Income Tax rates and Personal Allowances

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Current rates and allowances

How much Income Tax you pay in each tax year depends on:

  • how much of your income is above your Personal Allowance
  • how much of your income falls within each tax band

Some income is tax-free.

The current tax year is from 6 April 2024 to 5 April 2025.

This guide is also available in Welsh (Cymraeg).

Your tax-free Personal Allowance

The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.

Your Personal Allowance may be bigger if you claim Blind Person’s Allowance. 

It’s smaller if your income is over £100,000.

Income Tax rates and bands

The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.

Income tax bands are different if you live in Scotland.

Band Taxable income Tax rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £125,140 40%
Additional rate over £125,140 45%

You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,140.

If you’re employed or get a pension

Check your Income Tax to see:

  • your Personal Allowance and tax code
  • how much tax you’ve paid in the current tax year
  • how much you’re likely to pay for the rest of the year

Other allowances

You have tax-free allowances for:

You may also have tax-free allowances for:

Find out whether you’re eligible for the trading and property allowances.

You pay tax on any interest, dividends or income over your allowances.

Paying less Income Tax

You may be able to claim Income Tax reliefs if you’re eligible for them.

If you’re married or in a civil partnership

You may be able to claim Marriage Allowance to reduce your partner’s tax if your income is less than the standard Personal Allowance.

If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple’s Allowance.

View a printable version of the whole guide

Part of Set up as a sole trader: step by step

  1. Step 1 Check if being a sole trader is right for you

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  2. Step 2 Choose your business name

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  3. Step 3 Check what records you need to keep

    When you start trading you must keep records. This will help you work out your profit or loss for your tax return.

    1. Find out what business records you need to keep

  4. Step 4 Register as a sole trader

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  5. Step 5 Check what taxes may apply to you

    1. Check what taxes may apply to you as a sole trader

  6. Step 6 Plan for your tax bill

    You may need to pay Income Tax on your profits and may need to pay National Insurance contributions.

    1. Get an estimate of how much you will need to pay
    1. You are currently viewing: Find out more about Income Tax rates
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    1. Join a webinar or watch a video to learn more about your responsibilities
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