Enter your salary above to see how your tax has changed since 2020.
How UK Tax Has Changed 2020–2027
2020/21: Personal allowance stood at £12,500. The basic-rate band ran to £50,000. NI applied at 8% on earnings between £9,500 and £50,000.
2021/22: The personal allowance rose slightly to £12,570 and the NI lower threshold increased to £9,568 · the last year of meaningful threshold increases.
2022/23: NI was temporarily raised by 1.25 percentage points (the Health and Social Care Levy) in April 2022, then reversed in November 2022. This calculator uses the effective annual average. The personal allowance was frozen for the first time.
2023/24: NI was cut from January 2024 · from 12% to 10% on earnings in the basic-rate band. The effective annual average was approximately 11%.
2024/25 – 2026/27: NI held at 8%. All income tax thresholds remain frozen. The Government confirmed the freeze will continue through to 2028. Workers receiving pay rises to keep up with inflation are pushed into higher effective tax rates · a stealth tax increase known as fiscal drag.
Income Tax History FAQs
How have UK income tax rates changed over time?
The basic rate has been 20% since 2008/09, down from 22% before that. The higher rate has held at 40% for decades. The additional 45% rate replaced the temporary 50% rate in 2013/14. The personal allowance grew steadily from £4,385 in 2000/01 to £12,570 in 2021/22 · but has been frozen ever since. Had it risen with inflation it would exceed £14,000 by 2026/27 · the freeze amounts to a stealth tax increase for millions of workers.
What was the highest UK income tax rate ever?
The highest UK income tax rate was 99.25% during World War II. In the 1970s the top rate was 83% on earned income (and 98% on investment income). Margaret Thatcher cut the top rate to 60% in 1979 and then 40% in 1988. Gordon Brown introduced a temporary 50% additional rate in 2010/11 · reduced to 45% by George Osborne in 2013/14, where it has remained.
When did the 45% additional rate start?
The 45% additional rate was introduced in 2013/14, replacing the 50% top rate that had applied since 2010/11. It applies to taxable income above £125,140 in 2026/27 (reduced from £150,000 following the 2022 Autumn Statement). Above this threshold the personal allowance is also tapered away, creating an effective marginal rate higher than 45% for income between £100,000 and £125,140.
Has the personal allowance always been the same?
No. The personal allowance has changed significantly over the decades. It was £4,385 in 2000/01 and rose gradually each year. The coalition government (2010–2015) made large increases as a policy priority, reaching £10,000 by 2014/15. It hit £12,500 in 2019/20 and £12,570 in 2021/22 · where it has been frozen ever since under a policy extended to at least April 2028.
For informational purposes only · Not financial advice · Tax calculations are simplified and do not account for all allowances, reliefs, or individual circumstances · Scottish rates shown are approximate