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Income tax rates

This advice applies to Wales

The tables on this page show the percentage rates of income tax applied to taxable income in the current and past 4 tax years.

A tax year runs from 6 April one year to 5 April the following year. The percentage rates or bands of taxable income can change every tax year.

You might have some income that's not taxable. The figures on this page refer to your taxable income and not your total income. Check what income is taxable

Income tax: taxable bands and rates 2020/2021

Taxable income
(England and Wales)
Rate of tax
£0 - £12,500 0% (personal allowance)
£12,501 - £50,000 20% (basic rate)
£50,001 - £150,000 40% (higher rate)
Over £150,000 45% (additional rate)
Taxable income
(Scotland)
Rate of tax
£0 - £12,500 0% (personal allowance)
£12,501 - £14,585 19% (starter rate)
£14,586 - £25,158 20% (basic rate)
£25,159 - £43,430 21% (intermediate rate)
£43,431 - £150,000 41% (higher rate)
over £150,000 46% (top rate)

Personal allowance

Most taxpayers are allowed a certain amount of tax-free income, called a personal allowance, of £12,500.

Basic rate

In England and Wales, tax is payable at the basic rate of 20% on taxable income up to £50,000. In Scotland tax is payable at three different rates (19%, 20% and 21%) on taxable income up to £43,430.

Higher rate

If you live in England or Wales and you have taxable income of more than £50,000, you'll have to pay the higher rate of 40% tax on the amount above £50,000 up to £150,000. If you live in Scotland, you'll have to pay the higher rate of 41% tax on the amount above £43,430 up to £150,000.

Additional rate

If you live in England or Wales and have taxable income of more than £150,000, you'll have to pay the additional rate of 45% tax on the amount above this level. If you live in Scotland, you'll have to pay a top rate of 46%. 

Work out how much tax you have to pay

Check how much income tax you'll have to pay.

Personal Savings Allowance

Most people can earn some income from their savings without paying tax.

If you’re a basic rate taxpayer you can earn up to £1,000 in savings tax free. Higher rate taxpayers can earn up to £500. This is called the Personal Savings Allowance.

If your total taxable income is £17,500 or less, you won’t pay any tax on your savings income.

Read more about the Personal Savings Allowance on GOV.UK.

Income tax: taxable bands and rates for previous years

Tax year 2019/2020

Taxable income
(England and Wales)
Rate of tax
£0 - 12,500 0% (personal allowance)
£12,501 - £50,000 20% (basic rate)
£50,001 - £150,000 40% (higher rate)
Over £150,000 45% (additional rate)

Taxable income
(Scotland)
Rate of tax
£0 - £12,500 0% (personal allowance)
£12,501 - £14,549 19% (starter rate)
£14,550 - £24,944 20% (basic rate)
£24,945 - £43,430 21% (intermediate rate)
£43,431 - £150,000 41% (higher rate)
over £150,000 46% (top rate)

Tax year 2018/2019

Taxable income
(England and Wales)
Rate of tax
£0 - £11,850 0%
£11,851 - £46,350 20% (basic rate)
£46,351 - £150,000 40% (higher rate)
Over £150,000 45% (additional rate)
Taxable income
(Scotland)
Rate of tax
£0 - £11,850 0%

£11,851 - £13,850

19% (starter rate)

£13,851 - £24,000

20% (basic rate)

£24,001 - £43,430

21% (intermediate rate)
£43,431 - £150,000 41% (higher rate)
Over £150,000 46% (top rate)

Tax year 2017/2018

Taxable income
Rate of tax
£0 - £11,500 0%
£11,501 - £45,000 20% (basic rate)
£45,001 - £150,000 40% (higher rate)
Over £150,000 45% (additional rate)

Tax year 2016/2017

Taxable incomeRate of tax
£0 - £11,000 0%
£11,001 - £43,000 20% (basic rate)
£43,001 - £150,000 40% (higher rate)
Over £150,000 45% (additional rate)

Dividends

If you get income from UK company shares or distributions from unit trusts (but not interest), this is taxed at different rates from other income. Find out more about dividends on GOV.UK.

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