1. Current rates and allowances

How much Income Tax you pay in each tax year depends on:

  • how much of your income is above your Personal Allowance
  • how much of this falls within each tax band

Some income is tax-free.

The current tax year is from 6 April 2016 to 5 April 2017.

Your tax-free Personal Allowance

The standard Personal Allowance is £11,000, which is the amount of income you don’t have to pay tax on.

Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000.

Income Tax rates and bands

The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £11,000.

Band Taxable income Tax rate
Personal Allowance Up to £11,000 0%
Basic rate £11,000 to £43,000 20%
Higher rate £43,001 to £150,000 40%
Additional rate over £150,000 45%

You can also see the rates and bands without the Personal Allowance. You don’t get a Personal Allowance on taxable income over £122,000.

If you’re employed or get a pension

You can sign in to your personal tax account to:

  • check your Personal Allowance
  • estimate the tax you’ll pay in the tax year

Savings and dividends allowances

You have tax-free allowances for both:

You pay tax on any interest or dividends over your allowance.

Paying less Income Tax

You may be able to claim Income Tax reliefs if you’re eligible for them.

If you’re married or in a civil partnership

You may be able to claim Marriage Allowance to reduce your partner’s tax if your income is less than the standard Personal Allowance.

If you don’t claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple’s Allowance.