Tax Distribution

How is your income tax spent

The table below shows how UK public spending was divided, using the headings HM Revenue and Customs uses in its Annual Tax Summary (2024-25 headings, guidance updated 4 March 2026). To show how your tax is spent, each figure is your Income Tax plus employee National Insurance multiplied by that heading's share of total spending.

Tax Expenditure

per year
Your £6,279.88 of Income Tax and National Insurance pays for 15 headings of public spending. The largest are Welfare £1,336.69, Health £1,313.33, State Pensions £748.46.
You pay£6,279.88tax this year
ContributionShare
Welfare£1,336.6921.3%
Health£1,313.3320.9%
State Pensions£748.4611.9%
National Debt Interest£677.3110.8%
Education£644.7210.3%
Defence£345.445.5%
Public Order & Safety£279.184.4%
Transport£252.024.0%
Business & Industry£219.433.5%
Government Administration£124.922.0%
Housing and utilities (e.g. street lights)£121.121.9%
Environment£92.881.5%
Culture (e.g. sports, libraries, museums)£78.761.3%
Overseas Aid£41.820.7%
Outstanding payments to the EU£3.800.1%

Source: HM Revenue and Customs, How public spending was calculated in your tax summary (Annual Tax Summary), PESA public expenditure data for the tax summary headings. 2024-25 headings, guidance updated 4 March 2026. Retrieved 19/10/2026.