Tax Rates in United Kingdom

Everything you need to know about Tax rates in United Kingdom: this guide explains Goverment Tax, how it works, and the different rates that apply across United Kingdom.

Tax Rates in United Kingdom
Tax Rates in United Kingdom

Tax Rates in United Kingdom explained

The United Kingdom has a progressive tax system, which means that tax rates increase as your income increases. The current income tax rates for the 2019/20 tax year are:

  • 20% on the first £12,500 of taxable income (Personal Allowance)
  • 40% on taxable income between £12,501 and £50,000 (Basic Rate)
  • 45% on taxable income over £50,000 (Higher Rate)

There is also a Scottish Rate of Income Tax, which applies to taxpayers who live in Scotland. The rates and thresholds for the 2019/20 tax year are:

  • 20% on the first £2,049 of taxable income (Personal Allowance)
  • 21% on taxable income between £2,050 and £12,444 (Starter Rate)
  • 41% on taxable income between £12,445 and £30,930 (Basic Rate)
  • 46% on taxable income over £30,931 (Higher Rate)
  • 46% on taxable income over £150,000 (Additional Rate)

You may also be liable for the High Income Tax Charge if you are a higher earner. This is an additional tax of 2% that is charged on incomes over £150,000.

Several tax reliefs and allowances can reduce your tax bill, such as the Married Couples Allowance, the Blind Person’s Allowance, and the Tax-Free Childcare scheme.

You must pay tax on your worldwide income if you are a UK resident. Non-UK residents may only be liable for UK tax on their UK income.

Tax rates and thresholds can change each tax year, so staying up-to-date with the latest information is important. You can learn more about tax rates and allowances on the HM Revenue & Customs website.

How to Calculate Tax in United Kingdom?

To calculate income after tax in United Kingdom, you can use the income after Tax calculator UK.

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