Last reviewed: April 2025
Income tax bands, National Insurance thresholds, student loan repayment rates and self-employment contributions for the 2025/26 tax year. All figures are sourced from HMRC.
The UK tax year runs from 6 April 2025 to 5 April 2026. The personal allowance — the amount you can earn before paying income tax — is £12,570 for 2025/26, unchanged from the previous year as the government has maintained the freeze on income tax thresholds first introduced in 2021.
In England and Wales, income above the personal allowance is taxed at 20% (basic rate), 40% (higher rate) and 45% (additional rate). Scotland has a different structure with six bands — see our Scotland vs England comparison for a full breakdown.
Self-employed people pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 NICs apply on profits above the small profits threshold of £6,725.
| Band | Rate | Threshold |
|---|---|---|
| Tax-free (personal allowance) | 0% | Up to £12,570 |
| basic_rate | 20% | £12,571 – £50,270 |
| higher_rate | 40% | £50,271 – £125,140 |
| additional_rate | 45% | £125,141 – £125,140 |
| Band | Rate | Threshold |
|---|---|---|
| Personal allowance | 0% | Up to £12,570 |
| starter_rate | 19% | £12,571 – £15,397 |
| basic_rate | 20% | £15,398 – £27,491 |
| intermediate_rate | 21% | £27,492 – £43,662 |
| higher_rate | 42% | £43,663 – £75,000 |
| advanced_rate | 45% | £75,001 – £125,140 |
| top_rate | 48% | £125,141 – £125,140 |
| Rate | Earnings threshold |
|---|---|
| 8% | £12,570 – £50,270/yr |
| 2% | Above £50,270/yr |
| 15.0% employer | On earnings above £5,000/yr |
| Plan | Threshold | Rate |
|---|---|---|
| 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 Loan | £21,000/yr | 6% |
| Scottish postgraduate | £21,000/yr | 6% |
Here is how a standard employment income of £35,000 is calculated for a single earner in England with no pension contributions or student loan, using 2025/26 rates.
| Gross annual salary | £35,000 |
| Personal allowance (tax-free) | −£12,570 |
| Taxable income | £22,430 |
| Income tax deducted | −£4,486 |
| Employee NI deducted | −£1,794 |
| Estimated take-home pay | £28,720/yr |
| Monthly take-home | £2,393/mo |
Estimate only. Use our salary calculator for pension contributions, student loans, Scottish rates and a full monthly breakdown.
Class 2 NI
£3.5/week
Paid if profits exceed £6,725/yr
Class 4 NI
6% / 2%
6% on £12,570–£50,270 profit; 2% above that
The 2025/26 tax year runs from 6 April 2025 to 5 April 2026. All UK tax years follow this April to April cycle, which dates back to the switch from the Julian to the Gregorian calendar in 1752.
The personal allowance for 2025/26 is £12,570. This is the amount you can earn before paying any income tax. Most UK residents get the full allowance automatically through their PAYE tax code. The allowance tapers to zero for incomes above £100,000 — reducing by £1 for every £2 earned above that threshold.
In England and Wales for 2025/26, income above the £12,570 personal allowance is taxed in bands: 20% on income from £12,571 to £50,270; 40% on income from £50,271 to £125,140; 45% on income from £125,141 to £125,140. Income above £125,140 is taxed at 45% and the personal allowance is fully withdrawn.
For 2025/26, employees pay National Insurance at 8% on earnings between £12,570 and £50,270 per year, and 2% on earnings above the upper earnings limit. Employers pay 15.0% on employee earnings above £5,000 per year.
Our salary calculator uses live 2025/26 rates including pension, student loan, and Scottish tax.
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