How UK Income Tax Works

Income tax is a tax charged on your earnings. In the UK, you only pay income tax on income above your personal allowance.

Personal Allowance

For 2025/26, the personal allowance is £12,570. You don't pay income tax on income up to this amount.

Tax Bands for England, Wales & Northern Ireland

• Basic rate (£12,571-£50,270): 20%
• Higher rate (£50,271-£125,140): 40%
• Additional rate (over £125,140): 45%

Scotland Tax Bands

Scotland has different rates: Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Top 47%.