Income Tax rates and taxable bands for the 2 tax years from 2018 to 2019

1. Personal tax and benefits

1.1 Income Tax bands of taxable income (£ per year)

Tax year 2017 to 2018 Tax year 2018 to 2019
Basic rate £1 – £33,500 £1 – £34,500
Higher rate £33,501 – £150,000 £34,501 – £150,000
Additional rate Over £150,000 Over £150,000

1.2 Income tax rates – 2017-18

Main rates 3
Basic rate 20%
Higher rate 40%
Additional rate 45%
Savings rates 4
Starting rate for savings 0%
Savings basic rate 20%
Savings higher rate 40%
Savings additional rate 45%
Dividend rates 5
Dividend ordinary rate – for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate – for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate – for dividends otherwise taxable at the additional rate 38.1%
Default rates 6
Default basic rate 20%
Default higher rate 40%
Default additional rate 45%


1.3 
Income tax rates – 2018-19

Band Taxable income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate over £150,000 45%

1.4 Personal Savings Allowance

Income Tax band Tax-free savings income
Basic rate £1,000
Higher rate £500
Additional rate £0

1.5 Dividend Allowance

Tax year Dividend allowance
6 April 2018 to 5 April 2019 £2,000
6 April 2017 to 5 April 2018 £5,000
6 April 2016 to 5 April 2017 £5,000

1.6 Dividend Tax Rates

Tax band Tax rate on dividends over your allowance
Basic rate 7.5%
Higher rate 32.5%
Additional rate 38.1%