In 2024/25, income tax receipts in the United Kingdom amounted to 301 billion British pounds, compared with 275 billion in the previous year. Although the value of income tax receipts has grown quite consistently throughout this period, there is a sharp increase observable from 2021/22 onwards. The period of high inflation from 2021 onwards led to faster wage growth, which pushed many UK workers into higher tax bands, resulting in the increased income tax revenue. Income tax brackets The amount which workers in the United Kingdom pay in income tax is determined by how much they earn, placing them in different income tax bands. All workers in the United Kingdom are entitled to earn a personal allowance of 12,750 pounds before they are charged income tax. The Basic rate of 20 percent applies to income between 12,750 and 50,270 pounds, with a higher rate of 40 percent charged on incomes between 50,271 and 125,140 pounds. The highest tax band stands at 45 percent, for earnings over 125,140 pounds. Main UK taxes Income tax is the largest source of UK government revenue, accounting for 11 percent of gross domestic product in 2025/26. Value Added Tax was the next largest source of UK government revenue, followed by National Insurance, and Corporation Tax. Value Added Tax or VAT is the largest indirect tax in the UK, and is raised via a 20 percent levy on most goods and services sold in the UK. National Insurance Contributions form an additional direct tax on earnings in the UK, while Corporation Tax taxes the profits of companies resident in the UK.

In 2025/26, the government of the United Kingdom is expected to receive 1.2 trillion British pounds of public sector current receipts, with 329 billion British pounds coming from income tax, as well as 214 billion pounds from VAT. Other substantial sources of income include Corporation Tax, predicted to raise 105 billion pounds, and Council Tax, which will raise around 50 billion pounds. Government revenue falls short of spending Overall government revenue in 2023/24 amounted to approximately 1.13 trillion pounds, but with the government spending around 1.28 trillion pounds, the UK borrowed almost 152 billion pounds to cover its costs. As a consequence, the UK's national debt increased from 2.69 trillion pounds in 2022/23, to 2.81 trillion pounds in 2023/24, almost 100 per cent of GDP. Financing this debt is becoming increasingly burdensome for UK government finances, with the UK spending more on debt interest than on defence, transport, and public order and safety. Impact of COVID-19 on revenue sources Income received from some of the UK's typical revenue sources were severely depleted at the height of the COVID-19 pandemic. In 2018/19, for example, VAT raised around 132.5 billion pounds, with receipts falling to 129.9 billion pounds in 2019/20, and just 101.7 billion pounds in 2020/21. Corporation Tax, fell from 61.6 billion pounds in 2019/20, to 50.5 billion pounds in 2020/21, while revenue from Air Passenger Duties declined from 3.64 billion pounds in 2019/20, to just 590 million pounds in 2020/21, and just over one billion pounds in 2021/22.

In the United Kingdom, tax revenue as a share of GDP, sometimes called the national tax burden was 35.3 percent in 2024/25, up from just 28.4 percent in 1993/94.

Key information about UK Tax revenue: % of GDP

• United Kingdom Tax revenue: % of GDP was reported at 28.6 % in Sep 2025.
• This records an increase from the previous number of 26.4 % for Jun 2025.
• UK Tax revenue: % of GDP data is updated quarterly, averaging 23.6 % from Mar 1955 to Sep 2025, with 283 observations.
• The data reached an all-time high of 44.2 % in Mar 1955 and a record low of 19.9 % in Jun 1960.
• UK Tax revenue: % of GDP data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: % of Nominal GDP: Quarterly.

CEIC calculates quarterly Tax Revenue as % of Nominal GDP from quarterly Tax Revenue and quarterly Nominal GDP. Tax Revenue is calculated as the sum of Taxes on Income and Wealth, Taxes on Production, Other Current Taxes and Taxes on Capital. Office for National Statistics provides Tax Revenue in local currency and Nominal GDP in local currency.

The United Kingdom's government revenue was just over 1.13 trillion British pounds in 2024/25, compared with just under 1.1 trillion in 2023/24.

In the United Kingdom, tax revenue as a share of GDP, sometimes called the national tax burden, was 34.7 percent in 2024/25, up from just 28.4 percent in 1993/94.

Average annual incomes, taxes and benefits, and household characteristics of retired and non-retired households in the UK. Data for financial years, by quintile and decile groups, country and region and tenure type.

Provides receipts information for UK oil and gas production, covering all historical duties levied on companies participating in this ring fence regime, including ring fence Corporation Tax (RFCT), supplementary charge (SC), Petroleum Revenue Tax (PRT) and royalties. Previously listed under 'Revenue-based Taxes and Benefits: Corporate Tax'.

Source agency: HM Revenue and Customs

Designation: National Statistics

Language: English

Alternative title: Government Revenue from UK Oil and Gas Production

United Kingdom UK: Expenditure: Interest Payments: % of Expenditure data was reported at 6.473 % in 2016. This records an increase from the previous number of 5.973 % for 2015. United Kingdom UK: Expenditure: Interest Payments: % of Expenditure data is updated yearly, averaging 8.627 % from Dec 1972 (Median) to 2016, with 45 observations. The data reached an all-time high of 11.441 % in 1987 and a record low of 4.333 % in 2009. United Kingdom UK: Expenditure: Interest Payments: % of Expenditure data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Government Revenue, Expenditure and Finance. Interest payments include interest payments on government debt--including long-term bonds, long-term loans, and other debt instruments--to domestic and foreign residents.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files.; Median;

This is a National Statistics publication produced by HM Revenue and Customs using receipts information from HMRC’s administrative systems. For more information on National Statistics and governance of statistics produced by public bodies please see the UK Statistics Authority website.

Provides general information on all HMRC taxes, including tax receipts, the number of taxpayers, personal tax credits, child benefit and estimates of the cost of tax expenditures and structural relief. Source agency: HM Revenue and Customs Designation: National Statistics Language: English Alternative title: Revenue Based Taxes

A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.

Forecast: Climate Change-Related Pollution Tax Revenue in the UK 2024 - 2028 Discover more data with ReportLinker!

United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data was reported at 25.597 % in 2016. This records an increase from the previous number of 25.160 % for 2015. United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data is updated yearly, averaging 24.639 % from Dec 1972 (Median) to 2016, with 45 observations. The data reached an all-time high of 26.546 % in 2008 and a record low of 21.072 % in 1973. United Kingdom UK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: Government Revenue, Expenditure and Finance. Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security contributions are excluded. Refunds and corrections of erroneously collected tax revenue are treated as negative revenue.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files, and World Bank and OECD GDP estimates.; Weighted Average;

Tax revenue from customs duty receipts in the United Kingdom amounted to ****billion British pounds in 2024/25, compared with ****billion pounds in the previous year.

United Kingdom UK: Revenue and Grants: Revenue: Other Taxes data was reported at 37,089.000 GBP mn in 2016. This records an increase from the previous number of 36,222.000 GBP mn for 2015. United Kingdom UK: Revenue and Grants: Revenue: Other Taxes data is updated yearly, averaging 14,670.000 GBP mn from Dec 1972 (Median) to 2016, with 45 observations. The data reached an all-time high of 47,722.000 GBP mn in 2008 and a record low of 362.000 GBP mn in 1975. United Kingdom UK: Revenue and Grants: Revenue: Other Taxes data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: Government Revenue, Expenditure and Finance. Other taxes include employer payroll or labor taxes, taxes on property, and taxes not allocable to other categories, such as penalties for late payment or nonpayment of taxes.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files.; ;