Rates, thresholds, and allowances for the 2026/27 tax year — everything you need to understand how much income tax you pay and why.
| Band | Taxable Income | Rate | Tax on Full Band |
|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | £0 |
| Basic Rate | £12,571 – £50,270 | 20% | Up to £7,540 |
| Higher Rate | £50,271 – £125,140 | 40% | Up to £29,948 |
| Additional Rate | Above £125,140 | 45% | On everything above |
Every UK taxpayer gets a Personal Allowance — the amount you can earn each year completely free of income tax. For 2026/27 this is £12,570. It has been frozen at this level since April 2021 and is due to remain frozen until April 2028.
The allowance is reduced if your income exceeds £100,000. For every £2 you earn above £100,000, you lose £1 of Personal Allowance. At £125,140 the allowance is gone entirely.
The basic rate of 20% applies to all taxable income between £12,571 and £50,270. This covers most UK workers. If your gross salary is £30,000, your taxable income is £17,430 (£30,000 minus the £12,570 Personal Allowance), and your income tax bill is £3,486.
The higher rate of 40% applies to taxable income between £50,271 and £125,140. If you earn £60,000, only the £9,730 above the £50,270 threshold is taxed at 40%. The rest of your salary is still taxed at 0% and 20% in the bands below.
Higher rate taxpayers can claim additional relief on pension contributions, Gift Aid donations, and certain professional subscriptions.
The additional rate of 45% applies to all taxable income above £125,140. At this level the Personal Allowance has already been fully withdrawn, so the full salary above £125,140 is subject to the 45% charge.
National Insurance (NI) is separate from income tax but comes out of your pay at the same time via PAYE. For employees in 2026/27:
£12,570/yr — no NI below this level
8% on earnings from £12,570 to £50,270
£50,270/yr — rate drops above this
2% on all earnings above £50,270
Self-employed workers pay Class 4 NI at 6% (down from 9% for 2024/25) on profits between £12,570 and £50,270, and 2% above that. Class 2 NI was abolished from April 2024.
| Band | Taxable Income | Scottish Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| 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 | Above £125,140 | 48% |
Check the latest Scottish rates at gov.uk/scottish-income-tax.
Tax bands apply to your taxable income — your gross income minus the Personal Allowance and any reliefs (pension contributions, Gift Aid, etc.). The bands stack sequentially. You never pay the higher rate on money that falls in the basic rate band.
| Salary | Income Tax | NI | Take-Home | Effective Rate |
|---|---|---|---|---|
| £20,000 | £1,486 | £594 | £17,920 | 10.4% |
| £30,000 | £3,486 | £1,394 | £25,120 | 16.3% |
| £40,000 | £5,486 | £2,194 | £32,320 | 19.2% |
| £50,000 | £7,486 | £2,994 | £39,520 | 21.0% |
| £60,000 | £11,432 | £3,211 | £45,357 | 24.4% |
| £80,000 | £19,432 | £3,611 | £56,957 | 28.8% |
| £100,000 | £27,432 | £4,011 | £68,557 | 31.4% |
Select your salary below for a full PAYE breakdown including income tax, National Insurance, effective rate, and monthly figures.
Or use the salary calculator to enter any amount and get an instant take-home figure.
Personal Allowance £0–£12,570 at 0%. Basic Rate £12,571–£50,270 at 20%. Higher Rate £50,271–£125,140 at 40%. Additional Rate above £125,140 at 45%.
The Personal Allowance is £12,570 — the amount you can earn completely free of income tax. It is reduced by £1 for every £2 of income above £100,000, disappearing entirely at £125,140.
Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 earned above £100,000. Combined with the 40% higher rate, the effective marginal rate on income in this band is 60%. Pension contributions can reduce your adjusted net income back below £100,000.
Yes. Scottish taxpayers pay Scottish Income Tax rates set by the Scottish Parliament. Scotland has more bands including a 19% starter rate and a 21% intermediate rate. National Insurance rates are the same across the whole UK.
The higher rate applies to income above £50,270 in 2026/27. You only pay 40% on the slice above that threshold — not on your whole salary. On a £55,000 salary, only £4,730 is taxed at the higher rate.
The thresholds are frozen until April 2028. The Personal Allowance stays at £12,570, the basic rate limit at £50,270, and the additional rate threshold at £125,140. Frozen thresholds mean more people are pulled into higher bands as wages rise — this is called fiscal drag.