Guidance

Income Tax rates and allowances: current and past

Updated 6 April 2016

How much Income Tax someone pays in each tax year (from 6 April to the 5 April the following year) depends on:

Personal Allowances

The Personal Allowance is the amount of income a person can get before they pay tax.

Allowances 2016 to 2017 2015 to 2016 2014 to 2015 2013 to 2014
Personal Allowance for people born after 5 April 1948 £11,000 £10,600 £10,000 £9,440
Income limit for Personal Allowance £100,000 £100,000 £100,000 £100,000

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

Personal Allowances for people born before 6 April 1948

People born before 6 April 1948 may be entitled to a bigger Personal Allowance.

From 2015 to 2016, people born after 5 April 1938 get the standard Personal Allowance.

Allowances 2016 to 2017 2015 to 2016 2014 to 2015 2013 to 2014
Personal Allowance for people born between 6 April 1938 and 5 April 1948 £11,000 £10,600 £10,500 £10,500
Personal Allowance for people born before 6 April 1938 £11,000 £10,660 £10,660 £10,660
Income limit for Personal Allowance £27,700 £27,700 £27,000 £26,100

This Personal Allowance goes down by £1 for every £2 above the income limit. It won’t go below the standard Personal Allowance for that year. There’s more guidance about Personal Allowances for people born before 6 April 1948 and pre 6 April 1938.

Before 2013 to 2014

Before the 2013 to 2014 tax year, the bigger Personal Allowance was based on age instead of date of birth.

Allowances 2012 to 2013
Personal Allowance for people aged 65 to 74 £10,500
Personal Allowance for people aged 75 and over £10,660
Income limit for Personal Allowance £25,400

Other allowances

Allowances 2016 to 2017 2015 to 2016 2014 to 2015 2013 to 2014
Married Couple’s Allowance - maximum amount £8,355 £8,355 £8,165 £7,915
Married Couple’s Allowance - minimum amount £3,220 £3,220 £3,140 £3,040
Blind Person’s Allowance £2,290 £2,290 £2,230 £2,160

Tax rates and bands

Tax is paid on the amount of taxable income remaining after allowances have been deducted.

Band Rate Income after allowances
2016 to 2017
Income after allowances
2015 to 2016
Income after allowances
2014 to 2015
Income after allowances
2013 to 2014
Starting rate for savings 10% (0% from 2015 to 2016) Up to £5,000 Up to £5,000 Up to £2,880 Up to £2,790
Basic rate 20% Up to £32,000 Up to £31,785 Up to £31,865 Up to £32,010
Higher rate 40% £32,001 to £150,000 £31,786 to £150,000 £31,866 to £150,000 £32,011 to £150,000
Additional rate 45% Over £150,001 Over £150,001 Over £150,001 Over £150,001

Dividends

The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.

Band Dividend tax rates
Basic rate (and non-taxpayers) 10%
Higher rate 32.5%
Additional rate (from 6 April 2013) 37.5%
Additional rate (dividends paid before 6 April 2013) 42.5%

From 6 April 2016 there’s a new dividend allowance.

Historical and future rates

You can view Income Tax rates and allowances for previous tax years.

New tax bands and allowances are usually announced in the Chancellor of the Exchequer’s Budget or Autumn Statement.

National Insurance and other tax rates

There are different rates and allowances for:

You can view other tax rates and allowances.