In the UK, citizens pay a range of taxes—direct and indirect—at the national and local levels. Below is a detailed breakdown of all the main types of taxes UK residents typically encounter: 1. Income Tax Who pays it? Anyone earning above the personal allowance threshold (£12,570 as of 2025). How much? Income Band Rate Up to £12,570 0% (Personal allowance) £12,571–£50,270 20% (Basic rate) £50,271–£125,140 40% (Higher rate) Over £125,140 45% (Additional rate) Note: Personal all