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)
Income2023/24 NetTax %2024/25 NetTax %DifferenceInflation adj. %Inflation adj.
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.

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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 2023/24Wales 2023/24England 2024/25Wales 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 Tax20%20%20%20%
Higher Rate Tax40%40%40%40%
Additional Rate Tax45%45%45%45%
Employer NI Rate13.8%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 Rate11.5%
(Change from 12% to 10% from Jan 2024. Using a blended rate of 11.5% for now.)
(Change from 12% to 10% from Jan 2024. Using a blended rate of 11.5% for now.)
(Change from 10% to 8%.)
(Change from 10% to 8%.)
Employee Upper Earning Rate2%2%2%2%
Dividend Allowance£1,000.00£1,000.00£1,000.00£1,000.00
Basic Rate Dividend Tax8.75%8.75%8.75%8.75%
Higher Rate Dividend Tax33.75%33.75%33.75%33.75%
Additional Rate Dividend Tax39.35%39.35%39.35%39.35%
Basic Rate Corporation Tax19%19%19%19%
Marginal Relief Corporation Tax1.5%1.5%1.5%1.5%
Higher Rate Corporation Tax25%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
Note: 2023/24 tax year uses blended employee NI rate of 11.5% is used since it changed in January 2024 from 12% to 10%. No other incomes or tax reliefs are considered.

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1Disclaimer: These calculations are simplified and illustrative only. They are not tax advice. There are no guarantees that the calculations are correct, complete, up to date or applicable to your situation. Consult a tax professional for your specific situation before making any decisions.