What is the Personal Allowance for 2025/26?
The Personal Allowance for the 2025/26 tax year is £12,570. This is the amount of income you can earn each year before you start paying any income tax. It applies to all UK taxpayers in England, Wales, Northern Ireland and Scotland.
Key facts
- Amount: £12,570 per year (£1,047.50 per month)
- Tax year: 6 April 2025 to 5 April 2026
- Frozen since: 2021/22 (previously rose with inflation each year)
- Expected freeze until: At least 2027/28
- Tax code: 1257L (the most common UK tax code)
The £100,000 taper
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means:
- £100,000 income → £12,570 Personal Allowance (full)
- £110,000 income → £7,570 Personal Allowance
- £120,000 income → £2,570 Personal Allowance
- £125,140 income → £0 Personal Allowance (fully withdrawn)
This taper creates an effective marginal tax rate of approximately 60% (or 62% including National Insurance) in the £100,000–£125,140 income range. This is known as the 60% tax trap.
Fiscal drag
Because the Personal Allowance has been frozen since 2021/22 while wages have risen with inflation, more people are paying more tax each year without any headline tax increase. This effect is known as “fiscal drag”. In real terms, the Personal Allowance is worth significantly less than it was in 2021.
Source: HMRC — Income Tax rates and Personal Allowances. Last updated: April 2025.