Complete guide to income tax bands, rates and allowances for the 2025/26 tax year. All thresholds explained with a quick calculator.
Enter your annual salary to instantly see which tax threshold applies and how your income is taxed across each band.
The UK income tax system uses progressive bands. You only pay the higher rate on income above each threshold, not on your entire salary.
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Personal Allowance taper: If your income exceeds £100,000, your personal allowance is reduced by £1 for every £2 of income above £100,000. It reaches £0 at £125,140, creating an effective 60% marginal rate in this range.
National Insurance contributions are separate from income tax but also deducted from your pay. Here are the key NI thresholds for employees and employers.
| Threshold | Annual Amount | Rate |
|---|---|---|
| Lower Earnings Limit (LEL) | £6,396 | 0% |
| Primary Threshold (PT) | £12,570 | 0% |
| PT to Upper Earnings Limit | £12,570 – £50,270 | 8% |
| Above Upper Earnings Limit | Over £50,270 | 2% |
| Threshold | Annual Amount | Rate |
|---|---|---|
| Secondary Threshold | £5,000 | 0% |
| Above Secondary Threshold | Over £5,000 | 15% |
Employment Allowance: Eligible employers can claim up to £10,500 off their employer NI bill for 2025/26.
Beyond income tax and NI, there are numerous thresholds affecting your finances. Here is a comprehensive list of the key figures.
| Allowance | Amount |
|---|---|
| Personal Allowance | £12,570 |
| Marriage Allowance (transferable) | £1,260 |
| Blind Person's Allowance | £3,070 |
| Married Couple's Allowance (born before 6 April 1935) | £11,080 – £4,280 |
| Allowance | Amount |
|---|---|
| Dividend Allowance | £1,000 |
| Savings Allowance (basic rate) | £1,000 |
| Savings Allowance (higher rate) | £500 |
| Capital Gains Tax Annual Exempt Amount | £3,000 |
| ISA Annual Allowance | £20,000 |
| Lifetime ISA Allowance | £4,000 |
| Threshold | Amount |
|---|---|
| Annual Allowance | £60,000 |
| Money Purchase Annual Allowance | £10,000 |
| Tapered AA starts (adjusted income) | £260,000 |
| Minimum Tapered AA | £10,000 |
| Lump Sum Allowance | £268,275 |
| Plan | Annual Threshold | Rate |
|---|---|---|
| Plan 1 (pre-2012) | £24,990 | 9% |
| Plan 2 (post-2012) | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Plan 5 (from 2023) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Most income tax thresholds remain frozen for 2025/26. The main change is to employer National Insurance. Here is a full comparison.
| Threshold | 2024/25 | 2025/26 | Change |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | Frozen |
| Basic Rate Band | £37,700 | £37,700 | Frozen |
| Higher Rate Threshold | £50,271 | £50,271 | Frozen |
| Additional Rate Threshold | £125,141 | £125,141 | Frozen |
| Employee NI Rate (main) | 8% | 8% | No change |
| Employer NI Rate | 13.8% | 15% | +1.2% |
| Employer NI Threshold | £9,100 | £5,000 | ↓ £4,100 |
| Employment Allowance | £5,000 | £10,500 | ↑ £5,500 |
| Dividend Allowance | £500 | £1,000 | ↑ £500 |
| CGT Annual Exempt | £3,000 | £3,000 | Frozen |
| ISA Allowance | £20,000 | £20,000 | Frozen |
Tax Bracket Calculator | Salary Calculator | Tax Calculator | NI Calculator | Pension Calculator | UK Tax Rates
Expert review: James Mitchell, ACCA. Data verified against official UK government sources. Last checked April 2026.