{"id":648,"date":"2025-03-08T08:46:00","date_gmt":"2025-03-08T08:46:00","guid":{"rendered":"https:\/\/www.experlu.co.uk\/dictionary\/?p=648"},"modified":"2025-03-26T07:19:21","modified_gmt":"2025-03-26T07:19:21","slug":"taxable-income","status":"publish","type":"post","link":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/","title":{"rendered":"Taxable income"},"content":{"rendered":"\n

Taxable income is the total income that an individual taxpayer pays tax on.<\/strong>
Every UK taxpayer gets a personal allowance<\/strong><\/mark><\/a> of \u00a312,570 for the tax year 2025-26 (same for 2024-25). It means tax is due on total income, less personal allowance. Personal allowance starts reducing for taxpayers earning income over \u00a3100,000.<\/p>\n\n\n\n

Besides the personal allowance, there are many other allowances and tax reliefs available, for example:<\/p>\n\n\n\n

\u2022 Dividend allowance, first \u00a3500 of dividend income is tax-free
\u2022 Capital gains tax allowance<\/strong><\/span><\/a>
\u2022 Rent a room relief
\u2022 Marriage allowance<\/strong><\/span><\/a>
\u2022 Blind person allowance<\/p>\n\n\n\n

Examples of taxable income in the UK<\/h3>\n\n\n\n

\u2022 Salaries and wages including, bonuses, tips, holiday pay, sick pay, redundancy payments over \u00a330,000
\u2022 Pensions income
\u2022 Property income
\u2022 Capital gains
\u2022 Investment income, including dividend income, interest income
\u2022 Self-employment profits
\u2022 Benefits-in-kind<\/p>\n\n\n\n

Tax rates and payments<\/h4>\n\n\n\n

The United Kingdom uses a “progressive tax rate” structure. The level of tax charged rises as the amount of the individual taxable income increases. The basic rate is 20%, and the higher rate is 45%

The income tax<\/a><\/strong> sometimes is deducted at source from your income, like salaries and other times you pay it via self-assessment, as in the case of property and dividend income.<\/p>\n","protected":false},"excerpt":{"rendered":"

Taxable income is the total income that an individual taxpayer pays tax on.Every UK taxpayer gets a personal allowance of \u00a312,570 for the tax year 2025-26 (same for 2024-25). It means tax is due on total income, less personal allowance. Personal allowance starts reducing for taxpayers earning income over \u00a3100,000. Besides the personal allowance, there […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[70],"class_list":["post-648","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-taxable-income"],"yoast_head":"\nWhat is taxable income?<\/title>\n<meta name=\"description\" content=\"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is taxable income?\" \/>\n<meta property=\"og:description\" content=\"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/\" \/>\n<meta property=\"og:site_name\" content=\"Experlu Dictionary\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-08T08:46:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-26T07:19:21+00:00\" \/>\n<meta name=\"author\" content=\"Experlu Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Experlu Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/\",\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/\",\"name\":\"What is taxable income?\",\"isPartOf\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#website\"},\"datePublished\":\"2025-03-08T08:46:00+00:00\",\"dateModified\":\"2025-03-26T07:19:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65\"},\"description\":\"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.experlu.co.uk\/dictionary\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Taxable income\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#website\",\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/\",\"name\":\"Experlu Dictionary\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.experlu.co.uk\/dictionary\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65\",\"name\":\"Experlu Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g\",\"caption\":\"Experlu Admin\"},\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/author\/aarifhabeeb\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is taxable income?","description":"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/","og_locale":"en_GB","og_type":"article","og_title":"What is taxable income?","og_description":"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!","og_url":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/","og_site_name":"Experlu Dictionary","article_published_time":"2025-03-08T08:46:00+00:00","article_modified_time":"2025-03-26T07:19:21+00:00","author":"Experlu Admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Experlu Admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/","url":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/","name":"What is taxable income?","isPartOf":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/#website"},"datePublished":"2025-03-08T08:46:00+00:00","dateModified":"2025-03-26T07:19:21+00:00","author":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65"},"description":"Understand taxable income, what counts as earnings, and how to reduce it legally with deductions and exemptions. Stay tax-savvy!","breadcrumb":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.experlu.co.uk\/dictionary\/taxable-income\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.experlu.co.uk\/dictionary\/"},{"@type":"ListItem","position":2,"name":"Taxable income"}]},{"@type":"WebSite","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#website","url":"https:\/\/www.experlu.co.uk\/dictionary\/","name":"Experlu Dictionary","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.experlu.co.uk\/dictionary\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65","name":"Experlu Admin","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g","caption":"Experlu Admin"},"url":"https:\/\/www.experlu.co.uk\/dictionary\/author\/aarifhabeeb\/"}]}},"_links":{"self":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/comments?post=648"}],"version-history":[{"count":4,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/648\/revisions"}],"predecessor-version":[{"id":1186,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/648\/revisions\/1186"}],"wp:attachment":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/media?parent=648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/categories?post=648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/tags?post=648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}