UK Income Tax Rates 2025/26
| Band | Income Range | Tax Rate |
|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance Rates 2025/26
| Earnings | NI Rate (Employee) |
|---|
| Up to £12,570/year | 0% |
| £12,571 – £50,270/year | 8% |
| Over £50,270/year | 2% |
Student Loan Repayment Thresholds
| Plan | Repayment Threshold | Rate |
|---|
| Plan 1 | £24,990/year | 9% |
| Plan 2 | £27,295/year | 9% |
| Plan 4 (Scotland) | £31,395/year | 9% |
| Plan 5 (from 2023) | £25,000/year | 9% |
Frequently Asked Questions
How much tax do I pay on £30,000 in the UK? +
On a £30,000 salary in 2025/26, you pay approximately £3,486 in income tax (20% on £17,430 taxable income) and £1,394 in National Insurance (8% on £17,430). Your annual take-home is approximately £25,120 (£2,093/month).
What is the UK personal allowance in 2025/26? +
The personal allowance is £12,570 — the amount you can earn each tax year completely free of income tax. This has been frozen at £12,570 since 2021/22. It reduces by £1 for every £2 you earn above £100,000, disappearing entirely at £125,140.
Does pension contribution reduce my tax bill? +
Yes. Pension contributions made through salary sacrifice reduce your taxable income and also reduce your National Insurance contributions. A basic rate taxpayer contributing £100/month to their pension effectively costs them only £80 after tax relief.
What tax code should I have? +
Most employees with one job and the standard personal allowance will have tax code 1257L. If you have multiple jobs, other income, or unpaid tax from previous years, your code may be different. Check your payslip or P60, or contact HMRC to verify your code.
How do I calculate my hourly rate from my salary? +
Divide your annual salary by 52 (weeks) then by your weekly hours. For a £35,000 salary working 37.5 hours/week: £35,000 ÷ 52 ÷ 37.5 = £17.95/hour gross. For net hourly rate, use your annual take-home pay instead.