What are the income tax rates and bands in the UK?
Answered 11 March 2026
Here is a comprehensive answer on UK income tax rates and bands for 2024-25.
What the law says
Framework (ITA 2007)
The Income Tax Act 2007 (ITA 2007) establishes the framework for income tax rates. The main rates at which income tax is charged are the basic rate, higher rate, and additional rate, with the actual percentages determined by Parliament each year.
For individuals, income is charged as follows (ITA 2007, s.10):
- Up to the basic rate limit → charged at the basic rate
- Above the basic rate limit and up to the higher rate limit → charged at the higher rate
- Above the higher rate limit → charged at the additional rate
Rates and Bands for 2024-25
The Finance Act 2024 sets the following rates for 2024-25:
| Rate | % |
|---|---|
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
The same rates apply as default rates (for non-UK resident individuals) and savings rates:
| Default/Savings Rate | % |
|---|---|
| Default/Savings basic rate | 20% |
| Default/Savings higher rate | 40% |
| Default/Savings additional rate | 45% |
Rate Bands (frozen through 2027-28)
The personal allowance is £12,570 and the basic rate limit is £37,700, both frozen for tax years 2022-23 through 2027-28. This means in practice:
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate band | £12,571 – £50,270* | 20% |
| Higher rate band | £50,271 – £125,140* | 40% |
| Additional rate | Over £125,140* | 45% |
*The higher rate limit is calculated as twice the personal allowance (£12,570 × 2) plus the basic rate limit (£37,700), giving £62,840 — but note the personal allowance is tapered away for incomes over £100,000, effectively creating a 60% marginal rate in that range.
Savings Income
The starting rate for savings is 0% (applying up to £5,000 of savings income for those with low non-savings income), and the savings nil rate is also 0%. The starting rate limit for savings is frozen at £5,000 for 2024-25.
Dividend Income
Dividend income is taxed at separate rates under ITA 2007, s.8:
| Rate | % |
|---|---|
| Dividend nil rate | 0% |
| Dividend ordinary rate | 8.75% |
| Dividend upper rate | 33.75% |
| Dividend additional rate | 39.35% |
| Trust rate | 45% |
| Dividend trust rate | 39.35% |
Devolved Rates
-
Scotland: Scottish taxpayers pay Scottish income tax rates (set independently by the Scottish Parliament) on their non-savings, non-dividend income. Savings and dividend income is still taxed at UK rates regardless of residency. Scottish taxpayers are identified by an "S" prefix in their tax code.
-
Wales: Welsh taxpayers pay Welsh income tax rates on their non-savings, non-dividend income, calculated by deducting 10 percentage points from the UK rate and adding the Welsh rate set by the Senedd. Welsh taxpayers are identified by a "C" prefix in their tax code.
HMRC guidance / practice
HMRC administers both Scottish and Welsh income tax on behalf of the respective devolved governments. Scottish income tax applies to those resident in the UK whose sole or main place of residence is in Scotland for more of the tax year than any other part of the UK. The same residency test applies for Welsh taxpayers.
PAYE deductions and reliefs are given at the highest rate of tax the individual is liable to, based on their residency status.
Citation sources
Income tax charge, rates etc Main rates of income tax for tax year 2024-25 2 For the tax year 2024-25 the main rates of income tax are as follows— a the basic rate is 20%, b the higher rate is 40%, and c the additional rate is 45%.
Part 2 Basic provisions Chapter 2 Rates at which income tax is charged The rates The ... basic rate , higher rate and additional rate 6 1 The main rates at which income tax is charged are— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b the basic rate, ... c the higher rate , and d the additional rate. 2 The ... basic rate , higher rate and additional rate for a tax year are the rates determined as such by Parliament for the tax year. 2A . . . . . . . . . . . . . . . . . . .
rsonal allowance starts to be withdrawn). 5B Before the start of the tax year the Treasury must make an order specifying the amount which is, as a result of subsection (5A), the higher rate limit for the tax year. 6 The basic rate limit and higher rate limit are increased in some circumstances: see— a section 414(2) (gift aid relief), and b section 192(4) of FA 2004 (relief for pension contributions). 7 See section 21 for indexation of the basic rate limit.
From 6 April 2016 the Scottish Government will be responsible for setting their own income tax rates for basic, higher and additional rate bands. From 6 April 2017 the Scottish Government can also increase or decrease the number or rate bands. Where the Scottish rate of income tax is applicable it will include an S prefix to the tax code. Scottish income tax is the amount of income tax a Scottish taxpayer will pay on their non-savings and non-dividend income. All savings and dividend income is
The Scotland Act 2012 gives the Scottish Government the powers to set Scottish income tax which is administered by HM Revenue & Customs (HMRC) on behalf of the Scottish Government. The introduction of Scottish income tax from 6 April 2016 will enable the Scottish Government to set the rates of income tax lower or higher than the rates that apply in the rest of the United Kingdom (England, Wales and Northern Ireland). If they set a different rate it will apply to all income tax rates, the basic r
Part 2 Basic provisions Chapter 2 Rates at which income tax is charged Income charged at particular rates Income charged at the ... basic , higher and additional rates: individuals 10 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Income tax on an individual's income up to the basic rate limit is charged at the basic rate .... 3 Income tax is charged at the higher rate on an individual's income above the basic rate limit and up to the higher rate limit. 3A Income tax is char
ax from 6 April 2019 will enable the Welsh Government to set the rates of income tax lower or higher than the rates that apply in the rest of the United Kingdom (England, Northern Ireland and Scotland). If they set a different rate it will apply to all income tax rates, the basic rate, the higher rate, and the additional rate will go up or down by the same percentage, relative to the UK rate. The total rate for Welsh taxpayers is the amount of income tax Welsh taxpayers will have to pay on their
PART 1 Income tax, corporation tax and capital gains tax Income tax charge, rates etc Basic rate limit and personal allowance for future tax years 5 1 For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 and 2027-28 , the amount specified in section 10(5) of ITA 2007 (basic rate limit) is “£37,700”. 2 For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 and 2027-28 , the amount specified in section 35(1) of ITA 2007 (personal allowance) is “£12,570”. 3 Accordingly— a section
Income tax charge, rates etc Default and savings rates of income tax for tax year 2024-25 3 1 For the tax year 2024-25 the default rates of income tax are as follows— a the default basic rate is 20%, b the default higher rate is 40%, and c the default additional rate is 45%. 2 For the tax year 2024-25 the savings rates of income tax are as follows— a the savings basic rate is 20%, b the savings higher rate is 40%, and c the savings additional rate is 45%.