UK tax rates and thresholds 2025/26
Checked against HMRC on 2026-08-29 by Hadi.
Everything used to work out take-home pay in the 2025/26 tax year, which runs 2025-04-06 to 2026-04-05. These rates no longer apply, see 2026/27.
- Personal allowance
- £12,570
- Taper starts
- £100,000
- Allowance gone at
- £125,140
- Standard tax code
- 1257L
2025/26 rates at a glance
Income tax in England, Wales and Northern Ireland is 20% up to £50,270, 40% to £125,140 and 45% above, after a £12,570 personal allowance; Scotland uses six bands from 19% to 48%. Employee National Insurance is 8% between £12,570 and £50,270, then 2%. Dividends above the £500 allowance are taxed at 10.75%, 35.75% and 39.35%. Full tables below.
Income tax, England & Northern Ireland
| Band | Taxable income | Salary (standard allowance) | Rate |
|---|---|---|---|
| Personal allowance | — | Up to £12,570 | 0% |
| Basic rate | £0 – £37,700 | £12,570 – £50,270 | 20% |
| Higher rate | £37,700 – £125,140 | £50,270 – £137,710 | 40% |
| Additional rate | £125,140 – above | £137,710 – above | 45% |
Income tax, Scotland
| Band | Taxable income | Salary (standard allowance) | Rate |
|---|---|---|---|
| Personal allowance | — | Up to £12,570 | 0% |
| Starter rate | £0 – £2,827 | £12,570 – £15,397 | 19% |
| Basic rate | £2,827 – £14,921 | £15,397 – £27,491 | 20% |
| Intermediate rate | £14,921 – £31,092 | £27,491 – £43,662 | 21% |
| Higher rate | £31,092 – £62,430 | £43,662 – £75,000 | 42% |
| Advanced rate | £62,430 – £125,140 | £75,000 – £137,710 | 45% |
| Top rate | £125,140 – above | £137,710 – above | 48% |
Scottish rates apply to earnings, pensions and property income, but not to savings or dividends, which stay on UK-wide rates. National Insurance is not devolved either, which is why a Scottish salary between about £43,663 and £50,270 is taxed at 42% while also paying 8% National Insurance, exactly half of each extra pound.
Income tax, Wales
| Band | Taxable income | Salary (standard allowance) | Rate |
|---|---|---|---|
| Personal allowance | — | Up to £12,570 | 0% |
| Basic rate | £0 – £37,700 | £12,570 – £50,270 | 20% |
| Higher rate | £37,700 – £125,140 | £50,270 – £137,710 | 40% |
| Additional rate | £125,140 – above | £137,710 – above | 45% |
Welsh Rates of Income Tax are set at 10p in each band for 2025/26, which leaves Welsh taxpayers on exactly the same rates as England and Northern Ireland.
The personal allowance taper
Above £100,000 the allowance is withdrawn at £1 for every £2 of income, reaching zero at £125,140. Because each extra pound is taxed and simultaneously drags 50p of previously tax-free income into tax, the effective marginal rate in that window is far above the headline rate.
| Salary | Allowance | England marginal | Scotland marginal |
|---|---|---|---|
| £20,000 | £12,570 | 28% | 28% |
| £40,000 | £12,570 | 28% | 29% |
| £60,000 | £12,570 | 42% | 44% |
| £110,000 | £7,570 | 62% | 69% |
| £150,000 | £0 | 47% | 50% |
National Insurance (employee, Class 1)
| Earnings | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Above £50,270 | 2% |
National Insurance is worked out per pay period rather than cumulatively, unlike income tax. A salary paid evenly and the same amount paid partly as a bonus produce different totals.
Student loan repayment thresholds
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £26,065 | 9% |
| Plan 2 | £28,470 | 9% |
| Plan 4 (Scotland)For students who took out loans through the Student Awards Agency Scotland. | £32,745 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Frequently asked questions
What is the personal allowance for 2025/26?
£12,570. It has been frozen at this level since April 2021, and it is withdrawn at £1 for every £2 of income above £100,000, reaching zero at £125,140.
When does the 40% tax rate start in 2025/26?
At £50,270 of income in England, Wales and Northern Ireland. In Scotland there is no single 40% point: the 42% advanced rate starts at a different threshold, shown in the Scottish table above.
How much National Insurance do employees pay in 2025/26?
Nothing up to £12,570, 8% from there to £50,270, and 2% above that. The rate is the same across the whole UK, and it falls as income rises — the opposite shape to income tax.
Are Scottish tax rates different?
Yes: Scotland sets six income tax bands from 19% to 48% rather than three. National Insurance and student loan thresholds are not devolved, so those are identical everywhere.
Sources: HMRC rates and thresholds for employers 2025/26 and gov.scot. Checked by Hadi on 2026-08-29. If anything here disagrees with HMRC, HMRC is right, please tell me.