The higher rate tax threshold is being reduced, meaning you will now pay 40% tax on earnings over £37,700.
This isn’t the case. Income tax thresholds are not changing, except in Scotland which has different income tax bands to the rest of the UK. In England, Wales and Northern Ireland the 40% higher rate of income tax is generally only paid on income between £50,271 and £125,140.
Posts circulating on social media wrongly claim that new tax thresholds or “allowances” mean that people earning £37,701 or more will pay the 40% higher rate of income tax.
A number of posts on Facebook have shared screenshots from the Gov.uk website outlining the PAYE (pay-as-you-earn) income tax thresholds for the 2025/2026 tax year, which begins on 6 April 2025.
Several of these posts claim that these show that those earning £37,701 or more will pay the higher rate of 40%, rather than the basic rate of 20%.
One post on Facebook says: “How come I havent seen anything on the news about the higher rate tax threshhold being reduced from £50,271 to £37,701 [sic]. Share as much as possible as this has been kept quiet. Yet another stealth tax.”
But these claims are not accurate, and appear to stem from a misunderstanding of the income tax system and the Gov.uk screenshots.
There will be no change to income tax thresholds in England, Wales and Northern Ireland in 2025/26. (Scotland has different income tax rates—it is raising some thresholds in April, meaning people will be able to earn more before moving into the basic and intermediate bands). In England, Wales and Northern Ireland the 40% rate generally only applies to people who earn over £50,270.
This is because most people (including in Scotland) have a tax-free ‘Personal Allowance’ of £12,570, which you are not taxed on. In England, Wales and Northern Ireland income between £12,571 and £50,270 (that is, the £37,700 of income between the basic rate and higher rate thresholds) is generally subject to the 20% rate of income tax.
Income between £50,270 and £125,140 is generally taxed at the higher rate of 40%, and income above £125,140 at the additional rate of 45%.
The Personal Allowance decreases if a person’s income is over £100,000. The Gov.uk website outlines income tax rates and bands, including the personal allowance, for 2024/25 (archived here).
Honesty in public debate matters
You can help us take action – and get our regular free email
The screenshots featured in the Facebook posts appear to be taken from a government webpage outlining the rates and thresholds employers should use when calculating their employees’ tax in 2025/26, which are the same as for the current financial year. When we checked, this page appeared at the top of Google search results for the query “tax thresholds 25/26”.
Although the page does state that the thresholds quoted are the amount “above the PAYE threshold”, this appears to have been misunderstood.
The broadcaster and personal finance expert Martin Lewis from MoneySavingExpert.com posted about this claim on X (formerly Twitter), saying: “I keep getting people ask me "why has no one publicised that they've sneakily reduced the higher 40% income tax rate to £37701!?"
“They haven't. In general you don't pay tax at 40% until your earnings are over £50,271 (and then only on the amount above that). People are getting confused because of how it is displayed.”
It’s important that people have access to accurate information about tax and finance, as misleading posts such as these can cause uncertainty. Before sharing something you see online, consider whether it’s come from a verifiable source and whether it needs any additional context.
This article is part of our work fact checking potentially false pictures, videos and stories on Facebook. You can read more about this—and find out how to report Facebook content—here. For the purposes of that scheme, we’ve rated this claim as false because income tax thresholds are not changing, except in Scotland, and in England, Wales and Northern Ireland the 40% higher rate of income tax is generally only paid on income between £50,271 and £125,140.
Full Fact fights for good, reliable information in the media, online, and in politics.
Bad information ruins lives. It promotes hate, damages people’s health, and hurts democracy. You deserve better.