Income Tax in England, Wales and Northern Ireland
| Income | Rate | Tax |
|---|---|---|
| Up to £12,570 | 0% | Nil |
| £12,571 to £50,270 | 20% | 20% of income over £12,570 |
| £50,271 to £125,140 | 40% | £7,540 plus 40% of income over £50,270 |
| Over £125,140 | 45% | £42,516 plus 45% of income over £125,140 |
Most people get a £12,570 Personal Allowance, the income you don't pay tax on. It goes down by £1 for every £2 of income over £100,000, so it's zero once you earn £125,140. Between those two amounts you effectively pay 60% Income Tax on each extra pound. Wales sets its own rates, but for 2026/27 they're the same as England's.
Scottish income tax rates
If you live in Scotland, you pay Scottish income tax on your wages, with six bands instead of three:
| Income | Rate | Tax |
|---|---|---|
| Up to £12,570 | 0% | Nil |
| £12,571 to £16,537 | 19% | 19% of income over £12,570 |
| £16,538 to £29,526 | 20% | £753.73 plus 20% of income over £16,537 |
| £29,527 to £43,662 | 21% | £3,351.53 plus 21% of income over £29,526 |
| £43,663 to £75,000 | 42% | £6,320.09 plus 42% of income over £43,662 |
| £75,001 to £125,140 | 45% | £19,482.05 plus 45% of income over £75,000 |
| Over £125,140 | 48% | £47,701.55 plus 48% of income over £125,140 |
National Insurance
Employees pay Class 1 National Insurance on their earnings: 8% on earnings between £12,570 and £50,270 a year, and 2% on everything above. It's the same everywhere in the UK, and you stop paying it once you reach State Pension age. Unlike Income Tax, it's worked out separately for each pay period.
Student loan repayment thresholds
| Plan | Yearly threshold | You repay |
|---|---|---|
| Plan 1 | £26,900 | 9% of earnings above it |
| Plan 2 | £29,385 | 9% of earnings above it |
| Plan 4 | £33,795 | 9% of earnings above it |
| Plan 5 | £25,000 | 9% of earnings above it |
| Postgraduate loan | £21,000 | 6% of earnings above it |
Your tax code
Your employer uses your tax code to work out how much Income Tax to take from each payslip. The most common code, 1257L, means the standard £12,570 allowance. Read UK tax codes explained, or see your own take-home pay with the salary calculator.