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What tax rates apply to me?

Updated on 4 April 2023

Employment

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, the type of your income 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.

Illustration of the word taxes with question marks around it

Under the UK tax system, generally your ‘earnings’ or ‘non-savings’ income is treated as being taxed first, then any savings income and finally, any dividend income. Your taxable employment income, along with any pension income, taxable state benefits, profits from self-employment or rental income make up your ‘earnings’ or ‘non-savings’ income (from now we will just call this ‘earnings’ income).

What tax rates apply to my earnings income?

You pay income tax on any taxable earnings income that exceeds your tax allowances.

For most people in employment, their only earnings income will be their taxable employment income, including non-cash benefits-in-kind. For more information on what counts as taxable employment income, you should look at the page What income is taxable?.

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, for example.

We explain the tax rates that apply to your taxable employment income in the tax basics section.

If you live in Scotland and are a Scottish taxpayer, you will pay Scottish income tax on your employment income. Different income tax rates and bands apply to your non-savings and non-dividend income. There is more information in our pages on Scottish income tax. UK tax rates and bands apply to your savings and dividend income.

If you live in Wales and are a Welsh taxpayer, you will pay Welsh income tax on your employment income. The rates for Welsh income tax apply to your non-savings and non-dividend income. UK tax rates apply to your savings and dividend income.

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 to see the different tax rates and bands, go to our Tax and NIC rates page.

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?
Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

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