UK Income Tax Guide 2025/26: PAYE Bands, National Insurance, All Allowances & Take-Home Pay
The 2025/26 UK tax year (6 April 2025 – 5 April 2026) sees all income tax thresholds frozen at 2022 levels until April 2028. With wages rising and thresholds static, more earners are pulled into higher bands each year — making personal tax planning increasingly important.
Open UK Income Tax Calculator 2025/26 →
Income Tax Bands 2025/26 (England, Wales & NI)
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Above £125,140 | 45% |
Scottish taxpayers have 7 bands (19%–48%) set by the Scottish Parliament.
The £100,000 Personal Allowance Trap
Above £100,000, the personal allowance reduces by £1 for every £2 of income. At £125,140 it reaches zero — creating an effective 60% marginal tax rate in this range. Solution: pension contributions or Gift Aid donations reduce adjusted net income below the threshold, restoring the allowance.
National Insurance 2025/26 (Class 1 Employee)
| Income Band | Rate |
|---|---|
| Up to £12,570 (Primary Threshold) | 0% |
| £12,571 – £50,270 (UEL) | 8% |
| Above £50,270 | 2% |
Key Allowances 2025/26
- Personal Allowance: £12,570 (frozen to April 2028)
- Marriage Allowance: transfer up to £1,260 to basic-rate partner (saves up to £252/year)
- Blind Person’s Allowance: £3,130 additional
- Personal Savings Allowance: £1,000 (basic rate) / £500 (higher rate)
- Dividend Allowance: £500
- ISA Allowance: £20,000/year (fully tax-free)
Student Loan Thresholds 2025/26
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Postgraduate | £21,000 | 6% |
High Income Child Benefit Charge (HICBC)
If either partner earns above £60,000, child benefit is clawed back at 1% per £200 over £60,000. At £80,000 the full benefit is repaid. This creates an effective 64%+ marginal rate in this income range for families with children.
Related Calculators
- UK Income Tax Calculator 2025/26
- India Income Tax Calculator
- US Federal Income Tax Calculator
- Germany Income Tax Calculator
- Salary to Hourly Calculator
- Overtime Pay Calculator
Disclaimer: For official calculations use HMRC at gov.uk/estimate-income-tax. This guide covers England, Wales and Northern Ireland income tax for 2025/26.
