What is the current rate of income tax?
Answers:
The UK rates are 10%, 22% and 40%.
All the current rates of Income Tax and Allowances are detailed here http://www.hmrc.gov.uk/rates/it.htm.
Income tax allowances 2005-06 (£) 2006-07 (£)
Personal allowance 4,895 5,035
Personal allowance for people aged 65-74 7,090 7,280
Personal allowance for people aged 75 and over 7,220 7,420
Income limit for age-related allowances 19,500 20,100
Married couple's allowance for people born before 6 April 1935 5,905 6,065
Married couple's allowance - aged 75 or more 5,975 6,135
Minimum amount of married couple's allowance 2,280 2,350
Blind person's allowance 1,610 1,660
I assume you are asking the rate of income tax in the United States. You can see the rate table here: http://www.taxadmin.org/fta/rate/ind_inc.
Income Tax band Income Tax rate on earned income (see note) Income Tax rate on savings Income Tax rate on dividends
Starting rate:
£1 to £2,150
10% 10% 10%
Basic rate:
£2,151 to £33,300
22% 20% 10%
Higher rate:
£33,301 and above
40% 40% 32.5%
See the this from Inland Revenue.
http://www.hmrc.gov.uk/rates/it.htm.
Also, check out this website. It calculates the your net pay after tax and NI.
http://www.listentotaxman.com/
40% is the maximum slab
10%, 22% and 40%
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