Tax Rates
Impact of 2024/25 tax rates on net income
A comparison of the England tax rates for the 2023/24 to 2024/25 tax year. Main change is the drop of Employee National Insurance from 10% to 8%. Adjustment for inflation is based on 4% CPI in Jan'24 (source: ONS).
(There is no difference in tax rates between Wales and England)
| Income | 2023/24 Net | Tax % | 2024/25 Net | Tax % | Difference | Inflation adj. % | Inflation adj. |
|---|---|---|---|---|---|---|---|
| £10,000 | £10,000.00 | 0.0% | £10,000.00 | 0.0% | £0.00 | -3.85% | -£384.62 |
| £20,000 | £17,659.55 | 11.7% | £17,919.60 | 10.4% | £260.05 | -2.39% | -£429.17 |
| £30,000 | £24,509.55 | 18.3% | £25,119.60 | 16.3% | £610.05 | -1.42% | -£356.09 |
| £40,000 | £31,359.55 | 21.6% | £32,319.60 | 19.2% | £960.05 | -0.88% | -£283.01 |
| £50,000 | £38,209.55 | 23.6% | £39,519.60 | 21.0% | £1,310.05 | -0.53% | -£209.93 |
| £75,000 | £52,737.90 | 29.7% | £54,057.40 | 27.9% | £1,319.50 | -1.41% | -£759.63 |
| £100,000 | £67,237.90 | 32.8% | £68,557.40 | 31.4% | £1,319.50 | -1.92% | -£1,317.32 |
| £125,000 | £76,737.90 | 38.6% | £78,057.40 | 37.6% | £1,319.50 | -2.16% | -£1,682.71 |
| £150,000 | £89,966.90 | 40.0% | £91,286.40 | 39.1% | £1,319.50 | -2.40% | -£2,191.52 |
| £200,000 | £116,466.90 | 41.8% | £117,786.40 | 41.1% | £1,319.50 | -2.73% | -£3,210.75 |
| £250,000 | £142,966.90 | 42.8% | £144,286.40 | 42.3% | £1,319.50 | -2.93% | -£4,229.98 |
| £500,000 | £275,466.90 | 44.9% | £276,786.40 | 44.6% | £1,319.50 | -3.37% | -£9,326.13 |
| £1,000,000 | £540,466.90 | 46.0% | £541,786.40 | 45.8% | £1,319.50 | -3.60% | -£19,518.44 |
Note that the 2023/24 employee National Insurance uses a blended rate of 11.5% to account for the 2% decrease in January 2024. The comparison consequently is between 11.5% (blended) and 8% NI rate.
Check your personal tax rate and impact with our calculator.
Tax Rates 2023/24 and 2024/25 side by side
The tax rate by country and tax year. For 2024/25 tax year only the rumoured tax rates are presented until final rates are confirmed.
| England 2023/24 | Wales 2023/24 | England 2024/25 | Wales 2024/25 | |
|---|---|---|---|---|
| Personal Allowance Threshold | £100,000.00 | £100,000.00 | £100,000.00 | £100,000.00 |
| Personal Allowance | £12,570.00 | £12,570.00 | £12,570.00 | £12,570.00 |
| Basic Rate Income | £37,700.00 | £37,700.00 | £37,700.00 | £37,700.00 |
| Higher Rate Income | £125,140.00 | £125,140.00 | £125,140.00 | £125,140.00 |
| Basic Rate Tax | 20% | 20% | 20% | 20% |
| Higher Rate Tax | 40% | 40% | 40% | 40% |
| Additional Rate Tax | 45% | 45% | 45% | 45% |
| Employer NI Rate | 13.8% | 13.8% | 13.8% | 13.8% |
| Primary NI Threshold | £12,570.00 | £12,570.00 | £12,570.00 | £12,570.00 |
| Secondary NI Threshold | £9,100.00 | £9,100.00 | £9,100.00 | £9,100.00 |
| Upper Earnings Limit | £50,270.00 | £50,270.00 | £50,270.00 | £50,270.00 |
| Employee NI Rate | 11.5% (Change from 12% to 10% from Jan 2024. Using a blended rate of 11.5% for now.) | 11.5% (Change from 12% to 10% from Jan 2024. Using a blended rate of 11.5% for now.) | 8% (Change from 10% to 8%.) | 8% (Change from 10% to 8%.) |
| Employee Upper Earning Rate | 2% | 2% | 2% | 2% |
| Dividend Allowance | £1,000.00 | £1,000.00 | £1,000.00 | £1,000.00 |
| Basic Rate Dividend Tax | 8.75% | 8.75% | 8.75% | 8.75% |
| Higher Rate Dividend Tax | 33.75% | 33.75% | 33.75% | 33.75% |
| Additional Rate Dividend Tax | 39.35% | 39.35% | 39.35% | 39.35% |
| Basic Rate Corporation Tax | 19% | 19% | 19% | 19% |
| Marginal Relief Corporation Tax | 1.5% | 1.5% | 1.5% | 1.5% |
| Higher Rate Corporation Tax | 25% | 25% | 25% | 25% |
| Lower Limit Corporation Tax | £50,000.00 | £50,000.00 | £50,000.00 | £50,000.00 |
| Upper Limit Corporation Tax | £250,000.00 | £250,000.00 | £250,000.00 | £250,000.00 |