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Income tax rates

Using this information

The tables in this information show the percentage rates of income tax that are applied to taxable income in the current and past four tax years.

For more information about how to calculate your tax, see Income tax.

Your taxable income is not the same as your total income. This is because most taxpayers are allowed a certain amount of tax-free income (called a personal allowance). Some people may also get other allowances and tax reliefs. You may also have some income that is not taxable. To work out your taxable income, add up your income from all sources, then take away your personal allowance, any non-taxable income and any other allowances and reliefs.

When using the figures in the taxable income columns in the tables on this page, remember that they refer to your taxable income and not to your total income.

For more information about income that is not taxable, see Taxable and non-taxable income, for details of tax reliefs, see Tax reliefs, and for details of allowances, see Income tax allowances and amounts.

A tax year runs from 6 April one year to 5 April the following year.

The percentage rates or bands of taxable income may change for each tax year.

Income tax: taxable bands and rates 2016/2017

Taxable incomeRate of tax
0 - £5,000 10 per cent (starting rate for savings only)
0 - £32,000 20 per cent (basic rate)
£32,001 - £150,000 40 per cent (higher rate)
Over £150,000 45 per cent (additional rate)

Basic rate

Tax is payable at the basic rate of 20 per cent on taxable income up to £32,000.

Higher rate

If you have taxable income of more than £32,001, you will have to pay the higher rate of 40 per cent tax on the amount above £32,001 up to £150,000.

Additional rate

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.

To calculate the tax payable

To find out how to calculate the amount of tax payable, see Income tax.

Personal savings allowance

From 6 April 2016, 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.

If your total taxable income is £17,000 or less you won’t pay any tax on your savings income.

Income tax: taxable bands and rates for previous years

Tax year 2015/2016

Taxable incomeRate of tax
0 - £5,000 0 per cent (starting rate for savings only)
0 - £31,785 20 per cent (basic rate)
£31,786 - £150,000 40 per cent (higher rate)
Over £150,000 45 per cent (additional rate)

Tax year 2014/2015

Taxable incomeRate of tax
0 - £2,880 10 per cent (starting rate for savings only)
0 - £31,865 20 per cent (basic rate)
£31,866 - £150,000 40 per cent (higher rate)
Over £150,000 45 per cent (additional rate)

Tax year 2013/2014

Taxable incomeRate of tax
0 - £2,790 10 per cent (starting rate for savings only)
0 - £32,010 20 per cent (basic rate)
£32,011 - £150,000 40 per cent (higher rate)
Over £150,000 45 per cent (additional rate)

Tax year 2012/2013

Taxable incomeRate of tax
0 - £2,710 10 per cent (starting rate for savings only)
0 - £34,370 20 per cent (basic rate)
£34,371 - £150,000 40 per cent (higher rate)
Over £150,000 50 per cent (additional rate)

Tax year 2011/2012

Taxable incomeRate of tax
0 - £2,560 10 per cent (starting rate for savings only)
0 - £35,000 20 per cent (basic rate)
£35,001 - £150,000 40 per cent (higher rate)
Over £150,000 50 per cent (additional rate)

Dividends

If you receive income from UK company shares or distributions from unit trusts (but not interest), this is taxed at different rates from other income. You can find more information about dividends on the GOV.UK website.