Living in the UK

Income Tax in the UK

Income tax is a form of tax that UK taxpayers pay to the government on their income. We’ve written this article to help you understand the income tax rates in the UK.

What is income tax?

Simply put, income tax is the tax you have to pay the government based on your yearly income. It’s the government’s main source of revenue and is collected by HM Revenue & Customs (HMRC) on their behalf. The government uses the revenue from income tax to provide funding for public services such as the NHS, education and the welfare system. 

The tax calendar

The current tax year is from 6 April 2022 to 5 April 2023.

How much income tax you pay in each tax year depends on how much of your income is above your personal allowance and how much of your income falls within each tax band.

The tax-free personal allowance

The standard tax-free personal allowance is currently £12,570.

Your personal allowance may be more than this if you claim a marriage allowance or a blind person’s allowance.

Income tax rates in England, Wales and Northern Ireland

BandTaxable IncomeTax Rate
Personal AllowanceUp to £12,5700%
Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £150,00040%
Additional rateover £150,00045%

Income tax rates in Scotland

BandTaxable IncomeTax Rate
Personal AllowanceUp to £12,5700%
Starter rate£12,571 to £14,73219%
Basic rate£14,733 to £25,68820%
Intermediate rate£25,689 to £43,66221%
Higher rate£43,663 to £150,00041%
Top rateover £150,00046%

How much income tax will I pay?

You can check how much income tax you are likely to pay for the continuation of the year by clicking here.

This article has been written as a guide to provide information about income tax in the UK only. If you have any income tax queries, or tax queries in general, then please visit this page of the government website or consult a professional.

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