UK Income Tax 2025/26: Bands, Allowances & Take-Home
2026-02-10
The UK uses a progressive income-tax scale layered with National Insurance (NI), and — unlike most of Europe — a relatively small employee social contribution on top. Here's the 2025/26 picture for England, Wales, and Northern Ireland (Scottish rates differ).
Income tax bands 2025/26
| Band | Rate | Applies to income |
|---|---|---|
| Personal allowance | 0% | £0 – £12,570 |
| Basic rate | 20% | £12,571 – £50,270 |
| Higher rate | 40% | £50,271 – £125,140 |
| Additional rate | 45% | above £125,140 |
The personal allowance is withdrawn by £1 for every £2 earned above £100,000, disappearing entirely at £125,140.
National Insurance (employee)
- 8% on earnings between £12,570 and £50,270
- 2% above £50,270
NI is a flat contribution toward state pension and benefits — not progressive like income tax.
Worked example: £50,000 salary
- Taxable income: £50,000 − £12,570 = £37,430
- Income tax: £37,430 × 20% = £7,486
- NI: £37,430 × 8% = £2,994
- Approximate net pay: ~£39,520
Check it live with the UK Take-Home Pay calculator, which uses exact PAYE bands.
How the UK compares
At ~25% combined effective deduction for a median earner, the UK sits in the lower-middle of our Europe tax ranking — lower than Germany or Italy, similar to Ireland and Poland.
Estimate your own
Open the European Net Salary Estimator and pick United Kingdom, or read the full UK country page for VAT and allowance detail.
Figures use simplified 2025/26 rates for educational purposes, not official advice. Scottish taxpayers use different bands; always confirm with HMRC or a qualified advisor.