Quick Tax Threshold Calculator
Enter your annual salary to instantly see which tax threshold applies and how your income is taxed across each band.
Income Tax Thresholds 2025/26 Current Year
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 Thresholds 2025/26
National Insurance contributions are separate from income tax but also deducted from your pay. Here are the key NI thresholds for employees and employers.
Employee NI (Class 1)
| 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% |
Employer NI (Class 1)
| 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.
Other Tax Allowances & Thresholds 2025/26
Beyond income tax and NI, there are numerous thresholds affecting your finances. Here is a comprehensive list of the key figures.
Personal & Marriage Allowances
| 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 |
Savings, Dividends & Capital Gains
| 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 |
Pensions
| 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 |
Student Loan Repayment Thresholds
| 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% |
Tax Threshold Changes: 2024/25 vs 2025/26
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 |
Related Calculators
Tax Bracket Calculator | Salary Calculator | Tax Calculator | NI Calculator | Pension Calculator | UK Tax Rates
Frequently Asked Questions
Official Sources
- GOV.UK — Income Tax Rates and Allowances
- GOV.UK — National Insurance
- GOV.UK — Rates and Allowances: Income Tax
Expert review: Mustafa Bilgic. Data verified against official UK government sources. Last checked April 2026.