Standard personal allowance limits and tax deductions
The standard personal allowance (the amount you can normally earn before paying tax) will be £12,570 in 2024/25.
If your total taxable income across all sources (local government pension, state pension and any other income) is less than the personal allowance then you won't pay any tax, although different rules apply if you earn over £100,000 per annum or claim marriage allowance or blind person's allowance.
Where you live in the UK (England, Scotland or Wales) will determine the rate of income tax you pay on your pension. Therefore it is important that you keep us and HM Revenue and Customs (HMRC) informed if you move address.
Tax rates
If your total income takes you over £12,570 then the amount over this is taxed as follows:
UK rate
These are:
- basic rate 20%, up to £50,270
- higher rate 40%, from £50,271 - £125,140
- additional rate 45%, over £125,141
Scottish rate (S)
These are:
- starter rate 19%, up to £14,876
- basic rate 20%, from £14,877 - £26,561
- intermediate rate 21%, from £26,561 - £43,662
- higher rate 42%, from £43,663 - £75,000
- advanced rate 45%, from £75,001 - £125,140
- top rate 48%, over £125,141
Welsh rate (C)
These are:
- basic rate 20%, up to £50,270
- higher rate 40%, from £50,271 - £125,140
- additional rate 45%, over £125,141
Note: The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
Queries about tax codes
HM Revenue and Customs (HMRC) make the decision of what tax code to issue against each of your income sources in order for the correct tax deductions to be made.
If you have a query with any of these decisions you should speak to HMRC directly: