Income tax rates and bands
Income tax rates and bands for England, Wales and Northern Ireland. The bands are frozen at their 2025/26 levels. Scottish taxpayers pay different rates, see the note below.
Income tax bands
| Band | Taxable income | Tax rate |
|---|---|---|
| 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% |
- The Personal Allowance is reduced by £1 for every £2 of income over £100,000 and is £0 at £125,140 or above.
- The basic rate band is £37,700, so the higher-rate threshold is £50,270 for anyone with the standard Personal Allowance.
- Bands are different if you live in Scotland, see the Scottish rates note below.
Other rates for
| Type of income | Basic rate | Higher rate | Additional rate |
|---|---|---|---|
| Earnings, pensions, rental profit (after any allowance) | 20% | 40% | 45% |
| Dividends (from 6 April 2026) | 10.75% | 35.75% | 39.35% |
| Savings interest | 20% | 40% | 45% |
- Dividend rates rise by 2 percentage points from 6 April 2026, as announced at Autumn Budget 2025. The first £500 of dividends is tax-free (the dividend allowance).
- The starting rate for savings is 0% on up to £5,000 of savings interest, for those with low overall income.
- From April 2027, savings and property income rates are also due to change by 2 percentage points, check current HMRC guidance nearer the time.
Common questions
Are the income tax bands changing?
No. The Personal Allowance, the basic rate band and the higher-rate threshold are frozen at their 2025/26 levels. Under current plans the freeze runs until at least April 2031, so figures are checked against HMRC guidance each year.
Do I pay one rate on all my income?
No. Each band applies only to the income that falls within it. If your income crosses a threshold, only the amount above that threshold is taxed at the higher rate.
What rate applies to dividends?
From 6 April 2026: 10.75% within the basic rate band, 35.75% within the higher rate band and 39.35% above it, with the first £500 tax-free.
Figures from Income Tax rates and Personal Allowances . For guidance only, not tax advice. Always check current HMRC guidance.
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