Income Tax rates and Personal Allowances

27-11-2019

Current rates and allowances

How much Income Tax you pay in each tax year depends on:

  • How much of your income is above your Personal Allowance
  • How much of your income falls within each tax band

Some income is tax-free.

The current tax year is from 6 April 2019 to 5 April 2020.

Your tax-free Personal Allowance

The standard Personal Allowance is £12,500, which is the amount of income you do not have to pay tax on.

Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000.

Income Tax rates and bands

The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,500.

Previous tax years

The standard Personal Allowance from 6 April 2018 to 5 April 2019 was £11,850.

Tax rateTaxable income above your Personal Allowance for 2018 to 2019
Basic rate 20%£0 to £34,500
People with the standard Personal Allowance started paying this rate on income over £11,850
Higher rate 40%£34,501 to £150,000
People with the standard Personal Allowance started paying this rate on income over £46,351
Additional rate 45%Over £150,000

Example : You had £35,000 of taxable income and you got the standard Personal Allowance of £11,850. You paid basic rate tax at 20% on £23,150 (£35,000 minus £11,850).

Your Personal Allowance would have been smaller if your income was over £100,000, or bigger if you got Marriage Allowance or Blind Person’s Allowance.

Other rates and earlier tax years

HM Revenue and Customs (HMRC) publishes tables with full rates and allowances for current and past tax years.

Income over £100,000

Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,000 or above. You’ll also need to do a Self Assessment tax return. If you do not usually send a tax return, you need to register by 5 October following the tax year you had the income. You’ll get a letter telling you what to do next after you’ve registered.