Contractor Calculator
UK Tax Rate History: 2000/01 to 2026/27
Explore how UK income tax, National Insurance, corporation tax and dividend tax rates have changed across 27 tax years — from 2000/01 to 2026/27.
27 Years of UK Tax
How rates have changed from 2000/01 to 2026/27
Key Milestones
Basic rate cut from 22% to 20%, starting rate abolished
50% additional rate introduced for income over £150k
Additional rate reduced to 45%
Personal allowance reaches £10,000
Dividend allowance introduced at £5,000
NI primary threshold aligned with personal allowance
Corporation tax main rate rises to 25%
Employer NI jumps to 15%, threshold slashed to £5k
Personal Allowance Over Time
How is this calculated?
All tax rates are sourced from official HMRC publications for each tax year. The calculator applies:
- Personal allowance with taper (£1 reduction for every £2 over the threshold, where applicable)
- Income tax bands: starting rate (pre-2008), basic rate, higher rate, and additional rate (post-2010)
- Employee National Insurance: main rate between the primary threshold and upper earnings limit, plus the upper rate above
Rest-of-UK (non-Scottish) rates are used. Calculations are illustrative and should not be treated as tax advice.
Frequently Asked Questions
How has the UK personal allowance changed over time?
The personal allowance has risen significantly from £4,385 in 2000/01 to £12,570 in 2026/27. The biggest increases came between 2010 and 2017 as part of a deliberate government policy to take low earners out of income tax.
When was the 50p additional rate introduced?
The 50% additional rate of income tax was introduced in 2010/11 for income over £150,000. It was reduced to 45% from 2013/14 onwards. Before 2010, the UK only had basic and higher rates of income tax.
How has corporation tax changed in the UK?
Corporation tax had a two-tier system (small profits rate and main rate) until 2015, when both were unified at 19%. In 2023/24, the tiered system returned with a 25% main rate for profits over £250,000 and 19% for profits under £50,000.
How does this calculator work?
The calculator uses HMRC-published tax rates for each year to compute income tax and employee National Insurance contributions. It applies the personal allowance (with taper where applicable), each income tax band in order, and NI between the primary threshold and upper earnings limit. All rates are sourced from official HMRC publications.
What was the UK income tax basic rate in 2000/01?
The UK income tax basic rate was 22% in 2000/01. It remained at 22% until 2008/09, when it was cut to 20% — where it has remained ever since. The 10% starting rate that previously applied to the first slice of taxable income was also abolished in 2008/09.
When was the dividend allowance introduced and how has it changed?
The dividend allowance was introduced in 2016/17 at £5,000. It was cut to £2,000 in 2018/19, then reduced sharply to £1,000 in 2023/24 and further to £500 in 2024/25. Dividend tax rates themselves were also increased in April 2026.
What is fiscal drag and how has it affected UK taxpayers?
Fiscal drag occurs when tax thresholds are frozen while wages rise, pushing more income into higher tax bands without any explicit rate increase. The personal allowance has been frozen at £12,570 since 2021/22 — meaning millions of taxpayers have paid more in real terms each year as earnings increased. The higher-rate threshold has also been frozen, drawing more earners into the 40% band.
UK Tax Rates by Year: Complete Reference
Key rates for each tax year from 2000/01 to 2026/27. All data sourced from HMRC.
| Tax year | Personal allowance | Basic rate | Higher rate | Emp. NI rate | Corp tax (main) |
|---|---|---|---|---|---|
| 2026/27 ★ | £12,570 | 20% | 40% | 8% | 25% |
| 2025/26 | £12,570 | 20% | 40% | 8% | 25% |
| 2024/25 | £12,570 | 20% | 40% | 8% | 25% |
| 2023/24 | £12,570 | 20% | 40% | 8% | 25% |
| 2022/23 | £12,570 | 20% | 40% | 13% | 25% |
| 2021/22 | £12,570 | 20% | 40% | 12% | 25% |
| 2020/21 | £12,500 | 20% | 40% | 12% | 25% |
| 2019/20 | £12,500 | 20% | 40% | 12% | 19% |
| 2018/19 | £11,850 | 20% | 40% | 12% | 19% |
| 2017/18 | £11,500 | 20% | 40% | 12% | 19% |
| 2016/17 | £11,000 | 20% | 40% | 12% | 19% |
| 2015/16 | £10,600 | 20% | 40% | 12% | 20% |
| 2014/15 | £10,000 | 20% | 40% | 12% | 21% |
| 2013/14 | £9,440 | 20% | 40% | 12% | 23% |
| 2012/13 | £8,105 | 20% | 40% | 12% | 24% |
| 2011/12 | £7,475 | 20% | 40% | 12% | 26% |
| 2010/11 | £6,475 | 20% | 40% | 11% | 28% |
| 2009/10 | £6,475 | 20% | 40% | 11% | 28% |
| 2008/09 | £6,035 | 20% | 40% | 11% | 28% |
| 2007/08 | £5,225 | 22% | 40% | 11% | 30% |
| 2006/07 | £5,035 | 22% | 40% | 11% | 30% |
| 2005/06 | £4,895 | 22% | 40% | 11% | 30% |
| 2004/05 | £4,745 | 22% | 40% | 11% | 30% |
| 2003/04 | £4,615 | 22% | 40% | 11% | 30% |
| 2002/03 | £4,615 | 22% | 40% | 10% | 30% |
| 2001/02 | £4,535 | 22% | 40% | 10% | 30% |
| 2000/01 | £4,385 | 22% | 40% | 10% | 30% |
★ Current tax year. Rates shown are for rest-of-UK (non-Scottish) taxpayers.
These calculations are estimates based on current published tax rates. They do not constitute financial, tax, or legal advice. Always consult a qualified accountant for your specific situation.
Tax rates sourced from HMRC published rates for the 2026/27 tax year. Last verified: March 2026.
Source: HMRC published tax rates. Data covers 2000/01 to 2026/27.