Current Year (2025/26)
| 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% |
Source: GOV.UK[1]
Recent History
| Year | Personal Allowance | Basic Rate Band | Higher Rate Threshold | Additional Rate Threshold |
|---|---|---|---|---|
| 2025/26 | £12,570 | £37,700 | £50,270 | £125,140 |
| 2024/25 | £12,570 | £37,700 | £50,270 | £125,140 |
| 2023/24 | £12,570 | £37,700 | £50,270 | £125,140 |
| 2022/23 | £12,570 | £37,700 | £50,270 | £150,000 |
| 2021/22 | £12,570 | £37,700 | £50,270 | £150,000 |
| 2020/21 | £12,500 | £37,500 | £50,000 | £150,000 |
Source: GOV.UK[2]
Personal Allowance Taper
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above that level. It reaches zero at £125,140 (2025/26). This creates an effective 60% tax rate on income between £100,000 and £125,140.[1]
Scottish Income Tax Rates (2025/26)
Scotland sets its own rates for non-savings, non-dividend income:[3]
| Band | Taxable Income | Rate |
|---|---|---|
| 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% |
Frozen Thresholds
The Personal Allowance and basic rate band have been frozen since 2021/22 and are expected to remain frozen until at least 2027/28. This means more people are pulled into higher tax bands as wages rise (“fiscal drag”).[2]
Frequently Asked Questions
What are the UK Income Tax rates for 2025/26?
The basic rate is 20% on income from £12,571 to £50,270, the higher rate is 40% on income from £50,271 to £125,140, and the additional rate is 45% on income over £125,140. The Personal Allowance is £12,570.
What is the 60% tax trap?
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above that level, reaching zero at £125,140. This creates an effective 60% tax rate on income between £100,000 and £125,140.
Are Income Tax thresholds frozen?
Yes. The Personal Allowance and basic rate band have been frozen since 2021/22 and are expected to remain frozen until at least 2027/28. This means more people are pulled into higher tax bands as wages rise, known as fiscal drag.
Does Scotland have different Income Tax rates?
Yes. Scotland sets its own rates for non-savings, non-dividend income. For 2025/26, Scotland has six bands ranging from a 19% starter rate to a 48% top rate, with different thresholds from the rest of the UK.
Further Reading
- Personal Allowance & Tax Bands
- NI Rates & Thresholds History
- Dividend Income & Tax Rates
- Savings Income & Tax
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Sources
- Income Tax rates and Personal Allowances — GOV.UK
- Rates and allowances: Income Tax — GOV.UK
- Scottish Income Tax — GOV.UK