What tax rates apply to me?

Updated on 9 September 2020


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.

Jigsaw pieces displaying the words tax rate (c) Shutterstock / kenary820

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 the 2019/20 and 2020/21 tax years there is no practical difference in the amount of tax you will actually 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.

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