UK Tax Brackets 2025 – Complete Guide to Income Tax Rates
For the tax year running from 6 April 2025 to 5 April 2026, the UK’s income tax brackets remain largely frozen. Most taxpayers in England, Wales and Northern Ireland will pay the same rates as the previous year, while Scotland continues with its own separate band structure. Understanding these thresholds is essential for anyone planning their finances, especially as frozen bands mean more people may be pulled into higher rates through wage growth alone.
The standard personal allowance stays at £12,570, and the basic, higher and additional rates apply at the same income levels as 2024/25. The only notable shift is that the additional rate threshold – already reduced in earlier years – remains at £125,140. For Scottish taxpayers, the bands are set independently and range from 19% to 48%.
What Are the UK Tax Brackets for 2025/26?
Up to £12,570
0% rate
£12,571 – £50,270
20% rate
£50,271 – £125,140
40% rate
Over £125,140
45% rate
- The personal allowance has been frozen at £12,570 and is set to remain at that level until at least 2028.
- The higher rate threshold is also frozen at £50,270, meaning more people are drawn into the 40% band as wages rise – a phenomenon known as fiscal drag.
- The additional rate threshold was reduced from £150,000 to £125,140 in 2023/24 and stays at that level for 2025/26.
- Dividend and savings tax rates are unchanged from 2024/25.
- Scottish taxpayers face a distinct set of bands, with a top rate of 48% on income over £125,140.
| 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% |
| Personal Allowance taper | Income above £100,000 | £1 reduction for every £2 over £100,000 until zero at £125,140 |
| Scottish rates (separate) | See Scottish bands | 19% to 48% depending on band |
What Is the Personal Tax Allowance for 2025/26?
The personal allowance is the amount you can earn before any income tax is due. For 2025/26 it remains at £12,570, according to HMRC. This applies to most UK residents, although those with adjusted net income above £100,000 will see it reduced.
The taper is straightforward: for every £2 of income above £100,000, the allowance is cut by £1. Once income reaches £125,140 or more, the personal allowance drops to zero. This means that people earning between £100,000 and £125,140 face an effective marginal rate that can exceed 60% because they lose the allowance while also paying higher-rate tax.
Someone with adjusted net income of £112,570 is £12,570 over the taper threshold. Their personal allowance is reduced by £12,570 ÷ 2 = £6,285, leaving them with only £6,285 of tax-free income. The remaining £6,285 is taxed at 40%, effectively increasing the tax burden.
The starting rate for savings – a separate allowance for interest income – is 0% on up to £5,000 of savings income, but this rate is reduced if you have other income above the personal allowance. It is unchanged from 2024/25.
How Do the 2025/26 Tax Bands Compare to 2024/25?
The core UK-wide structure is identical to the previous tax year. The personal allowance, basic rate band, higher rate band, and additional rate threshold have all been frozen. HMRC’s income tax page confirms the same figures for both years. No tax bands were increased or reduced between 2024/25 and 2025/26.
The freeze, first announced in the Spring Budget 2021, is now scheduled to last until April 2028. As a result, fiscal drag continues to push more income into higher brackets. The Office for Budget Responsibility has projected that millions of additional taxpayers will move into the higher rate band by the end of the freeze period.
Scotland’s income tax bands for 2025/26 are set separately by the Scottish Parliament. The threshold structure and rates are the same as those used in 2024/25, though the exact 2024/25 Scottish table is not reproduced in the main HMRC source. The bands range from the Starter rate (19% up to £2,827) to the Top rate (48% over £125,140).
What Are the Tax Brackets for Self-Employed Individuals in 2025/26?
Self-employed people do not pay income tax via PAYE but are still liable for income tax on their taxable profits. The same UK tax bands and rates apply: 0% on profits up to £12,570, 20% on profits between £12,571 and £50,270, 40% on profits between £50,271 and £125,140, and 45% on profits over £125,140.
In addition, the self-employed must pay Class 2 and Class 4 National Insurance contributions. These are separate from income tax and have their own thresholds. HMRC’s guidance on rates and thresholds for employers includes the relevant NI figures, but they are not covered by the standard income tax brackets.
Self-employed individuals should factor in both income tax and National Insurance when estimating their total tax bill. The income tax bands alone do not tell the full story. HMRC’s tax tools can help calculate the combined liability.
What Is the Official UK Government Source for 2025/26 Tax Rates?
The definitive source is HMRC’s income tax rates page on gov.uk. It lists the personal allowance, basic, higher, and additional rate bands for the current tax year. The page is updated for each new tax year and includes the taper rules for high earners.
The UK Parliament’s House of Commons Library also publishes a research briefing on direct taxes, which provides the same figures alongside historical context. For professional summaries, PwC’s individual tax summary covers UK rates, including savings and dividend rates, though it is not an official government source.
For future years, the Wesleyan financial advice page projects that 2026/27 rates are expected to remain frozen, but this is subject to government policy changes that may be announced in the Autumn Budget.
“Income Tax rates and bands for 2025/26 are: Personal Allowance: Up to £12,570 (0%), Basic rate: £12,571 to £50,270 (20%), Higher rate: £50,271 to £125,140 (40%), Additional rate: Over £125,140 (45%).”
– HM Revenue & Customs (gov.uk/income-tax-rates)
“For 2025/26 these three rates are 20%, 40% and 45% respectively. No tax is charged on income up to the personal allowance, which is set at £12,570.”
– UK Parliament, House of Commons Library (research briefing CBP-10237)
“Income threshold 2025/26 (GBP): Personal allowance: 0 to 12,570 (0%), Starting rate for savings: 12,571 to 50,270 (20%).”
– PwC Tax Summaries (taxsummaries.pwc.com)
What Changes Have Affected UK Tax Thresholds Recently?
- – The additional rate threshold is reduced from £150,000 to £125,140 for 2023/24.
- – Spring Budget confirms that thresholds will remain frozen until 2028.
- – 2024/25 tax year begins with the same frozen bands.
- – 2025/26 tax year starts. No further rate changes are introduced.
- – 2026/27 tax year expected to continue the freeze, pending any policy announcements.
What Is Certain and Uncertain About 2025/26 Tax Rates?
| Established information | Information that remains unclear |
|---|---|
| Personal allowance is £12,570 for 2025/26. | Future tax rates beyond 2026/27 depend on government decisions. |
| Basic rate: 20% on income £12,571–£50,270. | Scottish tax rates may change annually; set by the Scottish Parliament. |
| Higher rate: 40% on income £50,271–£125,140. | The impact of fiscal drag could prompt future policy adjustments. |
| Additional rate: 45% on income over £125,140. | – |
| Thresholds are frozen until at least 2028. | – |
Why Do These Tax Rates Matter?
The freeze on income tax thresholds, combined with rising wages, pushes more people into higher tax brackets without any official rate increase. This fiscal drag effectively raises the tax burden for millions. The reduction of the additional rate threshold from £150,000 to £125,140, although not a change from last year, already brought thousands more high earners into the 45% band. Understanding the exact brackets is essential for personal financial planning, especially for those near the £50,270 higher rate threshold or the £100,000 taper point.
What Should Taxpayers Know About 2025/26 Tax Brackets?
Taxpayers should monitor the Autumn Budget for any changes to future tax years. For 2026/27, rates are expected to remain frozen, but policy could shift. Self-employed individuals should also check for changes to National Insurance contributions. Using a tax calculator can help estimate your liability for 2025/26. For more on financial planning, see our guide on Travel Insurance with Medical Conditions – UK Guide for 2025. Employers should also understand their duties under the Health and Safety at Work Act – Duties Employers Must Know.
Frequently Asked Questions
What are the UK income tax rates for 2026/27?
As of now, the rates for 2026/27 are expected to remain the same as 2025/26, but this is subject to change pending the Autumn Budget.
What is the starting rate for savings in 2025/26?
The starting rate for savings is 0% on up to £5,000 of savings income, but this rate is reduced if you have other income above the personal allowance.
What is the higher rate tax threshold for 2025/26?
The higher rate tax threshold is £50,271 to £125,140, taxed at 40% for England, Wales and Northern Ireland.
What is the additional rate tax threshold for 2025/26?
The additional rate applies to taxable income over £125,140 at a rate of 45%.
What are the Scottish income tax bands for 2025/26?
Scottish bands are: Starter (up to £2,827, 19%), Basic (£2,828–£14,921, 20%), Intermediate (£14,922–£31,092, 21%), Higher (£31,093–£62,430, 42%), Advanced (£62,431–£125,140, 45%), and Top (over £125,140, 48%).
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