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This information applies to England, Wales, Scotland and Northern Ireland
Using this information
The tables in this information show the percentage rates of income tax in the current and past six tax years. The rest of the information explains how to calculate your 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) and some may be entitled to additional allowances. You may also have some income which is exempt from tax. When using the figures in the taxable income columns, remember that they refer to your taxable income and not to total income.
For more information about exempt income, see Tax-exempt and taxable income, and for details of tax allowances, see Income tax allowances.
The tables cover the tax years 2001/2002 to the present tax year.
A tax year runs from 6 April one year to 5 April the following year.
The percentage rates and/or bands of taxable income may change for each tax year. Details of any changes are announced in the budget and apply from the beginning of the tax year.
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Income tax: taxable bands and rates 2008/2009
Taxable income |
rate of tax |
0 - £34,800* |
20% (basic rate) |
Over £34,800* |
40% (higher rate) |
Note if you are on a low income (if your earnings are less than your personal allowance plus £2320), some or all of the income from your savings will be taxable at 10%.
*The basic rate threshold has been changed from £36,000 (the figure previously announced in the budget) to £34,800 (the figure in the table above). However, the changes will not be implemented until September 2008 and will then be backdated to 6 April 2008.
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Income tax: taxable bands and rates for previous years
Tax year 2007/2008
Taxable income |
rate of tax |
0 - £2,230 |
10% |
£2,231- £34,600 |
22% |
Over £34,600 |
40% |
Tax year 2006/2007
Taxable income |
rate of tax |
0 - £2,150 |
10% |
£2,151 - £33,300 |
22% |
Over £33,300 |
40% |
Tax year 2005/2006
Taxable income |
rate of tax |
0 - £2,090 |
10% |
£2,091 - £32,400 |
22% |
Over £32,400 |
40% |
Tax year 2004/2005
Taxable income |
rate of tax |
0 - £2,020 |
10% |
£2,021 - £31,400 |
22% |
Over £31,400 |
40% |
Tax year 2003/2004
Taxable income |
rate of tax |
0 - £1,960 |
10% |
£1,961 - £30,500 |
22% |
over £30,500 |
40% |
Tax year 2002/2003
Taxable income |
rate of tax |
0 - £1,920 |
10% |
£1,921 - £29,900 |
22% |
Over £29,900 |
40% |
From 6 April 2008, the starting rate of 10% is abolished for non-savings income. Tax is payable at the basic rate of 20% on taxable income up to £36,000. If you have more than £36,000 of taxable income, you will have to pay a higher rate of tax on the amount above this level. To calculate the tax payable, you should:
- work out the taxable income, after taking any allowances or tax reliefs into account (see under heading Using this information), then
- calculate tax on your taxable income up to the limit of £36,000 at 20%, then
- if you have taxable income over £36,000, calculate tax on the taxable income over £36,000 at 40%, then
- add the last two figures together. This is the amount of tax that is payable for 2008 -09.
(Example box starts)
For exampleYour taxable income is £11,000 after deducting your personal allowance from your total income. You have no taxable income above £36,000, so you pay tax at the basic rate of 20% on all your taxable income. 20% X £11,000 is £2,200.
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