UK Income Tax Rates 1980 to Present: Rates, Bands and Allowances by Year

In 1980-81 the basic rate was 30%, and higher rates went up in steps to a top rate of 60%. By 1988-89 there were only two rates, 25% and 40%. In 2026-27 the basic rate is 20%, the higher rate 40% and the additional rate 45%, and the personal allowance is £12,570, compared with £1,375 in 1980-81.

The table below is taken from HMRC's published statistics: Table A.2, Rates of Income Tax and Table A.1, Personal Allowances and Reliefs, which cover 1990-91 onwards. Earlier years come from the Finance Acts 1980 to 1990 and the Treasury's income tax indexation orders for those years.

How to read the table

• Bands are of taxable income. They apply after allowances are deducted;
• Personal allowance before 1990. This is the single person's allowance. Before 1990-91, married men received a larger married allowance instead;
• Higher rates before 1988. There were five bands, from 40% to 60%. The table shows where the first and last of them started;
• Blank cells. No such rate existed that year;
• Rates shown. These are the main rates in England, Wales and Northern Ireland. Savings and dividend income have often had different rates, and Scottish rates and bands have differed since 2017-18.

UK income tax rates and allowances, 1980-81 to 2026-27

Tax year	Personal allowance (£)	Lower or starting rate	Basic rate and band (£)	Higher rate	Additional rate
1980-81	1,375		30% to 11,250	40% from 11,250; 60% over 27,750
1981-82	1,375		30% to 11,250	40% from 11,250; 60% over 27,750
1982-83	1,565		30% to 12,800	40% from 12,800; 60% over 31,500
1983-84	1,785		30% to 14,600	40% from 14,600; 60% over 36,000
1984-85	2,005		30% to 15,400	40% from 15,400; 60% over 38,100
1985-86	2,205		30% to 16,200	40% from 16,200; 60% over 40,200
1986-87	2,335		29% to 17,200	40% from 17,200; 60% over 41,200
1987-88	2,425		27% to 17,900	40% from 17,900; 60% over 41,200
1988-89	2,605		25% to 19,300	40% over 19,300
1989-90	2,785		25% to 20,700	40% over 20,700
1990-91	3,005		25% to 20,700	40% over 20,700
1991-92	3,295		25% to 23,700	40% over 23,700
1992-93	3,445	20% to 2,000	25% to 23,700	40% over 23,700
1993-94	3,445	20% to 2,500	25% to 23,700	40% over 23,700
1994-95	3,445	20% to 3,000	25% to 23,700	40% over 23,700
1995-96	3,525	20% to 3,200	25% to 24,300	40% over 24,300
1996-97	3,765	20% to 3,900	24% to 25,500	40% over 25,500
1997-98	4,045	20% to 4,100	23% to 26,100	40% over 26,100
1998-99	4,195	20% to 4,300	23% to 27,100	40% over 27,100
1999-00	4,335	10% to 1,500	23% to 28,000	40% over 28,000
2000-01	4,385	10% to 1,520	22% to 28,400	40% over 28,400
2001-02	4,535	10% to 1,880	22% to 29,400	40% over 29,400
2002-03	4,615	10% to 1,920	22% to 29,900	40% over 29,900
2003-04	4,615	10% to 1,960	22% to 30,500	40% over 30,500
2004-05	4,745	10% to 2,020	22% to 31,400	40% over 31,400
2005-06	4,895	10% to 2,090	22% to 32,400	40% over 32,400
2006-07	5,035	10% to 2,150	22% to 33,300	40% over 33,300
2007-08	5,225	10% to 2,230	22% to 34,600	40% over 34,600
2008-09	6,035	Savings only	20% to 34,800	40% over 34,800
2009-10	6,475	Savings only	20% to 37,400	40% over 37,400
2010-11	6,475	Savings only	20% to 37,400	40% to 150,000	50% over 150,000
2011-12	7,475	Savings only	20% to 35,000	40% to 150,000	50% over 150,000
2012-13	8,105	Savings only	20% to 34,370	40% to 150,000	50% over 150,000
2013-14	9,440	Savings only	20% to 32,010	40% to 150,000	45% over 150,000
2014-15	10,000	Savings only	20% to 31,865	40% to 150,000	45% over 150,000
2015-16	10,600	Savings only	20% to 31,785	40% to 150,000	45% over 150,000
2016-17	11,000	Savings only	20% to 32,000	40% to 150,000	45% over 150,000
2017-18	11,500	Savings only	20% to 33,500	40% to 150,000	45% over 150,000
2018-19	11,850	Savings only	20% to 34,500	40% to 150,000	45% over 150,000
2019-20	12,500	Savings only	20% to 37,500	40% to 150,000	45% over 150,000
2020-21	12,500	Savings only	20% to 37,500	40% to 150,000	45% over 150,000
2021-22	12,570	Savings only	20% to 37,700	40% to 150,000	45% over 150,000
2022-23	12,570	Savings only	20% to 37,700	40% to 150,000	45% over 150,000
2023-24	12,570	Savings only	20% to 37,700	40% to 125,140	45% over 125,140
2024-25	12,570	Savings only	20% to 37,700	40% to 125,140	45% over 125,140
2025-26	12,570	Savings only	20% to 37,700	40% to 125,140	45% over 125,140
2026-27	12,570	Savings only	20% to 37,700	40% to 125,140	45% over 125,140

The main changes since 1980

Fewer rates. The basic rate fell from 30% to 29% in 1986-87 and to 27% in 1987-88. In 1988-89 the five higher rates were replaced by a single 40% rate, which has not changed since, and the basic rate became 25%.

A falling basic rate. A 20% lower rate began in 1992-93. The basic rate fell to 24% in 1996-97, 23% in 1997-98 and 22% in 2000-01. A 10% starting rate replaced the lower rate in 1999-00. In 2008-09 the starting rate was abolished except for savings, and the basic rate became 20%.

An additional rate. A 50% rate on taxable income over £150,000 started in 2010-11. It was cut to 45% in 2013-14, and its threshold was lowered to £125,140 in 2023-24. Since 2010-11 the personal allowance has been withdrawn at £1 for every £2 of income over £100,000, and it has been frozen at £12,570 since 2021-22.

Worked example: where higher rate started

For a single person in 1980-81, higher rate began at a gross income of £12,625: the £1,375 allowance plus the £11,250 basic rate band. In 2026-27 it begins at £50,270: £12,570 plus £37,700. To see what you pay at current rates, use our income tax calculator.

What comes next

The rates and allowances annex published with Budget 2026 keeps the main rates, bands and £12,570 allowance unchanged for 2027-28. Property income is to have its own rates for the first time, and savings rates are to rise. From 6 April 2027 both are due to be taxed at 24%, 44% and 49%, subject to Finance Bill 2026-27; until then, property income is taxed at the main rates. Our Budget 2026 summary covers the other changes. Our guide to Scottish income tax bands covers the separate Scottish rates.

If you need past years' rates for an amended return or an HMRC enquiry, our income tax returns team can do the calculation. For planning around the frozen thresholds, talk to our private client tax advisers.