The UK HMRC has issued guidance on employer rates and thresholds for the 2025-2026 tax year, covering the period from 6 April 2025 to 5 April 2026 on 31 January 2025.
This covers the PAYE tax rates and thresholds for 2025-2026 for England, Northern Ireland, Scotland, and Wales.
England and Northern Ireland
The standard employee personal allowance for the 2025 to 2026 tax year is:
- GBP 242 per week
- GBP 1,048 per month
- GBP 12,570 per year
PAYE tax rate | Rate of tax | Annual earnings the rate applies to (above the PAYE threshold) |
Basic tax rate | 20% | Up to GBP 37,700 |
Higher tax rate | 40% | From GBP 37,701 to GBP 125,140 |
Additional tax rate | 45% | Above GBP 125,140 |
Scotland
The standard employee personal allowance for the 2025 to 2026 tax year is:
- GBP 242 per week
- GBP 1,048 per month
- GBP 12,570 per year
PAYE tax rate | Rate of tax | Annual earnings the rate applies to
(above the PAYE threshold) |
Basic tax rate | 20% | Up to GBP37,700 |
Higher tax rate | 40% | From GBP 37,701 to GBP125,140 |
Additional tax rate | 45% | Above GBP 125,140 |
Wales
The standard employee personal allowance for the 2025 to 2026 tax year is:
- GBP242 per week
- GBP 1,048 per month
- GBP 12,570 per year
PAYE tax rate | Annual earnings the rate applies to
(above the PAYE threshold) |
Rate of tax |
Basic tax rate | 20% | Up to GBP 37,700 |
Higher tax rate | 40% | From GBP 37,701 to GBP 125,140 |
Additional tax rate | 45% | Above GBP 125,140 |