UK Income Tax Rates for 2026/27 Tax Year
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. This comprehensive guide covers all the income tax rates, bands, and allowances you need to know.
Personal Allowance 2026/27
The standard Personal Allowance for 2026/27 is £12,570. This is the amount of income you can earn before paying any income tax.
Important: Your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means your Personal Allowance is completely eliminated when your income reaches £125,140.
Income Tax Bands and Rates 2026/27
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Scottish Income Tax Rates 2026/27
If you're a Scottish taxpayer, different rates apply:
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Starter Rate | £12,571 - £14,876 | 19% |
| Basic Rate | £14,877 - £26,561 | 20% |
| Intermediate Rate | £26,562 - £43,662 | 21% |
| Higher Rate | £43,663 - £75,000 | 42% |
| Advanced Rate | £75,001 - £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Worked Examples
Example 1: Salary of £35,000
- Personal Allowance: £12,570 at 0% = £0
- Basic Rate: £22,430 at 20% = £4,486
- Total Income Tax: £4,486 per year
Example 2: Salary of £60,000
- Personal Allowance: £12,570 at 0% = £0
- Basic Rate: £37,700 at 20% = £7,540
- Higher Rate: £9,730 at 40% = £3,892
- Total Income Tax: £11,432 per year
Example 3: Salary of £150,000
- Personal Allowance: £0 (lost due to income over £125,140)
- Basic Rate: £37,700 at 20% = £7,540
- Higher Rate: £74,870 at 40% = £29,948
- Additional Rate: £24,860 at 45% = £11,187
- Total Income Tax: £48,675 per year
Key Changes for 2026/27
- Thresholds remain frozen - Income tax thresholds continue to be frozen, pulling more earners into higher tax bands through "fiscal drag"
- High Income Child Benefit Charge - Threshold increased to £60,000 with a tapered reduction up to £80,000
- Marriage Allowance - Transfer up to £1,260 to a spouse/civil partner
Tax-Efficient Strategies for 2026/27
- Pension contributions - Reduce taxable income and get up to 45% tax relief
- ISA investments - £20,000 annual allowance with tax-free growth
- Salary sacrifice - For pensions, electric cars, or cycle-to-work schemes
- Gift Aid donations - Higher rate taxpayers can claim additional relief
Calculate Your Take-Home Pay
Use our Take-Home Pay Calculator to see exactly what you'll receive after tax, National Insurance, and other deductions for 2026/27.