Every UK tax rate in one place. Income tax, NI, corporation tax, CGT, inheritance tax, stamp duty, VAT and dividend tax rates for 2025/26.
Enter your annual income to see your effective tax rate — the real percentage of your income that goes to tax and National Insurance.
Income tax is the largest tax most people pay. The rates below apply to England, Wales and Northern Ireland for the 2025/26 tax year. Scotland has its own rates (see below).
| 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% |
Note: The personal allowance reduces by £1 for every £2 of income over £100,000, reaching £0 at £125,140.
If you live in Scotland, you pay Scottish income tax rates set by the Scottish Parliament. These rates differ from the rest of the UK.
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £14,876 | 19% |
| Basic Rate | £14,877 – £26,561 | 20% |
| Intermediate Rate | £26,562 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
National Insurance contributions fund the state pension and certain benefits. Rates differ for employees, employers and the self-employed.
| Earnings | Rate |
|---|---|
| Up to £12,570 (Primary Threshold) | 0% |
| £12,570 – £50,270 | 8% |
| Over £50,270 | 2% |
| Earnings | Rate |
|---|---|
| Up to £5,000 (Secondary Threshold) | 0% |
| Over £5,000 | 15% |
| Profits | Rate |
|---|---|
| Up to £12,570 (Lower Profits Limit) | 0% |
| £12,570 – £50,270 | 6% |
| Over £50,270 | 2% |
Class 2 NI: Voluntary for self-employed from 2024/25. If you choose to pay, the rate is £3.45 per week.
Corporation tax applies to company profits. Since April 2023, a two-tier system applies based on profit levels.
| Profit Level | Rate |
|---|---|
| Small Profits (£0 – £50,000) | 19% |
| Marginal Relief (£50,001 – £250,000) | 19% – 25% |
| Main Rate (over £250,000) | 25% |
Marginal relief formula: For profits between £50,000 and £250,000, marginal relief reduces the effective rate gradually from 25% down towards 19%. The marginal relief fraction is 3/200.
Capital gains tax applies when you sell assets for a profit. Rates changed from 30 October 2024 following the Autumn Budget.
| Asset Type | Basic Rate Taxpayer | Higher/Additional Rate |
|---|---|---|
| Most assets (shares, funds, etc.) | 18% | 24% |
| Residential property (not main home) | 18% | 24% |
| Business Asset Disposal Relief | 14% (rising to 18% from April 2026) | |
| Investors' Relief | 14% (rising to 18% from April 2026) | |
Annual Exempt Amount: £3,000 per person for 2025/26. Gains below this are tax-free.
Inheritance tax (IHT) is charged on estates above certain thresholds when someone dies.
| Threshold / Rate | Amount |
|---|---|
| Nil-Rate Band (NRB) | £325,000 |
| Residence Nil-Rate Band (RNRB) | £175,000 |
| Combined threshold (individual) | £500,000 |
| Combined threshold (married couple, transferable) | £1,000,000 |
| IHT Rate (above thresholds) | 40% |
| Reduced rate (10%+ left to charity) | 36% |
RNRB taper: The residence nil-rate band reduces for estates worth over £2 million, by £1 for every £2 above £2 million.
Stamp duty is paid when you buy property in England or Northern Ireland. Rates reverted from 1 April 2025 after the temporary thresholds ended.
| Property Price Portion | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
| Property Price Portion | Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
First-time buyers: No SDLT on the first £300,000 of a property up to £500,000 (from 1 April 2025). 5% applies on the portion from £300,001 to £500,000.
Value Added Tax is charged on most goods and services sold in the UK.
| Type | Rate | Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services |
| Reduced Rate | 5% | Home energy, child car seats, sanitary products |
| Zero Rate | 0% | Most food, children's clothes, books, newspapers |
| Exempt | N/A | Insurance, education, health services, financial services |
VAT registration threshold: £90,000 turnover (from 1 April 2024). Businesses below this can register voluntarily.
Dividends are taxed at special rates that are lower than income tax rates. A £1,000 dividend allowance applies before tax is due.
| Tax Band | Dividend Rate |
|---|---|
| Personal Allowance / Dividend Allowance | 0% |
| Basic Rate (up to £50,270) | 8.75% |
| Higher Rate (£50,271 – £125,140) | 33.75% |
| Additional Rate (over £125,140) | 39.35% |
Dividend Allowance: The first £1,000 of dividends is tax-free in 2025/26 (increased from £500 in 2024/25). This allowance uses up your basic or higher rate band.
Student loan repayments are deducted from your salary once you earn above your plan's threshold. These are not technically a tax, but they reduce your take-home pay.
| Plan | Annual Threshold | Rate |
|---|---|---|
| Plan 1 (pre-September 2012) | £24,990 | 9% |
| Plan 2 (post-September 2012) | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Plan 5 (from September 2023) | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Note: Repayments are 9% (or 6%) of income above the threshold, not on total earnings. Plan 2 loans are written off after 30 years; Plan 5 after 40 years.
Tax Bracket Calculator | Salary Calculator | Tax Calculator | NI Calculator | CGT Calculator | Tax Thresholds 2025/26
Expert review: James Mitchell, ACCA. Data verified against official UK government sources. Last checked April 2026.