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HMRC · OBR · DWP · ONS

Who pays

the tax

and where
it goes.

Income tax is not spread thinly. It is carried by a narrow band at the top, and the band has been getting narrower for twenty five years.

Drag the scale below through the taxpayer distribution. Every figure moves with it.

The sliding scale
TOP 50%
1st25thMedian75th99th
Total income before tax £29,700 The 50th percentile taxpayer
Effective income tax rate 11.6% £3,426 of income tax
Share of all income tax paid at or above here 90% Carried by the top 50% of taxpayers
Share of the total income tax take collected from this point upwards 90%
Top 1% pay 28%· Top 10% pay 60%· Bottom 50% pay 10%· 53.3% are net recipients· Welfare takes £334bn·
Top 1% pay 28%· Top 10% pay 60%· Bottom 50% pay 10%· 53.3% are net recipients· Welfare takes £334bn·
60%
Share of all UK income tax paid by the top 10% of taxpayers, 2024-25
Four groups, one table
 GroupShare of incomeShare of taxMultiple
01Bottom 50%24%10%0.4x
0250th to 90th41%30%0.7x
0390th to 99th22%32%1.5x
04Top 1%13.3%28.2%2.1x

Multiple is share of tax divided by share of income. Above 1.0x the group pays more than its income would imply. Figures for 2024-25, taxpayers only.

The other side of the ledger

£1,368bn
goes out.

Total managed expenditure in 2025-26. Around £48,000 per household, or 44.8% of national income. Welfare is the second largest block, and it is bigger than capital investment and debt interest combined.

01Day to day public services£523bn38%
02Welfare and social security£333bn24%
03Other annually managed spend£245bn18%
04Capital investment£157bn11%
05Net debt interest£110bn8%

Within day to day departmental spending the largest single items are health at £204bn, education at £95bn and defence at £39bn. Row 03 is the residual and includes items such as public service pensions and accounting adjustments.

What welfare actually is

Over half of it
is pensioners.

Around 55% of social security spending goes to pensioners. The single largest line in the entire welfare budget is the State Pension, at £146.1bn. Welfare is not mostly unemployment support. It is mostly old age.

Pensioners · £177.7bn
Working age and children · £145.0bn
55%Great Britain, 2025-2645%

State Pension

£146.1bn in 2025-26. Nearly half of all welfare spending, and more than the entire schools budget.

Disability support

£77.1bn. This cuts across both halves of the bar rather than sitting inside one, so it is shown separately.

Scale

UK social security is forecast at £333.7bn in 2025-26, 10.6% of GDP and 23.6% of everything the government spends.

Direction

Welfare was £314.9bn in 2024-25 and is forecast to reach £408.6bn by 2030-31, rising to 11.2% of GDP.

Net position

Most people
take out more
than they put in.

Counting cash benefits and benefits in kind such as the NHS and state education, against direct and indirect taxes. The majority position is not a moral verdict. It is mostly a function of age.

53.3%of people lived in households that received more in benefits than they paid in tax, FYE 2024
90.1%of retired households were net recipients
45.8%of non retired households were net recipients

Source: ONS, Effects of taxes and benefits on UK household income, financial year ending 2024. State Pension and Pension Credit are classified as cash benefits.

Read it carefully
Income tax is a quarter of the tax take. The other three quarters do not look like this.

Non taxpayers are invisible here

The bottom 50% means the bottom half of taxpayers, not of adults. Around 35.6% of the adult population paid no income tax at all in 2023-24, so the real base is narrower than the chart suggests.

Council tax runs the other way

The bottom decile pays roughly 8% of net income in council tax. The top deciles pay 2% to 3%. VAT looks regressive against income but sits at 13% to 16% of spending across the whole distribution.

The system still redistributes

Before taxes and benefits the richest fifth had 12.2 times the income of the poorest fifth. After them, 3.3 times. The Gini falls from 47.6% to 26.8%.

Tax and spend are different years

The tax shares are 2024-25 outturn. The spending figures are 2025-26 forecasts. They describe the same system but not the same twelve months.

Scotland differs

These are UK wide figures on rest of UK rates. Scottish income tax has six bands and a higher top rate, so an Edinburgh taxpayer above roughly £30,300 pays more than the rate shown.

Nothing balances

Spending of £1,368bn is not funded by tax alone. The gap is borrowing, which is why debt interest is now a larger line than defence.