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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.

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Income tax: taxable bands and rates 2014/2015

Taxable incomeRate of tax
0 - £2,88010 per cent (starting rate for savings only)
0 - £31,86520 per cent (basic rate)
£31,866 - £150,00040 per cent (higher rate)
Over £150,00045 per cent (additional rate)

Basic rate

Tax is payable at the basic rate of 20 per cent on taxable income up to £31,865.

Higher rate

If you have taxable income of more than £31,865, you will have to pay the higher rate of 40 per cent tax on the amount above £31,865 up to £150,000.

Additional rate

If you have taxable income of more than £150,000, 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.

The starting rate for savings

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 £2,880 for the tax year 2014/15 (£2,790 for the tax year 2013/14).

The starting rate for savings does not apply if your taxable income (after allowances are taken off) is more than £2,880 for the tax year 2014/15 (£2,790 for the tax year 2013/14).

You can find more information about how savings income is taxed on the Low Incomes Tax Reform Group website at: www.litrg.org.uk.

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Income tax: taxable bands and rates for previous years

Tax year 2013/2014

Taxable incomeRate of tax
0 - £2,79010 per cent (starting rate for savings only)
0 - £32,01020 per cent (basic rate)
£32,011 - £150,00040 per cent (higher rate)
Over £150,00045 per cent (additional rate)

Tax year 2012/2013

Taxable incomeRate of tax
0 - £2,71010 per cent (starting rate for savings only)
0 - £34,37020 per cent (basic rate)
£34,371 - £150,00040 per cent (higher rate)
Over £150,00050 per cent (additional rate)

Tax year 2011/2012

Taxable incomeRate of tax
0 - £2,56010 per cent (starting rate for savings only)
0 - £35,00020 per cent (basic rate)
£35,001 - £150,00040 per cent (higher rate)
Over £150,00050 per cent (additional rate)

Tax year 2010/2011

Taxable incomeRate of tax
0 - £2,44010 per cent (starting rate for savings only)
0 - £37,40020 per cent (basic rate)
£37,401 - £150,00040 per cent (higher rate)
Over £150,00050 per cent (additional rate)

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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.

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