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The Higher Rate tax band is the rate through which you pay a portion of your Income Tax if your income is between £50,270 to £125,140 per annum. The tax rate is 40% for this portion of your taxable income. The tax rates and bands are listed below (as of the 2023/2024 tax year):
| Income | Tax rate | |
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £50,270 | 20% | Basic Rate |
| £50,271 to £125,140 | 40% | Higher Rate |
| over £125,141 | 45% | Additional Rate |
When you earn less than £12,570 every year, this income is tax-free. It’s known as the Personal Allowance. Any income that you earn above this is taxed at the above rates. But it’s important to remember that the rate that you’re taxed is segmented.
Frequently Asked Questions
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How much Income Tax should I be paying?
for support with your accounts and information regarding your tax obligations, contact our experts today.
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Do I still get my tax-free Personal Allowance if I pay Higher Rate tax?
This depends on your salary. Once you earn over £100,000 per annum, your tax-free Personal Allowance decreases by £1 for every £2 you earn above £100,000.
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