Income tax rates and bands 2026/27
Income tax is charged in slices. The first part of a year's income is covered by the personal allowance of £12,570, and each slice above it is taxed at the rate for its band. The tables show where each band starts as a salary.
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £137,710 | 40% |
| Additional rate | Over £137,710 | 45% |
| The personal allowance falls by £1 for every £2 of income over £100,000. | ||
Source: www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027, checked 22 September 2026; www.gov.uk/income-tax-rates, checked 22 September 2026
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £137,710 | 45% |
| Top rate | Over £137,710 | 48% |
Source: www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027, checked 22 September 2026
Frozen thresholds and what they cost
The Personal Allowance has been £12,570 since tax year 2021-22, and the government has said it will stay there until 5 April 2031. The basic rate limit and the matching National Insurance thresholds are frozen for the same period. When pay rises and the thresholds do not, more of each pound is taxed. This is sometimes called fiscal drag.
Consumer prices rose about 24% between 2021 and 2025, using the yearly average of the Consumer Prices Index. If the Personal Allowance and the basic rate limit had risen by the same amount, the allowance would be £15,589 and the higher rate would start at £62,342 instead of £50,270. The table compares Income Tax and employee National Insurance in 2026/27 under both sets of thresholds.
| Salary | With frozen thresholds | If thresholds had risen with prices | Extra paid a year |
|---|---|---|---|
| £20,000 | £2,078.60 | £1,235.08 | £843.52 |
| £30,000 | £4,878.60 | £4,035.08 | £843.52 |
| £40,000 | £7,678.60 | £6,835.08 | £843.52 |
| £50,000 | £10,478.60 | £9,635.08 | £843.52 |
| £60,000 | £14,639.00 | £12,435.08 | £2,203.92 |
| £80,000 | £23,039.00 | £20,507.20 | £2,531.80 |
Source: www.gov.uk/government/statistics/income-tax-liabilities-statistics-tax-year-2023-to-2024-to-tax-year-2026-to-2027/bulletin-commentary, checked 12 October 2026; www.gov.uk/government/publications/maintaining-income-tax-and-equivalent-national-insurance-contributions-thresholds-until-5-april-2031, checked 12 October 2026; www.gov.uk/government/statistics/income-tax-liabilities-statistics-tax-year-2023-to-2024-to-tax-year-2026-to-2027/summary-statistics, checked 12 October 2026; www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7bt/mm23, checked 23 September 2026
The figures use the site's take-home calculator with a standard tax code, no pension and no student loan. The comparison raises the Personal Allowance, the basic rate limit, the National Insurance primary threshold and the upper earnings limit by the price rise, rounded to the nearest pound. It leaves the £100,000 allowance taper and the additional rate as they are. It shows the effect of the freeze, not a forecast of any future change.
HMRC projects 7.7 million higher rate taxpayers in 2026/27, 33.8% more than in 2023 to 2024. The threshold freeze chart shows the cost at many more salaries, and you can embed it on your own site.
England, Wales and Northern Ireland
Three rates apply to earned income outside Scotland. The basic rate of 20% covers the first slice above the allowance. With the standard allowance, the higher rate of 40% starts on salary above £50,270, the same point where the main rate of National Insurance stops. The additional rate of 45% applies to the top slice. Wales has the power to set its own rates, and for 2026/27 they match England's.
Scotland
Scottish taxpayers pay income tax on wages, pensions and most other income apart from savings and dividends at six rates, from the starter rate of 19% to the top rate of 48%. The starter band is narrow, and the intermediate rate of 21% sits between the basic rate and the higher rate of 42%. Someone on a low salary in Scotland pays a little less tax than they would in England. On middle and high salaries the Scottish bill is larger.
When the personal allowance shrinks
Above an adjusted income of £100,000, the personal allowance falls by one pound for every two pounds of extra income, until none is left. Each pound in that range is taxed at the higher rate and also pulls a further fifty pence into tax. Outside Scotland that gives an effective rate of sixty per cent on income tax alone, before National Insurance.
Using the bands
The take-home pay calculator applies these bands to any salary and shows each slice in its working. The salary after tax pages do the same for common salaries and set the Scottish result beside the rest of the UK. National Insurance has its own thresholds, listed on the National Insurance rates page.
Questions
Is the whole salary taxed at the highest rate it reaches?
No. Each rate applies only to the part of income inside its band. A pay rise that crosses into a new band is taxed at the new rate on the amount above the line.
Who counts as a Scottish taxpayer?
In most cases, a person whose main home is in Scotland. The place of work and the address of the employer do not decide it. HMRC marks Scottish taxpayers with an S at the start of the tax code.
Why does the table show salaries when HMRC lists bands differently?
HMRC gives each band as taxable income, after the personal allowance. The table adds the standard allowance back so each row matches a gross salary.
This is information, not financial advice.