What tax rates apply to me?
Income tax is payable on taxable income. There are a few different rates of income tax; the rate or rates you pay depend on the amount of your income and its nature and where you are resident in the UK. The rates are progressive – the more taxable income you have, the higher the amount of income tax you pay.
Under the UK tax system, generally your ‘earnings’ or ‘non-savings’ income is treated as being taxed first, then your savings income and then your dividends, if you have any. Your employment income, along with any pension income, taxable state benefits, profits from self-employment or rental income are together known as ‘earnings’ or ‘non-savings’ income.
You can find the current and recent years’ tax rates and bands in the ‘useful links section’ of this website. If you live in Scotland and are a Scottish taxpayer, different income tax rates and bands apply to your non-savings and non-dividend income. There is more information in our section on Scottish income tax. UK rates and bands apply to your savings and dividend income.
What tax rates apply to my earnings or non-savings income?
You pay income tax on your taxable earnings that exceed your tax allowances.
For most people, their only ‘earnings’ income will be their employment income. For more information on taxable employment income, you should look at the page ‘what income is taxable?’. In general employment income includes all the monetary earnings you get from your job, and may also include some non-cash benefits your employer gives you – see ‘what are benefits in kind?’.
You are allowed to deduct any allowable expenses that you have incurred in the course of your employment in arriving at your taxable employment income. That might include certain travel expenses and the expenses of using your own car for business purposes.
We explain the tax rates that apply to your taxable employment income in the ‘tax basics’ section of this website.
Where can I find more information and examples?
If you want more information about what tax rates apply to all your income and examples, go to our page in the ‘tax basics section’.
If you want more information about tax for pensioners, go to our ‘pensioners section’.
If you want to see the different tax rates and bands, go to our ‘tax and NIC rates’ page.
If you want more information about tax rates in Scotland, go to our ‘What is Scottish income tax’ page.
The GOV.UK website also has tables showing rates and allowances for UK taxpayers who are not resident in Scotland.