Income Tax Rates and Bands for 2025/26
Income tax in the UK is charged at different rates depending on how much you earn. Understanding these bands is essential for personal tax planning and knowing roughly how much tax you'll owe.
**The personal allowance**
For the 2025/26 tax year, the personal allowance — the amount you can earn before paying any income tax — remains at £12,570. This applies across England, Wales, and Scotland. However, if you earn over £100,000, your personal allowance is reduced by £1 for every £2 you earn above that threshold.
**Basic rate, higher rate, and additional rate**
In England and Wales, the basic rate of income tax is 20% on earnings between £12,571 and £50,270. The higher rate is 40% on earnings between £50,271 and £125,140. Above £125,140, the additional rate of 45% applies. Scotland has a different system with five tax bands, offering more nuanced progression at different income levels.
**National Insurance contributions**
Income tax is only part of the picture. National Insurance contributions are also due on earnings, and the rates and thresholds vary. For employees, the main rate is 8% on earnings between £12,570 and £50,270, and 2% above that. Self-employed individuals pay different rates, typically 9% on profits between £11,908 and £50,270.
**Planning your tax**
Understanding these bands helps you plan your income. For example, if you're close to the higher rate threshold, you might consider contributing to a pension, which reduces your taxable income. Similarly, if you're self-employed, timing invoices or expenses strategically can help manage your tax bill.
**Learn more:** For professional guidance on this topic, visit [Accounted For Ltd](https://accountedforltd.co.uk/self-assessment).
Learn more: For professional guidance on this topic, visit Accounted For Ltd