Income Tax Rates across the UK

  • Income tax applies to the amount of income after deduction of personal allowances.
  • Income is taxed in a specific order with savings and dividend income taxed last.
  • Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
  • The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
  • The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
  • Income tax is devolved to Wales on non-savings and non-dividend income.

Income tax rates

Band of taxable incomeRateRate if dividends
£ %%
0 - 5,000Starting rate for savings0N/A
0 - 37,500Basic rate207.5
37,501 - 150,000Higher rate4032.5
Over 150,000Additional rate4538.1
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers1,0000 
Higher rate taxpayers5000 
Additional rate taxpayersNilN/A 
Dividend Allowance
for all taxpayers2,000 0
  • Income tax applies to the amount of income after deduction of personal allowances.
  • Income is taxed in a specific order with savings and dividend income taxed last.
  • Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
  • The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
  • The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
  • Income tax is devolved to Wales on non-savings and non-dividend income.

Income tax rates

Band of taxable incomeRateRate if dividends
£ %%
0 - 5,000Starting rate for savings0N/A
0 - 37,500Basic rate207.5
37,501 - 150,000Higher rate4032.5
Over 150,000Additional rate4538.1
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers1,0000 
Higher rate taxpayers5000 
Additional rate taxpayersNilN/A 
Dividend Allowance
for all taxpayers2,000 0
Band of taxable incomeRateRate if dividends
£ %%
 
0 - 5,000Starting rate for savings0N/A

0 - 37,500

Basic rate207.5
37,501 - 150,000Higher rate4032.5
Over 150,000Additional rate4538.1
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers1,0000 
Higher rate taxpayers5000 
Additional rate taxpayersNilN/A 
Dividend Allowance
for all taxpayers2,000 0