The UK uses a progressive tax system — you only pay a higher rate on the portion of income that falls within that band, not on your entire salary. For 2025/26, the personal allowance is £12,570. This means your first £12,570 of income is completely tax-free.
Income between £12,570 and £50,270 is taxed at the Basic Rate of 20%. Between £50,270 and £125,140, the Higher Rate of 40% applies. Any income above £125,140 is taxed at the Additional Rate of 45%.
On top of income tax, most employees also pay National Insurance (NI). For 2025/26 this is 8% on earnings between £12,570 and £50,270, and 2% on anything above that.
UK Income Tax Bands 2025/26 — England, Wales & N. Ireland
Band
Income Range
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%
Frequently Asked Questions
Numra uses verified 2025/26 HMRC tax bands. Results are accurate estimates for most employees but don't cover every personal circumstance, tax credit or allowance. Always consult a qualified accountant for formal tax advice or for complex situations like multiple income sources.
The standard personal allowance for 2025/26 is £12,570 — meaning you pay no income tax on the first £12,570 of earnings. If your income is above £100,000, your allowance tapers by £1 for every £2 earned above that threshold, reaching zero at £125,140.
Yes. Scotland operates six income tax bands compared to three in the rest of the UK, with rates ranging from 19% (Starter Rate) to 48% (Top Rate) for 2025/26. Select 'Scotland' in the region dropdown to see Scottish-specific calculations.
Pension contributions (workplace salary sacrifice or personal pension) reduce your adjusted net income before tax is calculated. This lowers your taxable income, potentially moving you into a lower band or restoring your personal allowance if your income is between £100,000 and £125,140.
Your effective rate is your total income tax as a percentage of your gross income — what you actually pay overall. Your marginal rate is the tax rate on your last pound of earnings. Knowing both helps you understand the real cost of a pay rise or extra freelance income.