UK income tax rates 2023-24 and 2024-25

What is income tax?

Income tax is paid on money you earn – that could be from employment, being self-employed, receiving a pension, or other forms of income, such as letting a property. 

Your taxable income is the amount you earn above the personal allowance (£12,570 2023-24 and 2024-25) and any other tax-free allowances you are eligible for.

You may also be charged income tax on fringe benefits you receive as an employee, such as a company car or private health insurance. 

Which? tax calculator

Our jargon-free tool can help you tot up your tax bill and send your tax return directly to HMRC.

Calculate your tax bill

Income tax in England, Wales and Northern Ireland

If you live in England, Wales or Northern Ireland there are three income tax bands and rates above the tax-free personal allowance; the basic rate (20%), the higher rate (40%), and the additional rate (45%).

The rate you pay depends on the portion of your taxable income that fits into the tax bands.

Here are the current tax bands, rates and thresholds for England, Wales, and Northern Ireland for the tax year 2023-24 and 2024-25:

Income tax in Wales has been devolved to the Welsh government since 6 April 2019, but taxpayers living in Wales currently pay the same tax rates as those in England and Northern Ireland.

HMRC still collects income tax in Wales, but the government in Westminster no longer receives all of it. The basic, higher and additional rates of income tax have been reduced by 10p by the UK government - and that 10p and any additional payments, go to the Welsh government.

Income tax in Scotland

Scottish income tax rates are different from the rest of the UK.

If you live in Scotland, there are six income tax bands and thresholds; the starter rate (19%), the Scottish basic rate (20%), the intermediate rate (21%), the higher rate (42%), advanced rate (45%) and the top rate (47%). The advanced rate is a new tax band and only applies to 2024-25. 

Here's what the income tax rates and bands in Scotland are for 2023-24 and the 2024-25:

It's important to note that Scottish income tax rates do not apply to savings and dividend income. Instead, Scottish taxpayers pay income tax on their savings and dividends income at the same rates that apply in the rest of the UK.

• Find out more: tax on savings interest and investment income explained 

Which income tax rate do I pay?

The rate of income tax paid is dependent on where your main home is. This is defined as where you spend most of your time.

So if your main home is in Scotland, you will pay the Scottish rate of income tax. If you move home, either to or from Scotland, you will pay the Scottish rate if you live in Scotland for more than half of the year.

If you have multiple properties the tax you pay is dependent on your main home, where you live, and where spend most of your time.

There are instances where your main home could still be where you spend less time, if:

• that's where your family lives if you are married or in a civil partnership;
• that's where most of your property is;
• that's the place where you've registered for things such as your GP, car insurance, or your bank account.

Find out more: how to calculate your tax bill

UK income tax calculator 

Wherever you live in the UK,  you can find out how much income tax you'll pay using our calculator. 

If you live in Scotland, simply flip the tab and select the tax year you'd like to calculate. As income tax rates in Wales are currently the same as in England and Northern Ireland, you don't need to make any extra country selections.

How does National Insurance work?

Income tax is just one part of what affects your take-home pay, as most workers also have to make National Insurance Contributions (NICs).

NICs are based on earnings from the age of 16 and usually stop when you reach state pension age.

• Find out more: National Insurance rates and contributions 

How do I pay income tax?

The income you receive from an employer is usually taxed through Pay As You Earn (PAYE) before you receive your salary, so you do not need to do anything. Your tax code will begin with an S if you live in Scotland, or C if you live in Wales.

If you’re self-employed or receive untaxed income from renting a property or a salary from more than one employer, you must submit a self-assessment tax return to pay income tax. There will be a box on the form that you can select to indicate that you pay the Scottish rate or the Welsh rate.

• Find out more: how to fill in a self-assessment tax return 

How am I taxed if I work abroad?

UK residents who have their permanent home (domicile) outside the UK may not have to pay tax on foreign income. 

To be classed as a non-resident and exempt from UK tax, you will need to work full-time overseas over the tax year and not spend more than a certain length of time in the UK. The exact rules can be checked on the government's website here.

What happens to my National Insurance?

If you're working abroad and plan to return to the UK at some point, you may choose to make voluntary National Insurance payments in the UK so you remain entitled to the associated benefits, such as the state pension.

What happens to my student loan?

If you are no longer within the UK tax system, the Student Loans Company (SLC) takes over collecting your loan repayments from HMRC.

If you go overseas for more than three months and had previously been repaying your student loan, you should let SLC know.

What is a 'double taxation treaty?'

If you're taxed on your overseas income both in the UK and in the country where the income was earned, you can usually claim tax relief to ensure you're not taxed on the same income twice.

How much tax you'll get back, and how to claim it, depends on the double taxation agreement between the UK and your country of residence. The UK has a double taxation agreement with hundreds of other countries.

For most double taxation agreements, you will need to use form DT-individual, available on gov.uk, to get tax relief in the UK.