Income Tax Rates 2025–26
The 2025–26 tax year runs from 6 April 2025 to 5 April 2026. Income tax rates and thresholds are unchanged from 2024–25 — the personal allowance and all rate band thresholds remain frozen under the government's freeze policy, which runs through to at least April 2028.
2025–26 at a glance
- ›Personal allowance: £12,570 (unchanged, frozen through 2028)
- ›Basic rate: 20% on income £12,571–£50,270
- ›Higher rate: 40% on income £50,271–£125,140
- ›Additional rate: 45% on income above £125,140
- ›PA taper: reduces £1 per £2 of income above £100,000, reaching zero at £125,140
- ›Employer NI increased from 13.8% to 15% (April 2025), secondary threshold reduced to £5,000
England / Wales / Northern Ireland
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Scotland
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | £0 – £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% |
Calculate your income tax for 2025-26
Income tax 2025-26 — what you need to know
For income tax specifically, there are no changes between 2024–25 and 2025–26. The threshold freeze means that as wages rise, more taxpayers are pulled into higher tax bands — a phenomenon known as fiscal drag.
Personal allowance and taper
The personal allowance of £12,570 is the amount of income you receive free of income tax. It applies to most taxpayers in England, Wales, Northern Ireland, and Scotland. The allowance tapers for high earners: above £100,000 it reduces by £1 for every £2 of income, reaching zero at £125,140. This creates an effective 60% marginal rate on income in the £100,000–£125,140 range.
Threshold freeze and fiscal drag
The decision to freeze income tax thresholds through to April 2028 means that as wages rise with inflation, a growing share of income is subject to tax. Each year, some taxpayers cross the basic rate threshold for the first time, and some higher-rate taxpayers see more of their income taxed at 40%. This “fiscal drag” generates additional tax revenue without any formal change to rates.
Scottish income tax
Scotland has separate income tax rates and bands, set annually by the Scottish Parliament. Scottish taxpayers pay a 19% starter rate on income just above the personal allowance, rising through basic (20%), intermediate (21%), higher (42%), advanced (45%), and top (48%) rates. The personal allowance and taper rules are UK-wide and apply equally to Scottish taxpayers.
Frequently asked questions
What are the income tax rates for 2025-26?
For England, Wales, and Northern Ireland: 0% personal allowance up to £12,570; 20% basic rate £12,571–£50,270; 40% higher rate £50,271–£125,140; 45% additional rate above £125,140. Scottish taxpayers pay different rates set by the Scottish Parliament, including a 19% starter rate and rates up to 48%.
Have income tax thresholds changed from 2024-25 to 2025-26?
No — all income tax thresholds are unchanged. The personal allowance (£12,570), basic rate threshold (£50,270), and additional rate threshold (£125,140) are all frozen at the same levels as 2024–25. The freeze was announced in the 2021 Autumn Budget and extended through to at least April 2028.
What changed between 2024-25 and 2025-26?
Income tax rates and thresholds are unchanged. The significant change for 2025–26 is to National Insurance: employee NI dropped from 10% to 8% on earnings between the primary threshold (£12,570) and upper earnings limit (£50,270). Employer NI increased from 13.8% to 15%, and the secondary threshold was cut from £9,100 to £5,000 per year.
What is the 60% tax trap in 2025-26?
The effective marginal rate on income between £100,000 and £125,140 is 60% — comprising the 40% income tax rate plus a further 20% arising from the loss of the personal allowance (which reduces by £1 for every £2 of income above £100,000). Pension contributions or Gift Aid can reduce adjusted net income and recover the personal allowance.
How much is the 2025-26 personal allowance?
The standard personal allowance for 2025–26 is £12,570. This is the amount of income you can receive before paying income tax. For income above £100,000, the allowance tapers at £1 per £2, reaching zero at £125,140. The allowance has been frozen at £12,570 since the 2021–22 tax year.
Related calculators
This calculator provides estimates only. Rates are based on published HMRC figures for 2025-26. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.