UK Income Tax Rates 2024/25: Complete Guide

## Income Tax in the UK for 2024/25 The UK income tax system for the 2024/25 tax year (6 April 2024 to 5 April 2025) continues to use a progressive structure where higher earners pay higher rates on their income above certain thresholds. ### Personal Allowance The Personal Allowance remains frozen at **£12,570** for 2024/25. This is the amount you can earn before paying any income tax. **Important:** Your Personal Allowance is reduced by £1 for every £2 of income above £100,000, meaning it reaches zero when your income hits £125,140. ### Tax Bands and Rates | Band | Taxable Income | Rate | |------|---------------|------| | Personal Allowance | £0 - £12,570 | 0% | | Basic Rate | £12,571 - £50,270 | 20% | | Higher Rate | £50,271 - £125,140 | 40% | | Additional Rate | Over £125,140 | 45% | ### Key Changes for 2024/25 1. **Thresholds remain frozen** - The government has continued the freeze on income tax thresholds until 2028, meaning more people will be pulled into higher tax bands through "fiscal drag" 2. **National Insurance reduction** - While not income tax, the NI rate reduction from 10% to 8% means more take-home pay for employees 3. **Dividend allowance cut** - Reduced from £1,000 to £500, affecting those with investment income ### Example Calculations **Salary of £35,000:** - Personal Allowance: £12,570 at 0% = £0 - Basic Rate: £22,430 at 20% = £4,486 - **Total Income Tax: £4,486** **Salary of £60,000:** - Personal Allowance: £12,570 at 0% = £0 - Basic Rate: £37,700 at 20% = £7,540 - Higher Rate: £9,730 at 40% = £3,892 - **Total Income Tax: £11,432** ### Tax-Efficient Strategies 1. **Pension contributions** - Reduce your taxable income and get tax relief 2. **ISAs** - Interest and gains are tax-free 3. **Salary sacrifice** - For pensions or benefits to reduce taxable income 4. **Marriage allowance** - Transfer £1,260 to a basic rate taxpayer spouse ### Using Our Calculator Our [Take-Home Pay Calculator](/calculators/take-home-pay) automatically applies all 2024/25 rates to show you exactly what you'll receive after tax and National Insurance.