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Why is this important?
Income tax rates
This information applies to England, Wales, Scotland and Northern Ireland
- Using this information
- Income tax: taxable bands and rates 2013/2014
- Income tax: taxable bands and rates for previous years
- Dividends
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 six 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 all 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.
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 2013/2014
| Taxable income | rate 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) |
Basic rate
Tax is payable at the basic rate of 20 per cent on taxable income up to £32,010.
Higher rate
If you have taxable income of more than £32,010 but less than £150,000, you will have to pay a higher rate of 40 per cent tax on the amount above £32,010 and below £150,000.
Additional rate
If you have more than £150,000 you will have to pay an 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.
The starting rate for savings
Note if you are on a low income, some or all of the income from your savings will be taxable at 10 per cent. This is called the starting rate for savings. Low income means if your income is less than your personal allowance plus £2,790 for the tax year 2013/14 (£2,710 for the tax year 2012/13).
The starting rate for savings does not apply if your taxable income (after allowances are taken off) is more than £2,790 for the tax year 2013/14 (£2,710 for the tax year 2012/13).
You can find more information about how savings income is taxed on the Low Incomes Tax Return Group website at: www.litrg.org.uk.
Income tax: taxable bands and rates for previous years
Tax year 2012/2013
| Taxable income | rate 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 income | rate 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) |
Tax year 2010/2011
| Taxable income | rate of tax |
|---|---|
| 0 - £2,440 | 10 per cent (starting rate for savings only) |
| 0 - £37,400 | 20 per cent (basic rate) |
| £37,401 - £150,000 | 40 per cent (higher rate) |
| Over £150,000 | 50 per cent (additional rate) |
Tax year 2009/2010
| Taxable income | rate of tax |
|---|---|
| 0 - £2,440 | 10 per cent (starting rate for savings) |
| 0 - £37,400 | 20 per cent (basic rate) |
| Over £37,400 | 40 per cent (higher rate) |
Tax year 2008/2009
| Taxable income | rate of tax |
|---|---|
| 0 - £2,320 | 10 per cent (starting rate for savings) |
| 0 - £34,800 | 20 per cent (basic rate) |
| Over £34,800 | 40 per cent (higher rate) |
From 6 April 2008, the starting rate of 10 per cent was abolished for non-savings income.
Tax year 2007/2008
| Taxable income | rate of tax |
|---|---|
| 0 - £2,230 | 10 per cent |
| £2,231 - £34,600 | 22 per cent |
| Over £34,600 | 40 per cent |
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 this on the GOV.UK website at www.gov.uk.