Being a student does not automatically make you exempt from Income Tax. Students are taxed under the same basic rules as other workers.
For the 2026/27 tax year, the standard Personal Allowance is £12,570. This means you can usually earn up to £12,570 during the tax year before paying Income Tax.
What happens above £12,570?
For most students in England, Wales and Northern Ireland:
| Annual income | Income Tax |
|---|---|
| Up to £12,570 | 0% |
| £12,571–£50,270 | 20% on the amount above your allowance |
| £50,271–£125,140 | 40% on income within this band |
Scotland uses different Income Tax bands.
What if you only work during the holidays?
Your Personal Allowance applies across the whole tax year, from 6 April to 5 April, not separately to each job or university term.
So if you earn £8,000 from a summer job and have no other taxable income that year, you would normally owe no Income Tax overall.
However, PAYE can sometimes deduct tax from your wages anyway — particularly if you start a temporary job without the correct tax code or earn a lot in a short period.
If your total annual income ends up below your allowance, you may be entitled to claim the overpaid tax back from HMRC.
What if you have two jobs?
You still only get one £12,570 Personal Allowance overall. HMRC may split it between your jobs through your tax codes.
Having several jobs does not give you several tax-free allowances.
Don't confuse Income Tax with National Insurance
You can sometimes pay National Insurance even when you owe no Income Tax, because National Insurance is calculated using separate thresholds and usually works on each pay period rather than simply your total annual earnings.
The main rule to remember is simple: students get the same Personal Allowance as everyone else — currently £12,570 a year.
