Income tax rates in the UK
Note: We’ve updated this guide for the 2019/2020 tax year.
UK income tax rates depend on your income.
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, your allowance is reduced by £1.
How to calculate it
Use this income tax calculator to see how much you should pay.
How your income tax is calculated
As a self-employed you have to pay your income tax and national insurance contributions yourself during your annual self assessment. Our calculator helps you quickly assess how much payment is due.
However you may be eligible for a tax refund when:
- You already made tax payments for the year but your annual income ended up smaller than planned
- You have done things that qualify for tax relief (made private pension contributions, give to charity, etc)
In your case when you earn £49,000:
Income tax breakdown
You pay no income tax on first £12,500 that you make
You pay £7,300 at basic income tax rate (20%) on the next £36,500