Basic Rate
The standard income tax rate of 20% applied to taxable income between the Personal Allowance and the higher-rate threshold, currently £12,571 to £50,270 in England, Wales, and Northern Ireland. Scotland has its own set of rates (starter, basic, and intermediate) that differ from the rest of the UK. Most employed workers pay predominantly at the basic rate.
Related Terms
Higher Rate
The income tax rate of 40% applied to taxable income above £50,270 up to £125,140 in England, Wales, and Northern Ireland.
Additional Rate
The highest income tax rate in England, Wales, and Northern Ireland, charged at 45% on taxable income above £125,140.
Personal Allowance
The amount of income you can earn in a tax year before paying income tax, currently £12,570 and frozen until April 2028.
Tax Bands
The ranges of taxable income to which different income tax rates apply, creating the UK's progressive tax system.
Tax Code
A code issued by HMRC to your employer to tell them how much income tax to deduct from your pay each period.
Try the calculator
Use our free tool to see how basic rate affects your tax.