UK Income Tax Rates
2026/27
Everything you need to know about income tax bands, thresholds and allowances for the current tax year — including Scotland, the personal allowance taper and worked examples.
Income tax bands 2026/27 (England, Wales & Northern Ireland)
These rates apply to taxable income — income above your personal allowance.
| Band | Taxable income | Rate | Max tax in band |
|---|---|---|---|
| Personal allowanceTax-free for most people | Up to £12,570 | 0% | £0 |
| Basic rate | £12,571 – £50,270 | 20% | Up to £7,540 |
| Higher rateAllowance tapers from £100k | £50,271 – £125,140 | 40% | Up to £29,948 |
| Additional rateNo personal allowance | Over £125,140 | 45% | On excess |
Source: HMRC. Rates are for the 2026/27 tax year (6 April 2026 to 5 April 2027).
The personal allowance: £12,570
The personal allowance is the amount of income you can earn each year before paying any income tax. For 2026/27 it remains at £12,570 — frozen at this level since 2021/22 as part of the government's fiscal policy. With wages rising, this freeze is pulling more people into higher tax brackets — a phenomenon known as fiscal drag.
The personal allowance applies to the sum of all your taxable income: salary, self-employment income, rental income, savings interest and most other income. It is shared across all sources — you do not get a separate allowance for each income type.
Personal allowance taper: the 60% trap
If your income exceeds £100,000, you lose £1 of personal allowance for every £2 of income above that threshold. Between £100,000 and £125,140 your effective marginal tax rate is 60% — you pay 40% higher rate tax plus lose 20p of allowance on each additional pound. This makes pension contributions particularly valuable in this range.
Worked examples
Salary
£30,000
Salary
£60,000
These examples show income tax only. National Insurance and student loan deductions are separate.
Scotland income tax rates 2026/27
Scotland uses its own rates set by the Scottish Parliament. If you live in Scotland, these rates apply to your non-savings, non-dividend income.
| Band | Income range | Rate |
|---|---|---|
| Starter rate | £12,571 – £15,397 | 19% |
| Basic rate | £15,398 – £27,491 | 20% |
| Intermediate rate | £27,492 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Key facts for 2026/27
Frozen allowance until 2027/28
The £12,570 personal allowance has been frozen since 2021/22. This fiscal drag means millions more people are paying higher rates as wages rise.
Savings and dividend income
The savings allowance is £500 for basic rate taxpayers and £500 for higher rate taxpayers. The dividend allowance is £500. These are taxed at preferential rates.
Marriage allowance
If your partner earns less than £12,570, they can transfer £1,260 of their allowance to you — saving up to £252 per year in tax. See our marriage allowance guide.
Blind person's allowance
If you are registered blind you can claim an extra £3,070 (2026/27) of tax-free allowance, reducing your liability further.
Trading and property allowance
You can earn up to £1,000 from casual trading or property income before paying tax — these allowances replace actual expenses.
Gift Aid effect
Making charitable donations via Gift Aid extends your basic rate band, meaning higher earners can reclaim the 20% difference between basic and higher rate through their Self Assessment return.
Frequently asked questions
What is the income tax personal allowance for 2026/27?
The personal allowance is £12,570 for 2026/27. This is the amount you can earn tax-free each year. It has been frozen since 2021/22 and is set to remain at this level until at least 2027/28.
What are the income tax bands for 2026/27?
For 2026/27 in England, Wales and Northern Ireland: basic rate 20% on income between £12,571 and £50,270; higher rate 40% on income between £50,271 and £125,140; additional rate 45% on income above £125,140.
At what income does the personal allowance disappear?
The personal allowance tapers away for incomes above £100,000 — you lose £1 of allowance for every £2 earned over £100,000. By £125,140 the entire allowance has been withdrawn, creating an effective 60% marginal tax rate between £100,000 and £125,140.
Are Scotland income tax rates different in 2026/27?
Yes. Scotland has its own rates set by the Scottish Parliament. Scotland uses six bands (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%) which differ significantly from the rest of the UK above the basic rate.
See exactly what you take home
Enter your salary in our calculator for a full breakdown of income tax, National Insurance, student loan and pension deductions.