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What tax rates apply to me?

Updated on 6 April 2023

Pensioners

Under the UK tax system, generally your earnings and pensions, or non-savings income, is treated as being taxed first, then your savings income and then your dividends. This is important because your income, once ‘stacked up’ like this, falls into ‘bands’ in which different tax rates apply depending on the type of income.

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What tax rates apply to my pensions or non-savings income?

For more information on taxable pension income, you should look at the page What income is taxable?

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

We explain the rates that apply to your taxable pensions or non-savings income in the tax basics section.

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.

From 6 April 2019, a Welsh income tax applies to the non-savings and non-dividend income of Welsh taxpayers, but for tax years until at least 2023/24 there is no practical difference in the amount of tax you will pay. See What is Welsh income tax?.

Where can I find more information?

To see the different tax rates and bands for the current tax year and recent tax years, go to our Tax and NIC rates page.

For tax on savings income, go to our tax basics section and our other tax issues section.

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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