UK Tax Brackets 2025-26
The definitive reference for UK tax rates in 2025-26 (6 April 2025 – 5 April 2026): Income Tax bands (England/Wales/NI and Scotland), National Insurance thresholds, Dividend rates, Savings rates, Capital Gains Tax, Personal Allowance taper and the Additional Rate. Sourced from HMRC, verified against the Finance Act 2025.
On this page
England, Wales & Northern Ireland — 2025-26
These rates apply to employment income, self-employment profits, rental income, and savings interest above the savings allowance. National Insurance is separate — see the NI rates page.
| Band | Rate | Taxable income | Tax on band |
|---|---|---|---|
| Personal Allowance | 0% | £0 – £12,570 | £0 |
| Basic Rate | 20% | £12,571 – £50,270 | Up to £7,540 |
| Higher Rate | 40% | £50,271 – £125,140 | Up to £29,948 |
| Additional Rate | 45% | Above £125,140 | 45% on excess |
Scotland — 2025-26 (6 bands)
Scotland has had devolved income tax since 2017-18. Scottish taxpayers pay different rates on non-savings, non-dividend income. The Personal Allowance (£12,570) is the same as the rest of the UK.
| Band | Rate | Taxable income | vs England |
|---|---|---|---|
| Personal Allowance | 0% | £0 – £12,570 | Same |
| Starter Rate | 19% | £12,571 – £15,397 | −1% vs England |
| Basic Rate | 20% | £15,398 – £27,491 | Same |
| Intermediate Rate | 21% | £27,492 – £43,662 | +1% vs England |
| Higher Rate | 42% | £43,663 – £75,000 | +2% vs England |
| Advanced Rate | 45% | £75,001 – £125,140 | +5% vs England |
| Top Rate | 48% | Above £125,140 | +3% vs England |
Scottish taxpayers also pay the same National Insurance as the rest of the UK. Use our England vs Scotland comparison to see the exact difference for your salary.
Worked examples — how brackets apply
Tax brackets apply progressively — you only pay the higher rate on income above each threshold, not on your entire income.
| Personal Allowance (0%) | £0 |
| Basic Rate 20% × £22,430 | £4,486 |
| Total income tax | £4,486 |
| Effective rate | 12.8% |
| Personal Allowance (0%) | £0 |
| Basic Rate 20% × £37,700 | £7,540 |
| Higher Rate 40% × £9,730 | £3,892 |
| Total income tax | £11,432 |
| Effective rate | 19.1% |
| Personal Allowance (0%) | £0 |
| Basic Rate 20% × £37,700 | £7,540 |
| Higher Rate 40% × £49,730 | £19,892 |
| Total income tax | £27,432 |
| Effective rate | 27.4% |
These figures show income tax only. Use our salary calculator for a full breakdown including National Insurance.
Understanding UK income tax brackets
The UK uses a progressive tax system — you only pay each rate on the slice of income that falls within that band. Moving into a higher tax bracket does not mean your entire income is taxed at the higher rate. Only the income above the threshold is subject to the higher rate.
For example, a £55,000 salary in 2025-26 (England) is taxed as follows: the first £12,570 is tax-free (Personal Allowance), the next £37,700 (up to £50,270) is taxed at 20%, and only the remaining £4,730 above £50,270 is taxed at the 40% Higher Rate.
Personal Allowance and the £100,000 trap
The Personal Allowance is reduced by £1 for every £2 of income above £100,000. This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140 — higher than the 45% Additional Rate. This is sometimes called the "60% tax trap." One common strategy to escape it is making pension contributions that bring adjusted income below £100,000.
Dividend and savings income
Dividends have their own rates: 8.75% (Basic Rate band), 33.75% (Higher Rate band), and 39.35% (Additional Rate). The first £500 of dividends in 2025-26 is tax-free (Dividend Allowance). Savings interest benefits from a Personal Savings Allowance of £1,000 (Basic Rate) or £500 (Higher Rate) before tax applies.
Frequently asked questions
What are the UK income tax brackets for 2025-26?
Personal Allowance (0%): £0–£12,570. Basic Rate (20%): £12,571–£50,270. Higher Rate (40%): £50,271–£125,140. Additional Rate (45%): above £125,140. Scotland has different rates — see the Scotland table above.
What tax bracket am I in?
Your "tax bracket" is the highest band your income reaches, but only the income in that band is taxed at that rate. Under £12,570: no income tax. £12,571–£50,270: Basic Rate (20%). £50,271–£125,140: Higher Rate (40%). Above £125,140: Additional Rate (45%). Use our salary calculator to find your exact tax.
Are tax brackets different in Scotland?
Yes. Scotland has 6 income tax bands with different rates and thresholds — see the Scotland table above. Scottish taxpayers generally pay more income tax on earnings above £43,662 compared to England. They pay the same National Insurance rates as the rest of the UK.
When do the 2025-26 tax brackets apply?
The 2025-26 tax year runs from 6 April 2025 to 5 April 2026. Your payslip from April 2025 onwards will use these rates. The brackets for 2026-27 will be announced in the Autumn Budget.