Income Tax Rates 2016/17

Income Tax Rates

2016/17

2015/16

Band £ Rate % Band £ Rate %
0 – 5,000 0* 0 – 5,000 0*
0 – 32,000 20** 0 – 31,785 20**
32,001 – 150,000 40♦ 31,786 – 150,000 40♦
Over 150,000 45† Over 150,000 45†

*Only applicable to savings income. The rate is not available if taxable non-savings income exceeds £5,000. For 2016/17, £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free.
** Except dividends 7.5% (0%).
♦ Except dividends 32.5% (25%).
† Except dividends 38.1% (30.6%).
Other income taxed first, then savings income and finally dividends. For 2016/17 the first £5,000 of dividends are tax free.