Income tax rates and allowances
Income Tax Allowances
| Income Tax Allowances | 2025-26 | |
|---|---|---|
| Personal Allowance (born after 5 April 1948) | £12,570 | |
| Income limit for Personal Allowance1 | £100,000 | |
Personal Savings Allowance
| ||
| Dividend allowance (0%) | £500 | |
| Transferable tax allowance for married couples/civil partners | £1,260 | |
| Rent-A-Room limit – £7,500 Capital Gains Tax (2025-26, per person)
| £7,500 |
- The Personal Allowance reduces by £1 for every £2 of income above £100,000 (applies to all ages).
- Marriage Allowance: Transfer 10% of allowance if neither partner pays above the basic rate. Tax reduction = 20% of transferred amount. More info: gov.uk/marriage-allowance.
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Income Tax Allowances in England/Wales/Ireland (2025-26)
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £37,700 | 20% |
| Higher Rate | £37,701 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
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Income Tax Allowances in Scotland (2025-26)
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £15,397 | 19% |
| Basic Rate | £15,398 – £27,491 | 20% |
| Intermediate Rate | £27,492 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 41% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
