What are the UK income tax brackets? - UK income tax ladder

Date: May 9th, 2021

Tags: Highest Tax Bracket in the UK Tax Brackets for 2020 Income Tax UK Calculator National Insurance UK

The highest tax bracket in the UK ( England, Wales and Northern Ireland ) is 45%. If you earn more than 150,000 then you will need to pay 45% income tax. If you live in Scotland, You will have to pay 46% of income tax rate if your earnings are above 150,000.

Below are the Income tax bands and rates for England, Wales and Northern Ireland.
Band Taxable Tax Rate
Personal Allowance Up to 12,500 0 %
Basic Rate 12,501 - 50,000 20 %
Higher Rate 50,001- 150,000 40 %
Additinal Rate above 150,000 45 %

How much should you earn before you pay tax?. Personal Allowance up to 12,500 is 0%. If you fall in the same tax bracket, You need not pay any tax. The more you earn the more income tax you will have to pay. Next, you will have to pay national insurance on your salary. Calculate your income tax here ( Weekly, Monthly and Yearly ).

For Scotland, The income tax rates are different. These are the income tax brackets in Scotland.
Band Taxable Tax Rate
Personal Allowance Up to 12,500 0 %
Starter Rate Above 12,500 - 14,549 19 %
Basic Rate Above 14,549 - 24,944 20 %
Intermediate Rate Above 24,944 - 43,430 21 %
Higher Rate Above 43,430 - 150,000 41 %
Top Rate Above 150,000 46 %

Income tax thresholds are listed above. Up to 12,500, you will have to pay 0% income tax. Income tax ladder increases as you earn more. You can calculate your take home pay using this calculator ( Weekly, Monthly and Yearly )

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