What are the current Income Tax Rates?
Income tax rates show the percentage of your income you will pay as tax.
Tax rates gradually increase depending on which tax band your income falls into. If your income covers more than one tax band you will pay income tax at different rates.
To determine your correct tax band, you must first identify your personal allowance rate using the table below.
You then deduct this amount from your salary (or other income source) to work out your total taxable income.
The income tax rate is applied after any tax free allowances have been taken into account and is not applicable on any non taxable income.
Income tax rates
The current income tax bands and rates for England, Wales & Northern Ireland are:
Personal allowance: £0 to £12,570 @ 0% tax rate.
Basic rate: £12,571 to £50,270 @ 20% tax rate.
Higher rate: £50,271 to £125,140 @ 40% tax rate.
Additional rate: Over £125,140 @ 45% tax rate.
Scottish income tax rates 2024/2025
From 2017/18 tax year, the Scottish Parliament will decide the income tax rates in Scotland. If you live in Scotland you will pay income tax as set out by the Scottish Parliament and will pay tax to the Scottish Government.
Personal allowance: £0 to £12,570 @ 0% tax rate.
Starter rate: £12,571 to £14,876 @ 19% tax rate.
Basic rate: £14,877 to £26,561 @ 20% tax rate.
Intermediate rate: £26,562 to £43,662 @ 21% tax rate.
Higher rate: £43,663 to £75,000 @ 42% tax rate.
Advanced rate: £75,001 to £125,140 @ 45% tax rate.
Top rate: £125,141 and above @ 48% tax rate.
Income tax rates example
Our basic example below shows how income tax rates are applied for a basic rate taxpayer:
Tax year: 2024/2025
Your earnings: £33,000
Your personal allowance: £12,570
Deduct your personal allowance from total earnings: £33,000 – £12,570 = £23,560 (taxable income).
You pay 20% basic rate tax on the taxable income of £23,560 = £4712.00.
Why are tax rates important?
Knowing what tax bracket your income falls into lets you know how much tax you will be paying.
This is an important figure when working out your take home pay and calculating personal budgets.
Always bear in mind that if you start earning more it’s possible you could start paying tax at a higher rate meaning that you will pay more tax.
In a similar way if you start earning less or there is an increase in your personal tax free allowance you can start paying less.
Our income tax calculator is a useful tool to help you calculate how much will be deducted from your income.
Income tax rates and your tax code
If you are employed under PAYE you will be given a tax code which is directly linked to the rates of tax that are applicable to you.
A tax code is calculated using a variety of factors including your taxable income, tax free allowances and rates of tax.
It’s a good idea to check your tax code each tax year (or if you have a change in income) to make sure the amount of income tax deducted from your salary is correct.
Personal allowance rate
The personal allowance is also known as the tax free personal allowance and is available to the majority of UK residents.
This allowance effectively lowers the amount of taxable income upon which you’re required to pay income tax.
For many individuals the personal allowance means you can earn up to £12,570 without having to pay income tax.
Basic rate tax
In England, Wales and Northern Ireland income tax is payable at the basic rate of 20 per cent on taxable income up to £50,270.
Higher rate tax
If you live in England, Wales or Northern Ireland and you have taxable income of more than £50,001, you will have to pay the higher rate of 40 per cent tax on the amount above £50,001 up to £125,140.
Additional rate tax
If you have taxable income of more than £125,140 you will have to pay the additional rate of 45 per cent on the amount above this level.
Personal savings allowance
From 6 April 2018 most individuals can earn some income from personal savings without paying income tax.
This is called the personal savings allowance and there’s an additional starter savings rate available for lower earners.
- Non taxpayer: You qualify for the starter savings rate of £5000.
- If you’re a basic rate taxpayer with taxable earnings of over £17570 you can earn up to £1,000 in savings tax free.
- For those with an income ranging from £12571 to £17570 you are entitled to the starter savings rate of £5000.00 and additional personal savings allowance of £1000.
- Higher rate taxpayers will be able to earn up to £500.
- Additional rate taxpayers are not eligible for the personal savings allowance.
Income tax rates for previous tax years
Tax Year 2023/2024
Taxable income (England, Wales & Northern Ireland):
Personal allowance: £0 to £12,570 @ 0% tax rate.
Basic rate: £12,571 to £50,270 @ 20% tax rate.
Higher rate: £50,271 to £150,000 @ 40% tax rate.
Additional rate: Over £150,000 @ 45% tax rate.
Scotland:
Personal allowance: £0 to £12,570 @ 0% tax rate.
Starter rate: £12,571 to £14,732 @ 19% tax rate.
Basic rate: £14,733 to £25,688 @ 20% tax rate.
Intermediate rate: £25,689 to £43,662 @ 21% tax rate.
Higher rate: £43,663 to £125,140 @ 42% tax rate.
Additional rate: Over £125,140 @ 47% tax rate.
Tax year 2022/2023
Taxable income (England, Wales & Northern Ireland):
Personal allowance: £0 to £12,500 @ 0% tax rate.
Basic rate: £12,571 to £50,270 @ 20% tax rate.
Higher rate: £50,271 to £150,000 @ 40% tax rate.
Additional rate: Over £150,000 @ 45% tax rate.
Scotland:
Personal allowance: £0 to £12,570 @ 0% tax rate.
Starter rate: £12,571 to £14,732 @ 19% tax rate.
Basic rate: £14,733 to £25,688 @ 20% tax rate.
Intermediate rate: £25,689 to £43,662 @ 21% tax rate.
Higher rate: £43,663 to £125,140 @ 42% tax rate.
Additional rate: Over £125,140 @ 47% tax rate.
Tax rates and tax rebates
Your tax free personal allowance and the rate at which you pay tax is only part of your tax position.
It’s a real possibility that you could be overpaying income tax for a host of different reasons.
You can use our free income tax guides and tax refund calculators to learn more about UK income tax and tax refunds.
