What are the UK income tax rates for 2025-26?

For 2025-26, UK income tax rates are: £0-£12,570 = 0% (Personal Allowance), £12,571-£50,270 = 20% (Basic rate), £50,271-£125,140 = 40% (Higher rate), £125,141+ = 45% (Additional rate). The Personal Allowance reduces by £1 for every £2 earned over £100,000.

What are the National Insurance rates for 2025-26?

Employee National Insurance rates for 2025-26 are: 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Employer NI is 15% on earnings above £5,000.

What is the Pension Annual Allowance for 2025-26?

The Pension Annual Allowance for 2025-26 is £60,000. This is the maximum you can save into pensions each year with tax relief. Auto-enrolment minimum contributions are 8% total (3% employer, 5% employee).

What is the Personal Allowance in the UK?

The Personal Allowance is £12,570 for 2025/26. This is the amount you can earn tax-free each year. If you earn less than this, you generally don't pay income tax. The allowance has been frozen at this level since 2022 and will remain so until at least April 2028.

What happens to my Personal Allowance if I earn over £100,000?

Your Personal Allowance reduces by £1 for every £2 you earn over £100,000. This means if you earn £125,140 or more, you have no Personal Allowance at all. This creates an effective 60% tax rate on income between £100,000 and £125,140.

How does my tax code work?

Your tax code tells your employer how much tax-free income you can have. The standard code for 2025/26 is 1257L, meaning you get £12,570 tax-free. The 'L' means you're entitled to the standard Personal Allowance. Different letters indicate different circumstances, such as 'BR' (all income taxed at basic rate) or 'K' (you owe tax from a previous year).

What happens if I have two jobs?

Your Personal Allowance is usually applied to your main job (the one paying you the most). Your second job will typically have a tax code of 'BR', meaning all earnings are taxed at 20% from the first pound. At the end of the tax year, HMRC calculates your total tax and issues a refund or bill if needed.

What is a tax refund and when do I get one?

A tax refund occurs when you've paid more tax than you owe, often because you didn't work for the full tax year, had incorrect tax codes, or didn't claim allowable expenses. HMRC usually issues refunds automatically after reviewing your records, or you can claim via Self Assessment or by contacting HMRC directly.

What expenses can I claim tax relief on?

You can claim tax relief on expenses you must pay for your job that your employer doesn't reimburse. This includes professional subscriptions, uniforms and work clothing, tools and equipment, and working from home costs. Claims under £2,500 can be made using form P87; larger claims require Self Assessment.

Can I claim for travelling to work?

Generally, no. Travel between your home and permanent workplace is considered ordinary commuting and isn't tax-deductible. However, you can claim for travel to temporary workplaces (sites you work at for less than 24 months), travel between different workplaces, or travel required as part of your duties.

How much can I claim for using my own car for work?

For 2025/26, you can claim 45p per mile for the first 10,000 business miles, then 25p per mile after that. Motorcycles are 24p per mile and bicycles 20p per mile. These rates cover all running costs including fuel, insurance, and wear and tear. Keep a mileage log with dates, destinations, and purpose.

Can I claim tax relief for working from home?

If you're required to work from home (not just choosing to), you can claim £6 per week (£312 per year) without receipts. This covers additional household costs like heating and electricity. Self-employed people can claim higher amounts using HMRC's simplified expenses: £10/month for 25-50 hours, £18 for 51-100 hours, or £26 for 101+ hours worked from home.

What is the Marriage Allowance?

Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your spouse or civil partner if you earn under £12,570 and they're a basic rate taxpayer (earning between £12,571 and £50,270). This can reduce their tax by up to £252 per year. You can backdate claims for up to 4 years.

What are the UK income tax bands for 2025/26?

For England, Wales and Northern Ireland: £0-£12,570 = 0% (Personal Allowance), £12,571-£50,270 = 20% (Basic rate), £50,271-£125,140 = 40% (Higher rate), Over £125,140 = 45% (Additional rate). Scotland has different rates and bands. These thresholds are frozen until at least April 2028.

What is National Insurance and when do I pay it?

National Insurance (NI) contributions fund state benefits including the State Pension and NHS. For 2025/26, employees pay 8% on earnings between £242 and £967 per week (£12,570-£50,270 annually), then 2% on earnings above that. You stop paying when you reach State Pension age, though your employer continues to pay.

What changed with employer National Insurance in 2025?

From April 2025, employer NI increased from 13.8% to 15%, and the threshold dropped from £9,100 to £5,000 per year. This means employers pay more NI on employee wages. To help small businesses, the Employment Allowance increased from £5,000 to £10,500, allowing eligible employers to reduce their NI bill.

How much tax do I pay on a second job?

There's no special 'second job tax rate'. However, since your Personal Allowance is usually applied to your main job, your second job is typically taxed at 20% from the first pound (tax code BR). Your total tax liability is based on combined earnings from all jobs, calculated when you file a tax return or when HMRC reviews your records.

What is the Savings Allowance?

The Personal Savings Allowance lets you earn interest tax-free depending on your tax band: £1,000 for basic rate taxpayers, £500 for higher rate taxpayers, and £0 for additional rate taxpayers. You may also get up to £5,000 tax-free through the Starting Rate for Savings if your other income is low.

When is the Self Assessment deadline?

For the 2024/25 tax year (ending 5 April 2025): Paper returns must reach HMRC by 31 October 2025. Online returns and tax payments are due by 31 January 2026. If you want to pay via your tax code, submit by 30 December 2025. Missing deadlines results in a £100 penalty plus additional charges.

Do I need to file a Self Assessment tax return?

You need to file if you're self-employed earning over £1,000, have untaxed income (rental, foreign, or investment income), earn over £100,000, need to pay the High Income Child Benefit Charge (income over £60,000), or have capital gains to report. HMRC's online tool can help you check if you need to file.

How is my pension taxed?

Pension contributions receive tax relief: basic rate taxpayers get 20% added automatically (so £80 becomes £100 in your pension). Higher and additional rate taxpayers can claim extra relief via Self Assessment. The Annual Allowance for 2025/26 is £60,000 or 100% of your earnings, whichever is lower. The Lifetime Allowance was abolished in April 2024.

When do I start repaying my Student Loan?

You repay 9% of income above the threshold for your plan type. For 2025/26: Plan 1 (pre-2012 England/Wales, NI): £26,065. Plan 2 (2012-2023 England/Wales): £28,470. Plan 4 (Scotland): £32,745. Plan 5 (from August 2023): repayments start April 2026 at £25,000 threshold. Postgraduate loans are 6% above £21,000.

Can I check my tax information online?

Yes, through your Personal Tax Account on GOV.UK. You can check your tax code and estimate, see your employment history and income, claim tax refunds, manage your State Pension forecast, and update your details. You can also use the HMRC app for quick access to tax information and to make payments.

What are the Scottish income tax rates?

Scotland has different rates for 2025/26: 19% Starter (£12,571-£15,397), 20% Basic (£15,398-£27,491), 21% Intermediate (£27,492-£43,662), 42% Higher (£43,663-£75,000), 45% Advanced (£75,001-£125,140), 48% Top (over £125,140). The Personal Allowance of £12,570 still applies to Scottish taxpayers.

What tax changes are coming in 2026 and beyond?

Income tax thresholds remain frozen until at least April 2028 (extended to 2031 in the 2024 Autumn Budget). Making Tax Digital (MTD) for Income Tax starts April 2026 for self-employed and landlords with turnover over £50,000, requiring quarterly digital updates to HMRC instead of annual Self Assessment returns.

What is the tax-free threshold in Australia?

The first $18,200 of your yearly income is tax-free. If you earn less than this amount, you generally don't pay income tax, though you may still need to lodge a return to receive any tax withheld as a refund.

How do I claim the tax-free threshold?

You claim it by answering 'Yes' to the question "Do you want to claim the tax-free threshold?" on your Tax File Number (TFN) declaration form when you start a new job. You should only claim it from one employer.

What happens if I have two jobs?

You should claim the tax-free threshold from your primary payer (usually the job with the highest salary). For your second job, select 'No' on the TFN declaration, and you will be taxed at a higher rate from the first dollar to help prevent a tax debt at the end of the year.

What is a tax refund?

A tax refund is money paid back to you by the ATO when you have paid more tax during the year (via PAYG withholding from your pay) than you actually owe. This often happens if you have claimed valid tax deductions or tax offsets.

Why do I have a tax bill (tax debt)?

This happens if you haven't paid enough tax during the year. Common reasons include: moving into a higher tax bracket, having multiple jobs without adjusting withholding, investment income (like bank interest or dividends) where tax wasn't withheld, or having a HECS/HELP debt.

What tax deductions can I claim?

You can claim deductions for expenses directly related to earning your income. Common examples include vehicle and travel expenses, clothing and laundry for work uniforms, home office expenses, and self-education costs. You must have spent the money yourself and not been reimbursed.

Can I claim my drive to work?

Generally, no. Normal travel between your home and your regular workplace is considered a private expense. You can only claim car expenses if you travel directly between two separate jobs on the same day, travel to an alternate workplace, or must carry bulky tools that cannot be stored at work.

How much can I claim for laundry without receipts?

You can claim up to $150 for laundry expenses (washing, drying, ironing work clothes) without written evidence, provided the calculation is reasonable. The standard rate is $1 per load if you wash work clothes with other items, or $2 per load for work-only loads.

What is the 'cents per kilometre' method for car expenses?

This is a simplified way to claim car expenses without keeping a logbook. For 2024-25 and 2025-26, you can claim 88 cents per kilometre for up to a maximum of 5,000 business kilometres per car per year. This rate covers all car running expenses including fuel, registration, and depreciation.

Can I claim my home internet or phone bill?

Yes, but only the work-related portion. You cannot claim the full bill if you also use it for personal purposes. You need to calculate the percentage of use that is for work and claim only that amount. For working from home, you can use the fixed rate method of 70 cents per hour which covers phone, internet, electricity and stationery.

What are the tax brackets for 2025-26?

For residents: $0-$18,200 = 0%, $18,201-$45,000 = 16%, $45,001-$135,000 = 30%, $135,001-$190,000 = 37%, $190,001+ = 45%. These rates do not include the 2% Medicare levy. From 1 July 2026, the 16% rate will drop to 15%, and from 1 July 2027, it will drop further to 14%.

What is the Medicare Levy?

The Medicare levy is 2% of your taxable income. It helps fund Australia's public health system (Medicare). It is calculated on top of your income tax. Some individuals may be eligible for a reduction or exemption based on their income level or medical circumstances.

Do I have to pay the Medicare Levy Surcharge (MLS)?

You may have to pay the MLS (an extra 1% to 1.5%) if your income is above a certain threshold and you do not have an appropriate level of private patient hospital cover. For 2025-26, the threshold is $101,000 for singles or $202,000 for families.

How much tax do I pay on my second job?

There is no specific 'second job tax rate.' However, if you don't claim the tax-free threshold on your second job, your employer will withhold tax at a higher rate (starting from the first dollar) to help ensure you don't underpay tax for the year. Your total tax is calculated on your combined income when you lodge your return.

What is the Low Income Tax Offset (LITO)?

LITO is a tax offset that reduces the tax you pay if you earn up to $66,667. The maximum offset is $700 for incomes up to $37,500. It phases out between $37,500 and $66,667. You don't need to apply for it; the ATO calculates it automatically when you lodge your return.

When is the tax return deadline?

If you are lodging yourself (via myTax), the deadline is 31 October. If you use a registered tax agent, you may have until May of the following year, but you usually need to be registered with them by 31 October to get the extension.

Do I need to lodge a tax return if I earned under $18,200?

Even if you don't owe tax, you may still need to lodge a return if you had any tax withheld from your pay (to get a refund). If you earned under the threshold and had no tax withheld, you might need to submit a 'Non-lodgment advice' instead of a full return.

Is my superannuation taxed?

Yes. Employer contributions (SG) and salary sacrifice contributions are generally taxed at 15% within the super fund. This is usually much lower than your marginal income tax rate, which is why salary sacrificing into super can be a tax-effective strategy. The concessional contribution cap for 2025-26 is $30,000.

What is HECS/HELP repayment and when do I start paying?

If you have a study loan (HECS-HELP, FEE-HELP, etc.), you must start repaying it once your income reaches the minimum threshold. For 2025-26, the threshold is $67,000. From 2025-26, repayments use a new marginal system—you only repay on income above the threshold (15c per $1 over $67,000), not your total income.

Can I track the progress of my tax return?

Yes, you can track the status of your return by logging into your myGov account linked to the ATO, or by using the ATO app. You'll be able to see if it's been received, is being processed, or has been completed.

How much am I saving from the Stage 3 tax cuts?

The Stage 3 tax cuts (from 1 July 2024) lowered the 19% rate to 16% and the 32.5% rate to 30%. All taxpayers benefit: someone earning $45,000 saves around $804/year, $80,000 saves $1,679/year, $120,000 saves $2,679/year, and $200,000 saves $4,529/year compared to the old rates.

What tax changes are coming in 2026 and 2027?

From 1 July 2026, the 16% tax rate (on income $18,201-$45,000) will drop to 15%, saving $268 per year for those earning above $45,000. From 1 July 2027, this rate drops further to 14%, saving $536 per year. These cuts are now legislated.

Free UK Income Tax Calculator

How much tax will I pay? Use our free UK Income Tax Calculator 2025-26 to find out instantly. Enter your salary to see your Income Tax, National Insurance contributions, student loan repayments, and take-home pay — calculated using the latest HMRC rates.

Tax Calculator

2025-26 HMRC Tax Rates • Frozen Thresholds Applied

1 Basic Information

Tax Year

Tax Region

2 Income Details

Gross Salary

Show detailed hours/days settings

Hours/Week

Weeks/Year

Days/Week

Hours/Day

Bonus (Annual)

Bonus Frequency

Overtime Hours/Week

Overtime Rate

Other Taxable Income

Rental, dividends, interest, etc.

Taxable Benefits (BIK)

Company car, medical insurance, etc.

Pension Contribution % % of gross salary you contribute

Employer Pension % % of gross salary employer contributes

Pension Type Check with your pension provider

Additional Lump Sum

Extra annual contribution

⚠️ Annual Allowance 2025-26: £60,000
Total pension contributions above £60k may incur tax charges. Tapered for high earners over £260k adjusted income.

Student Loan Plan

Postgraduate Loan

2025-26 Thresholds:
Plan 1: £26,065/yr (9%) • Plan 2: £28,470/yr (9%)
Plan 4: £32,745/yr (9%) • Plan 5: £25,000/yr (9%)
Postgraduate: £21,000/yr (6%)

Gift Aid Donations

Extends basic rate band

Professional Subscriptions

HMRC approved bodies only

Blind Person's Allowance

Marriage Allowance

Marriage Allowance: Transfer up to £1,260 of Personal Allowance to your spouse/civil partner if they're a basic rate taxpayer. Worth up to £252/year.

3 Options

Exempt from National Insurance (State Pension Age) No Personal Allowance (2nd job or BR code) Self-Employed (Class 4 NI)

Your Estimated Tax & NI

£8,432

Taxable Income£45,000

Income Tax£6,486

National Insurance£3,946

Student Loan£0

Your Take Home Pay£34,568

Marginal Tax Rate40%

Pay Breakdown by Period

Period	Gross Pay	Tax + NI	Net Pay	Pension

Tax & NI Breakdown

Income Tax£6,486

National Insurance£3,946

Student Loan£0

Postgraduate Loan£0

Total Deductions£10,432

Pension Contributions

Your Contribution£2,250

Tax Relief (20%)+£450

Employer Contribution£1,350

Total Annual Pension£4,050

💷 Pay Rise Impact: A £1,000 pay rise gives you £580 after tax & NI (at your marginal rate).

About This Calculator

Uses official HMRC tax rates for 2025-26 with frozen thresholds until 2028. Includes Personal Allowance tapering, Scottish rates, NI, and Student Loan thresholds. Results are estimates only.

See how your income compares to other UK taxpayers based on ONS/HMRC statistics 2023-24.

Gender

Age Group

65th

Income Percentile

You earn more than 65% of UK taxpayers

£37,430

Mean Income

£28,400

Median Income

£64,800

Top 10% Threshold

£19,800

To Reach Top 10%

Income Distribution

Data Source

HMRC Personal Incomes Statistics 2022-23 & ONS ASHE 2024

Your income taxed in each band for England, Wales & NI

Personal Allowance Taper: If you earn over £100,000, your Personal Allowance reduces by £1 for every £2 earned above £100k. At £125,140, your allowance is £0.

Where your £10,432 in tax goes (2024-25 HM Treasury estimates)

● Social Protection: £3,130

● Health (NHS): £1,982

● Education: £939

● Defence: £522

● General Services: £1,252

● Other: £2,607

Source

HM Treasury Public Spending Statistics 2024-25

Personalised tax-saving suggestions based on your calculation.

Effective Tax Rate

14.4%

Marginal Rate

40%

Total Deductions

£10,432

Disclaimer: These recommendations are for informational purposes only and should not be considered as professional financial advice.

UK Income Tax Rates 2025-26

The 2025-26 tax year runs from 6 April 2025 to 5 April 2026. These rates apply to England, Wales and Northern Ireland. Scotland has different rates.

Taxable Income	Tax Band	Tax Rate
£0 – £12,570	Personal Allowance	0%
£12,571 – £50,270	Basic rate	20%
£50,271 – £125,140	Higher rate	40%
£125,141+	Additional rate	45%

Student Loans 2025-26

Repay 9% of income above threshold (6% for Postgraduate). Plan affects threshold.

Plan 1 £24,990

Plan 2 £28,470

Plan 4 (Scotland) £32,745

Plan 5 £25,000

Postgraduate £21,000

National Insurance (Employee)

Class 1 NI contributions on earnings from employment.

Below £12,570/yr 0%

£12,570 – £50,270 8%

Above £50,270 2%

Employer NI Rate 15%

Pension 2025-26

Annual Allowance for tax-relieved pension contributions.

Annual Allowance £60,000

Money Purchase AA £10,000

Auto-Enrol Total 8% min

Employer Minimum 3%

Personal Allowance Tapering 2025-26

Your Personal Allowance reduces if your income exceeds £100,000:

Adjusted Net Income	Personal Allowance	Effective Rate
Up to £100,000	£12,570	40%
£100,001 – £125,140	Tapered (reduces by £1 per £2)	60% effective
Over £125,140	£0	45%

The 60% effective rate occurs because you lose £1 of Personal Allowance for every £2 earned above £100,000, creating an additional 20% tax on that band.

Tax Allowances 2025-26

Marriage Allowance

Transfer up to £1,260 of your Personal Allowance to your spouse or civil partner if you're a non-taxpayer and they're a basic rate taxpayer:

Allowance	Amount
Maximum Transfer	£1,260
Tax Saving (20%)	Up to £252

Savings & Dividend Allowances

Tax-free allowances on savings interest and dividends:

Allowance Type	Basic Rate	Higher Rate	Additional Rate
Personal Savings Allowance	£1,000	£500	£0
Dividend Allowance	£500 (all taxpayers)
Starting Rate for Savings	0% on first £5,000 (if eligible)

Scottish Income Tax Rates 2025-26

Scottish Rates

Different rates apply to Scottish taxpayers:

Band	Rate
£12,571 – £15,397	19% (Starter)
£15,398 – £27,491	20% (Basic)
£27,492 – £43,662	21% (Intermediate)
£43,663 – £75,000	42% (Higher)
£75,001 – £125,140	45% (Advanced)
Over £125,140	48% (Top)

Non-Residents

No Personal Allowance for most non-residents:

Income	Rate
£0 – £37,700	20%
£37,701 – £125,140	40%
Over £125,140	45%

Some non-residents may still qualify for Personal Allowance.

Common Tax Reliefs 2025-26

Reliefs and allowances that can reduce your tax bill:

💷 Pension Contributions Tax relief at your marginal rate up to £60,000

🏠 Work from Home £6/week flat rate or actual costs

🚗 Mileage Allowance 45p per mile (first 10,000), then 25p

👔 Uniform & Tools Flat rate deductions by profession

🛡️ Professional Subscriptions HMRC-approved bodies only

🏥 Gift Aid Extends basic rate band for higher earners

ISA Allowances 2025-26

Individual Savings Accounts provide tax-free savings and investment growth:

ISA Type	Annual Limit
Total ISA Allowance	£20,000
Lifetime ISA (age 18-39)	£4,000 (counts towards £20k)
Junior ISA	£9,000

The £20,000 annual limit can be split across Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, and Lifetime ISA.

Key Tax Dates 2025-26

6 April 2025

Tax Year Starts

5 April 2026

Tax Year Ends

31 Oct 2026

Paper Return Deadline

31 Jan 2027

Online Return & Payment

Official HMRC Sources

Tips to Maximise Your Tax Return

General strategies UK taxpayers can consider to legally reduce their tax bill.

Maximise Your Pension Contributions

Contributions to workplace or personal pensions receive tax relief at your marginal rate. Higher-rate taxpayers can claim an additional 20% via Self Assessment. Annual allowance is £60,000.

Check Your Tax Code

Review your tax code on payslips or your Personal Tax Account. Errors are common and can result in overpaying tax throughout the year. The standard code for 2025-26 is 1257L.

Claim Work From Home Relief

If your employer requires you to work from home, you can claim tax relief on additional household costs — either £6/week flat rate or actual expenses with evidence.

Use Your ISA Allowance

While ISA contributions aren't tax-deductible, all growth and withdrawals are tax-free. The 2025-26 annual allowance is £20,000 across all ISA types.

Don't Miss Gift Aid

When donating to charity, tick the Gift Aid box to let the charity claim an extra 25p for every £1 you give. Higher-rate taxpayers can claim the difference via Self Assessment.

Claim Marriage Allowance

If you're married or in a civil partnership and one partner earns under £12,570, they can transfer £1,260 of their Personal Allowance to the higher earner, saving up to £252/year.

UK Income Tax News & Updates

The recent changes, policy discussions, and key updates on income tax in the United Kingdom.

Frequently Asked Questions

Everything you need to know about income tax in the United Kingdom.

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About this calculator

This calculator provides an estimate based on official HMRC tax rates for England, Wales and Northern Ireland. Scottish rates differ. We don’t store your data. This is not financial advice. For official information, please refer to the HMRC .

Free UK Income Tax Calculator

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Enter Income

See Breakdown

Tax Calculator

Pay Breakdown by Period

Income Distribution

UK Income Tax Rates 2025-26

Student Loans 2025-26

National Insurance (Employee)

Pension 2025-26

Personal Allowance Tapering 2025-26

Tax Allowances 2025-26

Marriage Allowance

Savings & Dividend Allowances

Scottish Income Tax Rates 2025-26

Scottish Rates

Non-Residents

Common Tax Reliefs 2025-26

ISA Allowances 2025-26

Key Tax Dates 2025-26

Official HMRC Sources

Tips to Maximise Your Tax Return

Maximise Your Pension Contributions

Check Your Tax Code

Claim Work From Home Relief

Use Your ISA Allowance

Don't Miss Gift Aid

Claim Marriage Allowance

UK Income Tax News & Updates

Frequently Asked Questions

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About this calculator