Tax-free Personal Allowance Guide
What is a tax-free personal allowance?
Your tax-free personal allowance is the amount of salary you can earn before you are required to pay income tax. For the 2024/25 tax year, the tax-free personal allowance is £12,570.
The amount of tax you pay on taxable income depends on where you live.
United Kingdom (excluding Scotland)
| Salary band | Income tax rate |
| £12,500 - £50,270 | 20% |
| £50,271 - £125,140* | 40% |
| Above £125,141 | 45% |
Scotland
| Salary band | Income tax rate |
|---|---|
| £12,571 - £14,876 | 19% |
| £14,877 – £26,561 | 20% |
| £26,562 - £43,662 | 21% |
| £43,663 - £75,000 | 42% |
| £75,001 - £125,140* | 45% |
| Over £125,140 | 48% |
* If you earn over £100,000, your personal allowance will be reduced by £1 for every £2 over the limit you earn. This means if you earn over £125,140, your personal allowance will be £0.
Disclaimer:
Your personal tax-free allowance may differ if you are in receipt of other benefits or allowances. SEAT does not offer financial advice and recommends that you contact your own personal financial advisor.
