Income tax rates in the UK

Note: This guide has been updated for the 2019/2020 tax year.

Currently the UK basic income tax rate is 20%.

This increases to 40% for your earnings above £50,000 and to 45% for earnings over £150,000.

Your earnings below £12,500 are tax free. This is called the personal allowance.

However for every £2 you earn over £100,000 this allowance is reduced by £1.

Example 1: Income tax on earning £35,000

  • The first £12,500 you earned is tax free
  • Remainder (£22,500) is taxed at 20%
  • Your tax bill: £4,500

Example 2: Income tax on earning £75,000

  • The first £12,500 you earned is tax free
  • The remainder up to £50,000 is taxed at 20% (£7,500)
  • What you earn above £50,000 is taxed at 40% (£10,000)
  • Your total tax bill: £17,500

In a nutshell: UK income tax bands and rates for 2019/2020

Income Tax rate
Up to £12,500 0% Personal allowance
£12,501 to £50,000 20% Basic rate
£50,000 to £150,000 40% Higher rate
over £150,000 45% Additional rate

If you need the income tax for previous tax years:

If you want to easily see how much tax you need to pay view our income tax calculator.

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