UK Tax Thresholds for 2025/26: What's Changed.
A quick guide to the Income Tax bands, National Insurance, and allowances that apply for the 2025/26 tax year in the UK.
1 May 2026
The 2025/26 UK tax year brings a familiar set of thresholds, most of which remain frozen until 2028. Here's what you need to know to plan your take-home pay, side income, and savings.
Income Tax bands (England, Wales & NI)
- Personal Allowance: £12,570 (unchanged)
- Basic rate (20%): £12,571 – £50,270
- Higher rate (40%): £50,271 – £125,140
- Additional rate (45%): above £125,140
The Personal Allowance tapers by £1 for every £2 you earn above £100,000, vanishing entirely at £125,140.
National Insurance
Class 1 employee NI is 8% on earnings between £12,570 and £50,270, then 2% above. Self-employed Class 4 NI is 6% and 2% at the same thresholds, with Class 2 abolished for most sole traders.
Dividend & savings allowances
- Dividend Allowance: £500
- Personal Savings Allowance: £1,000 (basic rate), £500 (higher rate), £0 (additional rate)
- ISA allowance: £20,000
What to do next
Run your numbers through the Salary Calculator UK and, if you're self-employed, the Self-Employed Tax Calculator UK to see exactly how the frozen thresholds affect you this year.
