Published 1 January 2025 · 5 min read

UK Income Tax Rates 2025/26 — Bands, Thresholds & Allowances

Understanding your income tax obligations is essential for financial planning. The 2025/26 tax year runs from 6 April 2025 to 5 April 2026. Here is a complete breakdown of the tax bands, personal allowance, and National Insurance thresholds that apply across the UK.

Personal Allowance

The Personal Allowance for 2025/26 remains at £12,570. This is the amount of income you can earn before you start paying income tax. The allowance begins to taper for individuals earning above £100,000 — it reduces by £1 for every £2 earned over that threshold, disappearing entirely at £125,140.

Income tax bands (England, Wales & Northern Ireland)

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%

Scottish income tax bands 2025/26

Scotland sets its own income tax rates, which differ from the rest of the UK. The Scottish bands for 2025/26 are:

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 (NICs)

For employees in 2025/26, Class 1 NICs are charged at 8% on earnings between £12,570 and £50,270 (the primary threshold to the upper earnings limit), and 2% on earnings above £50,270. Employers pay 15% on earnings above the secondary threshold of £5,000.

Self-employed individuals pay Class 4 NICs at 6% on profits between £12,570 and £50,270, and 2% above that.

Key thresholds at a glance

• Personal Allowance: £12,570
• Basic rate band: £12,571 – £50,270 at 20%
• Higher rate band: £50,271 – £125,140 at 40%
• Additional rate: over £125,140 at 45%
• Personal Allowance taper: starts at £100,000
• NI primary threshold: £12,570

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