allowance?
You can claim Marriage Allowance if you are married or in a civil partnership, one partner has income at or below the Personal Allowance (£12,570), and the other partner is a basic rate taxpayer (income £12,571–£50,270). Higher and additional rate taxpayers are not eligible to receive the allowance.
What is the take-home pay on £40,000 with Marriage Allowance?
With Marriage Allowance, take-home pay on a £40,000 salary is £32,572/year (£2,714/month), compared to £32,320/year without. Income Tax falls from £5,486 to £5,234, a saving of £252.
How do you apply for Marriage Allowance?
You apply for Marriage Allowance via the GOV.UK website at gov.uk/apply-marriage-allowance. The lower-earning partner makes the application. HMRC will adjust both partners' tax codes — the recipient gets a new tax code (e.g. 1383M) and the transferor gets a reduced code (e.g. 1197N). You can backdate claims up to 4 tax years.
Is the Marriage Allowance saving always exactly £252?
The maximum saving is £252 (£1,260 × 20%). On a £40,000 salary the actual saving is £252. The saving can be lower if the recipient's income is at or below the personal allowance threshold, or if part of the transferred allowance falls in a nil-rate band.
Does Marriage Allowance affect National Insurance?
No. Marriage Allowance only affects Income Tax. National Insurance is calculated on earnings regardless of personal allowance adjustments. The £252 saving shown is purely an Income Tax reduction.
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