UK Income Tax Rates and Bands (2025)
Income Tax is calculated using different rates and bands. The amount you pay depends on your taxable income and the tax year.
Tax rates and bands for 2025
| 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 £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
How Income Tax is calculated
Income Tax is charged on your taxable income. This includes:
- earnings from employment
- earnings from self-employment
- most pensions income (state, occupational and private)
- rental income
- benefits you get from your job
- income from a trust
- interest on savings over your savings allowance
Personal Allowance
Most people get a Personal Allowance of tax-free income. This is the amount of income you can receive before you pay tax.
The standard Personal Allowance is £12,570 for the 2025 tax year.
Example calculation
If you earn £60,000 in the tax year, you'll pay:
- 0% on £12,570 (Personal Allowance) = £0
- 20% on £37,700 (£50,270 - £12,570) = £7,540
- 40% on £9,730 (£60,000 - £50,270) = £3,892
Total Income Tax = £11,432
You can use our UK Tax Calculator to quickly estimate your Income Tax and National Insurance based on your annual salary.