The UK Personal Allowance

A key feature of the UK income tax system is the Personal Allowance. This is the amount of income you can earn each tax year before you start paying Income Tax. For the 2025/2026 tax year, the standard Personal Allowance is **£12,570**.

However, your Personal Allowance may be smaller if your income is over £100,000. It is reduced by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above.

The Personal Allowance is UK-wide and applies consistently regardless of whether you are an English, Welsh, Scottish, or Northern Irish taxpayer.

England & Northern Ireland Income Tax Bands (2025/2026)

For taxpayers in England and Northern Ireland, the income tax rates and bands (after the Personal Allowance) for the 2025/2026 tax year are:

• Basic Rate (20%): On income from £12,571 to £50,270
• Higher Rate (40%): On income from £50,271 to £125,140
• Additional Rate (45%): On income over £125,140

(Note: The limits above are based on the assumption that the individual is receiving the standard Personal Allowance of £12,570. The actual taxable income bands are £0-£37,700 for Basic, £37,701-£112,570 for Higher, and over £112,570 for Additional Rate when considering income *after* the Personal Allowance has been applied).

Scottish Income Tax Bands (2025/2026)

Scotland has its own set of income tax rates and bands for the 2025/2026 tax year, which are different from the rest of the UK:

• Starter Rate (19%): On income from £12,571 to £15,397
• Basic Rate (20%): On income from £15,398 to £27,491
• Intermediate Rate (21%): On income from £27,492 to £43,662
• Higher Rate (42%): On income from £43,663 to £75,000
• Advanced Rate (45%): On income from £75,001 to £125,140
• Top Rate (48%): On income over £125,140

Scottish taxpayers still receive the same UK Personal Allowance (£12,570 for 2025/2026). The bands shown above are the total income levels where these rates apply, assuming the standard Personal Allowance.

Welsh Income Tax Bands (2025/2026)

The Welsh Government has the power to set Welsh Rates of Income Tax (WRIT). For the 2025/2026 tax year, the Welsh rates have been set in line with England and Northern Ireland.

Therefore, Welsh taxpayers use the same income tax bands and rates as England and Northern Ireland for the 2025/2026 tax year:

• Basic Rate (20%): On income from £12,571 to £50,270
• Higher Rate (40%): On income from £50,271 to £125,140
• Additional Rate (45%): On income over £125,140

Key Differences Summarized (for 2025/2026)

• Number of Bands: Scotland has more tax bands (six, excluding the Personal Allowance as a 0% band implicitly) compared to England/NI/Wales (three taxable bands, plus PA).
• Rates: Scotland has different tax rates for several of its bands. Notably, it has a "Starter Rate" lower than the UK Basic Rate, an "Intermediate Rate", an "Advanced Rate", and a higher "Top Rate" compared to the UK Additional Rate.
• Thresholds: The income levels at which different tax rates apply vary significantly, especially for Scottish taxpayers. For example, the threshold for paying a rate higher than 21% starts at £43,663 in Scotland, while in England/NI/Wales, the 40% Higher Rate starts at £50,271.

These differences mean that for the same level of income, a Scottish taxpayer might pay a different amount of income tax compared to someone in England, Wales, or Northern Ireland.

It's important to use a calculator that considers your specific region to get an accurate estimate of your take-home pay. You can plan your taxes more effectively with this knowledge.