Everyone gets to earn a certain amount tax-free each year — here's how it works and when it shrinks.
For 2025/26, the Personal Allowance is £12,570 — the amount you can earn before paying any Income Tax. It applies across England, Wales, Northern Ireland, and Scotland equally (only the bands above it differ for Scotland).
| Income | Personal Allowance |
|---|---|
| Up to £100,000 | Full £12,570 |
| £100,000 – £125,140 | Reduces by £1 for every £2 earned |
| Above £125,140 | £0 — fully lost |
This creates a notorious "60% tax trap" in the £100,000–£125,140 band, where the combination of losing your allowance and paying 40% tax on the income itself creates an effective marginal rate of 60%.
See your allowance and tax together.
Use the Income Tax Calculator →Allowance figures can change each Budget. Verify current figures with HMRC.