What are the current income tax rates?
Income tax rates show the percentage of your income you will pay as tax.
To determine your correct tax band, you must first identify your Personal Allowance rate using the table below. You then deduct this amount from your salary to work out your taxable income.
The income tax percentage rate is applied after any tax free allowances have been taken into account and is not applicable on any non taxable income.
Income tax bands and rates 2018/2019
|Taxable income (England, Wales & Northern Ireland)||Rate of tax|
|£0 – £11,850||0%|
|£11,851 – £46,350||20% (basic rate)|
|£46,351 – £150,000||40% (higher rate)|
|Over £150,000||45% (additional rate|
The income tax rates are produced by the tax office and usually announced in the Budget and normally change each tax year.
Scottish Income tax bands and Rates 2018/2019
From 2017/18 tax year, the Scottish Parliament will decide the income tax rates in Scotland. If you live in Scotland you will pay income tax as set out by the Scottish Parliament and will pay tax to the Scottish Government.
|income Band (Scotland)||Rate of tax|
|£0 – £11,850||0%|
|£11,850 – £13,850||19% (starter)|
|£13,850 – £24,000||20% (basic rate)|
|£24,000 – £44,273||21% (intermediate rate)|
|£44,273 – £150,000||41% (higher rate)|
|Over £150,000||46% (additional rate)|
Basic rate tax
In England, Wales and Northern Ireland tax is payable at the basic rate of 20 per cent on taxable income up to £45,000. In Scotland tax is payable at the basic rate of 20 percent on taxable income up to £43,000.
Higher rate tax
If you live in England, Wales or Northern Ireland and you have taxable income of more than £45,001, you will have to pay the higher rate of 40 per cent tax on the amount above £45,001 up to £150,000. If you live in Scotland you will have to pay the higher rate of 40 per cent tax on the amount above £43,001 up to £150,000.
Additional rate tax
If you have taxable income of more than £150,001, you will have to pay the additional rate of 45 per cent tax on the amount above this level.
Personal Savings Allowance
From 6 April 2018, most people can earn some income from the savings without paying tax. If you’re a basic rate taxpayer you can earn up to £1,000 in savings tax-free. Higher rate taxpayers will be able to earn up to £500. This is called the Personal Savings Allowance.
Income tax bands and rates for previous tax years
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