UK income tax for 2025/26 and 2026/27 is charged at three main rates. These apply to England, Wales and Northern Ireland. Scotland has different rates and bands.
Personal allowance: £0 to £12,570 — 0% tax Basic rate: £12,571 to £50,270 — 20% tax Higher rate: £50,271 to £125,140 — 40% tax Additional rate: Over £125,140 — 45% tax
The personal allowance is reduced by £1 for every £2 earned above £100,000, creating the effective 60% rate. By £125,140, it is completely gone.
Here is how the bands work in practice. On a £45,000 salary, you pay 0% on the first £12,570, then 20% on the remaining £32,430, giving total income tax of £6,486.
On a £75,000 salary, you pay 0% on £12,570, 20% on £37,700 (the basic rate band width), and 40% on £24,730. Total tax: £17,432.
On a £150,000 salary, you pay 0% on nothing (personal allowance is gone at this level), 20% on £37,700, 40% on £87,440, and 45% on £24,860. Total tax: £52,703.
All thresholds have been frozen since 2021 and will remain frozen until at least 2028. This means more people are pushed into higher tax bands each year as wages rise. An estimated 4 million more people now pay higher rate tax compared to 2021 due to this freeze.
Scotland has different income tax rates with six bands: starter rate (19%), Scottish basic rate (20%), intermediate rate (21%), higher rate (42%), advanced rate (45%), and top rate (48%).
Use our take-home pay calculator to see your exact tax at any salary level.