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.
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.