UK Tax Revenue Statistics
Live UK tax revenue counter 2026. The UK collects approximately £1.1 trillion in total tax revenue each year — over £3 billion every day — according to HMRC and OBR data.
About These Statistics
The UK collects approximately £1.1 trillion in total tax and National Insurance Contributions (NICs) each year, according to HMRC Tax Receipts statistics and OBR forecasts. This equates to approximately £3 billion every day or £126 million every hour.
Income tax is the largest single source of government revenue, raising approximately £275 billion per year. National Insurance Contributions raise approximately £177 billion, Value Added Tax (VAT) approximately £168 billion, and Corporation Tax approximately £90 billion. Together these four taxes account for approximately 65% of all government revenue.
The UK income tax system operates through personal allowances and tax bands. The personal allowance — the amount a person can earn before paying income tax — is currently £12,570. The basic rate of 20% applies to income above this up to £50,270; the higher rate of 40% applies between £50,270 and £125,140; and the additional rate of 45% applies above £125,140.
VAT at the standard rate of 20% applies to most goods and services. A reduced rate of 5% applies to certain items including domestic energy and children's car seats, and a zero rate applies to food, children's clothing, books and other items. VAT is one of the most economically efficient taxes as it is collected at each stage of the supply chain.
Tax evasion and avoidance represent a significant cost to public finances. HMRC estimates the tax gap — the difference between theoretical tax liability and tax actually collected — at approximately £36 billion per year, or approximately 4.8% of total theoretical liability. This includes tax evasion, fraud, criminal attacks on the tax system and legal tax avoidance.
Frequently Asked Questions
Based on official UK government data
How much tax does the UK collect each year?
The UK collects approximately £1.1 trillion in total taxes and National Insurance Contributions each year according to HMRC and OBR data. Income tax is the largest component at approximately £275 billion, followed by National Insurance at approximately £177 billion, VAT at approximately £168 billion and Corporation Tax at approximately £90 billion.
What is the UK income tax rate in 2026?
UK income tax rates for 2025/26 are: 0% on income up to £12,570 (personal allowance); 20% basic rate on income between £12,570 and £50,270; 40% higher rate on income between £50,270 and £125,140; and 45% additional rate on income above £125,140. The personal allowance is reduced for those earning over £100,000 and eliminated for those earning over £125,140.
What is the UK tax gap?
HMRC estimates the UK tax gap — the difference between tax theoretically owed and tax actually collected — at approximately £36 billion per year, or approximately 4.8% of total theoretical tax liability. The tax gap includes tax evasion, avoidance, criminal fraud, non-payment and errors. HMRC invests in compliance activity to reduce the tax gap and has reduced it from approximately 7.5% in 2005/06.