Most taxpayers can expect few changes to their income tax in April, as today’s Budget has revealed.
The Chancellor Rishi Sunak’s announcement means there won’t be any changes to income tax rates, thresholds or allowances.
The increase in the amount you earn before paying National Insurance Contributions will increase your take-home pay, however.
- Follow our live coverage: Budget 2020 live – what you need to know
How much income tax will I pay from April?
- Basic-rate taxpayers will continue to pay 20% tax on earnings between £12,501 to £50,000.
- Higher-rate taxpayers will continue to pay 40% on income between £50,001 to £150,000.
- Additional-rate taxpayers will continue to pay 45% on earnings over £150,000.
Using the dropdown options, our income tax calculator below can show you how much income tax you can expect to pay in the new tax year.
How the personal allowance compares
Since 2010, the government has raised the tax-free personal allowance by 90% from £6,475 in 2010 to £12,500 in 2019-20, as the chart below shows.
The Autumn Budget 2018 revealed that the threshold changes were being brought in a year ahead of what was promised in the Conservative manifesto, which is why they’re sticking to £12,500 for 2020-21.
Personal allowances compared
In the last Budget in October 2018, the personal allowance was raised from £11,850 to the current amount of £12,500.
The then-Chancellor Philip Hammond announced this would remain until April 2021, when the allowance would increase in line with the Consumer Price Index (CPI) measure of inflation.
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Income tax in Scotland and Wales
Today’s announcement won’t affect Scotland and Wales, which already announced their Budgets for the upcoming tax year.
Scotland: 2020-21 tax rates
|Starter rate||£12,501 – £14,585||19%|
|Basic rate||£14,586 – £25,158||20%|
|Intermediate rate||£25,159 – £43,430||21%|
|Higher rate||£43,431 – £150,000||41%|
|Top rate||Over £150,000||46%|
- Find out more: Income tax in Scotland
Wales: 2020-21 tax rates
|Basic rate||£12,501 – £50,000||20%|
|Higher rate||£50,001 – £150,000||40%|
|Additional rate||Over £150,000||45%|
- Find out more: Income tax in Wales