UK Income Tax by Region: Highest Paying Areas Mapped

Marcus Thorne February 9, 2026 4 min read

In the 2022/23 tax year, residents of the London borough of Wandsworth contributed more in income tax than the combined totals from Leeds and Birmingham, as revealed by fresh data from HM Revenue and Customs (HMRC). These statistics highlight profound disparities in income tax contributions across various regions of the United Kingdom.

Wandsworth’s taxpayers handed over £4.26 billion in income tax during that period, surpassing the aggregate £4.23 billion paid by both Leeds and Birmingham. This significant figure underscores the exceptional tax burden borne by this particular London area compared to major cities elsewhere in the country.

Similarly, in the London borough of Hackney, income tax payments reached £1.54 billion in 2022/23, exceeding the total from Glasgow, Scotland’s second-largest city, where residents contributed £1.35 billion. Such comparisons illustrate how certain urban pockets, especially within London, dominate the national income tax landscape.

When examining the broader picture, London and the South East together accounted for 45% of the UK’s overall income tax revenue, which totaled £240.7 billion in 2022/23. This insight comes from an in-depth analysis of HMRC data conducted by the accountancy firm UHY Hacker Young.

The firm’s research further indicates that the top 20 UK areas with the highest income tax contributions per capita are all located in London or the South East. Factors such as frozen tax thresholds and the effects of fiscal drag have played key roles in elevating these regions’ tax outputs.

Neela Chauhan, a partner at UHY Hacker Young, commented: “London and the South East now represent nearly half of the UK’s total income tax revenue. This dominance stems not only from the high concentration of high-income individuals in these areas but also from longstanding tax policies that increasingly place the burden on top earners.”

Top 20 Regions by Total Income Tax Paid in 2022/23

The following table outlines the leading 20 areas in the UK based on total income tax paid during the 2022/23 tax year:

1. London: £63.8 billion
2. South East: £44.6 billion
3. East of England: £25.2 billion
4. North West: £18.6 billion
5. South West: £16.8 billion
6. Scotland: £16.2 billion
7. West Midlands: £14.4 billion
8. Yorkshire and the Humber: £12.8 billion
9. East Midlands: £12.5 billion
10. Surrey County: £9.95 billion
11. Hertfordshire County: £7.41 billion
12. Greater Manchester Metropolitan County: £6.76 billion
13. Wales: £6.53 billion
14. Essex County: £6.40 billion
15. Kent County: £6.23 billion
16. Hampshire County: £6.14 billion
17. West Midlands Metropolitan County: £5.58 billion
18. North East: £5.49 billion
19. West Yorkshire Metropolitan County: £5.31 billion
20. Kensington and Chelsea: £5.20 billion

Source: UHY Hacker Young analysis of HMRC data

A Decade of Surging Income Tax Contributions

Over the decade from April 2016, London’s share of income tax has surged by 80.7%, rising from £35.3 billion to £63.8 billion. In contrast, the rest of the UK experienced a more modest 48.4% increase, according to the detailed analysis.

This disparity arises because London and the South East host a disproportionately large number of high earners who are subject to the 45% tax rate. Consequently, these regions shoulder a greater proportion of the nation’s income tax responsibilities compared to other areas.

Moreover, an increasing number of taxpayers in the capital and surrounding South East have faced higher tax liabilities following the reduction of the 45% additional rate threshold from £150,000 to £125,140 in April 2023. Government estimates from that period suggest approximately 232,000 additional individuals became liable for this top rate who previously would not have been.

For earners with incomes ranging from £125,140 to £150,000, the average additional tax amounted to £621 for the 2023-2024 tax year. Those with incomes exceeding £150,000 saw an average increase of £1,256 in their tax bills.

Compounding these changes, personal allowances and higher-rate thresholds have remained frozen since April 2021. This policy has pulled more people into elevated tax brackets as their wages grow—a phenomenon referred to as fiscal drag.

Chauhan elaborated: “The combination of frozen allowances and a lowered additional-rate threshold has drawn more taxpayers into higher bands, resulting in a dramatic revenue boost from London—over 80% growth in the last ten years.”

She continued: “This trend highlights the Exchequer’s heavy reliance on London and the South East for funding. However, it also sparks worries about the sustainability of the UK’s tax framework, including potential declines in competitiveness and the possibility that sustained high taxes might encourage high earners to move overseas or scale back their business endeavors.”