Income Tax rates and Personal Allowances
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1. Current rates and allowances
How much Income Tax you pay in each tax year depends on:
- how much of your income is above your Personal Allowance
- how much of your income falls within each tax band
The current tax year is from 6 April 2024 to 5 April 2025.
This guide is also available in Welsh (Cymraeg).
Your tax-free Personal Allowance
The standard Personal Allowance is 拢12,570, which is the amount of income you do not have to pay tax on.
It decreases if your income is over 拢100,000. For every 拢2 you earn over 拢100,000, you lose 拢1 of your tax-free Personal Allowance.
Blind Person鈥檚 Allowance
You may be able to earn more before you start paying Income Tax if you claim Blind Person鈥檚 Allowance. This tax-free allowance is added to your Personal Allowance.
Income Tax rates and bands
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of 拢12,570.
Income tax bands are different if you live in Scotland.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to 拢12,570 | 0% |
| Basic rate | 拢12,571 to 拢50,270 | 20% |
| Higher rate | 拢50,271 to 拢125,140 | 40% |
| Additional rate | over 拢125,140 | 45% |
You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over 拢125,140.
If you鈥檙e employed or get a pension
Check your Income Tax to see:
- your Personal Allowance and tax code
- how much tax you鈥檝e paid in the current tax year
- how much you鈥檙e likely to pay for the rest of the year
Other allowances
You have tax-free allowances for:
- savings interest
- dividend income, if you own shares in a company
You may also have tax-free allowances for:
- your first 拢1,000 of income from self-employment - this is your 鈥榯rading allowance鈥�
- your first 拢1,000 of income from property you rent (unless you鈥檙e using the Rent a Room Scheme)
Find out whether you鈥檙e eligible for the trading and property allowances.
You pay tax on any interest, dividends or income over your allowances.
Paying less Income Tax
You may be able to claim Income Tax reliefs if you鈥檙e eligible for them.
If you鈥檙e married or in a civil partnership
You may be able to claim Marriage Allowance to reduce your partner鈥檚 tax if your income is less than the standard Personal Allowance.
If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple鈥檚 Allowance.
2. Previous tax years
The standard Personal Allowance from 6 April 2023 to 5 April 2024 was 拢12,570.
| Tax rate | Taxable income above your Personal Allowance for 2023 to 2024 |
|---|---|
| Basic rate 20% | 拢0 to 拢50,270 (people with the standard Personal Allowance started paying this rate on income over 拢12,570) |
| Higher rate 40% | 拢50,271 to 拢125,140 (people with the standard Personal Allowance started paying this rate on income over 拢50,270) |
| Additional rate 45% | Over 拢125,141 |
Example
You had 拢35,000 of taxable income and you got the standard Personal Allowance of 拢12,570. You paid basic rate tax at 20% on聽 拢22,430 (拢35,000 minus 拢12,570).
When your Personal Allowance may vary
Your Personal Allowance would have been smaller if your income was over 拢100,000, or bigger if you got Marriage Allowance or Blind Person鈥檚 Allowance.
Other rates and earlier tax years
HM Revenue and Customs (HMRC) publishes tables with full rates and allowances for current and past tax years.
3. Income over 拢100,000
Your Personal Allowance goes down by 拢1 for every 拢2 that your adjusted net income is above 拢100,000. This means your allowance is zero if your income is 拢125,140 or above.
You鈥檒l also need to do a Self Assessment tax return if your adjusted net income is above 拢150,000.
If you do not usually send a tax return, you need to register by 5 October following the tax year you had the income.
Register for Self Assessment
You鈥檒l get a letter telling you what to do next after you鈥檝e registered.