Official Income Tax Bands & National Insurance Rates
✓ Current for 2025/26 Tax YearAnnounced November 2025 | In effect for 2025/26 tax year
Next Update: Spring Budget 2026 (expected March) will announce rates for 2026/27 tax year.
| Band | Taxable Income | Tax 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% |
See exactly what you'll pay in income tax and National Insurance based on your salary:
Income Tax: £3,486
National Insurance: £2,003
Take-home: £24,511
Income Tax: £7,486
National Insurance: £4,803
Take-home: £37,711
Income Tax: £27,486
National Insurance: £8,803
Take-home: £63,711
National Insurance (NI) is a tax paid by employees and employers on earnings, and by the self-employed on their profits.
| Annual Earnings | NI Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571 - £50,270 | 8% |
| Over £50,270 | 2% |
| Type | Threshold / Rate |
|---|---|
| Class 2 (flat rate) | £3.45 per week (if profits over £12,570) |
| Class 4 (£12,571 - £50,270) | 6% |
| Class 4 (over £50,270) | 2% |
Employers pay 13.8% National Insurance on employee earnings above £9,100 per year.
| 6 April 2025 | Current tax year started |
| 5 October 2025 | Deadline to register for self-assessment (new taxpayers) |
| 31 October 2025 | Paper tax return deadline (2024/25 tax year) |
| 31 January 2026 | Online tax return deadline (2024/25 tax year) |
| 31 January 2026 | Payment deadline for 2024/25 tax bill |
| March 2026 | Spring Budget 2026 (announces 2026/27 rates) |
| 5 April 2026 | End of 2025/26 tax year |
| 31 July 2026 | Second payment on account deadline |
Take advantage of these tax-free allowances to reduce your tax bill legally:
£20,000
Tax-free savings and investments per year
£60,000
Annual pension contribution limit with tax relief
£3,000
Tax-free gains per year (reduced from £6,000)
£500
Tax-free dividend income (reduced from £1,000)
£1,000
Tax-free self-employment / property income
£1,260
Transfer unused allowance to spouse
£12,570. This is the amount you can earn tax-free each year. This has been frozen since 2021 and will remain frozen until at least April 2028, meaning more people pay tax due to wage inflation (fiscal drag).
When your taxable income exceeds £50,270 per year. This threshold has also been frozen, meaning wage rises push more people into the higher rate band.
Yes. Both are deducted from your salary if you earn over £12,570. National Insurance is charged at 8% on earnings between £12,571-£50,270, then 2% above that.
£11,486 income tax + £5,603 National Insurance = £17,089 total deductions. Your take-home pay would be £42,911 per year (£3,576/month).
Yes. Scotland has its own income tax bands with 6 rates ranging from 19% (starter rate) to 48% (top rate). National Insurance rates are the same across the UK.
If you earn between £100,000-£125,140, you lose £1 of personal allowance for every £2 earned. This creates an effective tax rate of 60% on this income band.
The UK tax year runs from 6 April to 5 April the following year. The current 2025/26 tax year runs from 6 April 2025 to 5 April 2026.
Yes, if their total income (including state pension, private pensions, and any other income) exceeds the personal allowance of £12,570. However, pensioners don't pay National Insurance.
Pay As You Earn (PAYE) is the system employers use to deduct income tax and National Insurance from your salary before you receive it. Most employees pay tax through PAYE.
Use ISAs (£20K tax-free), maximize pension contributions (up to £60K with tax relief), claim all eligible expenses if self-employed, transfer marriage allowance, and donate to charity via Gift Aid.
Main changes: Capital Gains Tax allowance reduced to £3,000 (from £6,000), Dividend allowance cut to £500 (from £1,000), and confirmation that personal allowance and tax bands remain frozen until April 2028.
The Spring Budget 2026 (expected March) will announce any changes for the 2026/27 tax year starting 6 April 2026. However, the government has confirmed thresholds will remain frozen until 2028.