UK Income Tax Bands 2026/27 Explained
For the 2026/27 tax year (6 April 2026 to 5 April 2027), most people in England, Wales and Northern Ireland pay Income Tax at three rates: 20%, 40% and 45%. The first £12,570 of income is tax-free, and each rate applies only to the slice of income that falls inside its band. Scotland sets its own bands, so this guide does not apply to Scottish taxpayers.
The short answer
- Personal Allowance: £12,570 of tax-free income.
- Basic rate, 20%: income from £12,571 to £50,270.
- Higher rate, 40%: income from £50,271 to £125,140.
- Additional rate, 45%: income over £125,140.
- Compared with last year: all three rates and thresholds are unchanged from 2025/26.
Income Tax bands for 2026/27
| Band | Income (standard allowance) | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The table follows GOV.UK and assumes the standard Personal Allowance of £12,570. It applies to England, Wales and Northern Ireland. If your adjusted net income is over £100,000, your allowance shrinks (see below).
How the bands work
Income Tax is charged in slices, not on your whole income. The first £12,570 is tax-free. The next £37,700 is taxed at 20%, which takes you up to £50,270 (£12,570 plus £37,700). Income above £50,270 is taxed at 40% up to £125,140, and anything above £125,140 is taxed at 45%.
Tax = 20% of the first £37,700 + 40% of the next slice up to £125,140 + 45% of the rest
Example, £60,000 a year. Taxable income is £47,430 (£60,000 minus £12,570). The first £37,700 is taxed at 20%, which is £7,540. The remaining £9,730 is taxed at 40%, which is £3,892. Income Tax is £11,432, about 19.1% of £60,000.
That is why earning over £50,270 does not mean paying 40% on everything. Only the part above the threshold is taxed at the higher rate.
Income Tax on common incomes (2026/27)
| Income | Personal Allowance | Taxable income | Income Tax | Share of income |
|---|---|---|---|---|
| £20,000 | £12,570 | £7,430 | £1,486 | 7.4% |
| £30,000 | £12,570 | £17,430 | £3,486 | 11.6% |
| £40,000 | £12,570 | £27,430 | £5,486 | 13.7% |
| £50,270 | £12,570 | £37,700 | £7,540 | 15.0% |
| £60,000 | £12,570 | £47,430 | £11,432 | 19.1% |
| £80,000 | £12,570 | £67,430 | £19,432 | 24.3% |
| £100,000 | £12,570 | £87,430 | £27,432 | 27.4% |
| £110,000 | £7,570 | £102,430 | £33,432 | 30.4% |
| £150,000 | £0 | £150,000 | £53,703 | 35.8% |
Income Tax only, for England, Wales and Northern Ireland. The figures assume all income is from employment, the standard tax code (1257L), and no pension contributions, benefits in kind or other income. National Insurance and student loan repayments are not included. They are an estimate, not a payslip.
The £100,000 Personal Allowance trap
GOV.UK says your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000, and it is zero at £125,140 or above. Each extra £2 of income is taxed at 40%, which is 80p, and the £1 of allowance you lose is also taxed at 40%, which is another 40p. That is £1.20 of tax on every extra £2, an effective rate of about 60% in that range.
Going from £100,000 to £110,000 shows it. Income Tax rises from £27,432 to £33,432, so £6,000 of tax is due on the extra £10,000. Your Personal Allowance at £110,000 is £7,570. Adjusted net income can be lower than your salary, for example after certain pension contributions or Gift Aid donations, so check how it is worked out on GOV.UK.
Why the thresholds matter more over time
The Personal Allowance has been fixed at £12,570 since 2021/22, and the House of Commons Library says it is due to stay there until April 2031. The basic rate band is also fixed at £37,700, so the 40% rate keeps starting at £50,270. When pay rises and the thresholds do not, more of a person's income falls above the allowance and into the higher bands. Thresholds can change at a Budget, so check GOV.UK for the current figures.
Scotland has different bands
Scotland sets its own Income Tax bands and rates, so the table above does not apply to Scottish taxpayers. GOV.UK states that Income Tax bands are different if you live in Scotland, and lists one set of bands for everyone else. The UK Take-Home Pay Calculator has a Scotland option.
What the bands do not cover
- National Insurance is a separate deduction from pay, with its own rates and thresholds. See our UK National Insurance guide and National Insurance Calculator, or GOV.UK: National Insurance.
- Savings interest and dividends have their own tax-free allowances and rules. See GOV.UK on savings interest and dividends.
- Your tax code. Most employees get their Personal Allowance through their tax code. The standard code, 1257L, reflects the £12,570 allowance, but yours can differ.
- Reliefs and other allowances such as Marriage Allowance, pension tax relief and the trading allowance can lower the tax you owe.
UK Income Tax questions answered
What are the UK Income Tax rates for 2026/27?
In England, Wales and Northern Ireland the rates are 20% (basic), 40% (higher) and 45% (additional). The first £12,570 of income is tax-free, the basic rate applies up to £50,270, the higher rate up to £125,140, and the additional rate above that. Scotland has its own bands.
How much can I earn before paying Income Tax?
The standard Personal Allowance is £12,570 for 2026/27. It goes down by £1 for every £2 of adjusted net income above £100,000 and is zero at £125,140 or above.
At what income do I start paying 40% tax?
With the standard Personal Allowance, the 40% rate applies to income above £50,270. That is the £12,570 allowance plus the £37,700 basic rate band.
If I earn over £50,270, is all my income taxed at 40%?
No. Only the part of your income above £50,270 is taxed at 40%. The income below that is still taxed at 0% and 20% as before, so a pay rise never takes you home less because of a higher band.
Have the Income Tax bands changed for 2026/27?
No. The House of Commons Library confirms that all three rates and thresholds are unchanged from 2025/26, and the Personal Allowance is due to stay at £12,570 until April 2031.
Are Scottish Income Tax bands the same?
No. GOV.UK says Income Tax bands are different if you live in Scotland. The bands in this guide apply to England, Wales and Northern Ireland.
Sources
- GOV.UK: Income Tax rates and Personal AllowancesOfficial 2026/27 Personal Allowance, rates, bands and the £100,000 allowance reduction.
- GOV.UK: Previous tax yearsThe 2025/26 rates and bands, used to confirm that the 2026/27 figures are unchanged.
- House of Commons Library: Direct taxes, rates and allowances for 2026/27The £37,700 basic rate band, the unchanged rates and thresholds, and the freeze to April 2031.
- GOV.UK: Adjusted net incomeHow adjusted net income is worked out for the Personal Allowance reduction.
- GOV.UK: Check your Income TaxHMRC's service for employees and pensioners to see their allowance, tax code and tax paid.
- GOV.UK: Tax codesWhat tax codes mean and how they apply your Personal Allowance.
Good to know
This guide is general information, not tax or financial advice. What you actually pay depends on your tax code, other income, pension contributions and where you live in the UK. Rates were last checked against GOV.UK on 2 October 2026. To see your own position, use HMRC's Check your Income Tax service or ask a qualified adviser.