2025/26 Tax Year — Detailed Band Breakdown
Frequently Asked Questions
Personal allowance: £0-£12,570 (0%). Basic rate: £12,571-£50,270 (20%). Higher rate: £50,271-£125,140 (40%). Additional rate: above £125,140 (45%). These thresholds are frozen until at least 2028.
£12,570, unchanged since 2021/22. It begins to taper for incomes above £100,000, reducing by £1 for every £2 earned above that level, reaching zero at £125,140.
£50,270. This is the sum of the personal allowance (£12,570) plus the basic rate band (£37,700). It remains frozen until April 2028.
45% on income above £125,140. This was reduced from £150,000 in April 2023 as part of fiscal consolidation.
Scotland has five bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top rate (48%). The higher and top rates are significantly higher than the rest of the UK.
Between £100,000 and £125,140, every extra £1 of income costs 40p in income tax plus loses 50p of personal allowance (taxed at 40% = 20p more), giving a 60% effective marginal rate.
Employee NIC is 8% on earnings between £12,570 and £50,270, and 2% above £50,270. Adding NIC to income tax gives an effective combined rate of 28% (basic), 42% (higher), and 47% (additional).
Wales uses the same rates as England (20%/40%/45%) plus the Welsh Rate of Income Tax, which has been set at the same level as the UK rates since introduction.
Pension contributions reduce your adjusted net income. This can keep you within a lower band, reduce personal allowance tapering, and preserve child benefit entitlement.
From April 2028, thresholds are planned to rise with CPI inflation, though this is subject to government policy. Rising thresholds would reduce fiscal drag effects.
Gift Aid donations extend your basic rate band by the grossed-up donation amount. Higher rate taxpayers can claim additional relief on the difference between higher and basic rate on their self-assessment return.
One partner can transfer £1,260 of unused personal allowance to their spouse/civil partner (saving £252 in tax), if the recipient is a basic rate taxpayer.