UK Income Tax Bands 2026/27
The complete reference for UK income tax rates, bands and thresholds for the 2026/27 tax year (6 April 2026 to 5 April 2027). Covers England, Wales, Northern Ireland and Scotland.
Updated for the 2026/27 tax year. All rates sourced from HMRC.
England, Wales & Northern Ireland Income Tax Bands 2026/27
These rates apply to taxpayers in England, Wales and Northern Ireland. Tax is calculated progressively — you only pay the rate on income within each band.
| 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% |
Key point: The basic rate band is £37,700. Added to the £12,570 Personal Allowance, this means you start paying higher rate tax on income above £50,270.
Scottish Income Tax Bands 2026/27
Scotland sets its own income tax rates through the Scottish Parliament. For 2026/27, Scotland has six tax bands compared to three in the rest of the UK. The Personal Allowance (£12,570) is the same across the UK.
| Band | Taxable Income | Tax 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% |
Scotland vs England: Scottish taxpayers pay slightly less on the first £2,306 of taxable income (19% vs 20%), but pay more on income above approximately £28,000 due to the higher Intermediate, Higher, Advanced and Top rates. Scottish tax codes start with an “S” prefix (e.g. S1257L).
Personal Allowance & the £100,000 Taper
The standard Personal Allowance
For 2026/27, every individual gets a Personal Allowance of £12,570. This is the amount you can earn before paying any income tax. The Personal Allowance has been frozen at £12,570 since 2021/22 as part of a government policy to raise revenue without increasing headline tax rates.
The £100,000 taper
If your “adjusted net income” exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above £100,000. This means:
- At £100,000 income: full £12,570 Personal Allowance
- At £110,000 income: £7,570 Personal Allowance (reduced by £5,000)
- At £120,000 income: £2,570 Personal Allowance (reduced by £10,000)
- At £125,140 income: £0 Personal Allowance (fully withdrawn)
This taper creates an effective marginal tax rate of approximately 60% (or 62% including NI) in the £100,000–£125,140 income range. This is known as the 60% tax trap.
The 60% tax trap
Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 earned. The lost allowance is taxed at 40%, adding an effective 20% on top of the 40% higher rate, creating a combined marginal rate of 60% (plus 2% NI = 62%). Read our full guide to the 60% tax trap.
How Tax is Calculated — Worked Examples
Example 1: £35,000 salary (England/Wales/NI)
| Component | Calculation | Amount |
|---|---|---|
| Personal Allowance (0%) | First £12,570 | £0 tax |
| Basic rate (20%) | £22,430 × 20% | £4,486 |
| National Insurance | 8% on £12,571–£35,000 | £1,794 |
| Total deductions | £6,280 | |
| Annual take-home pay | £35,000 − £6,280 | £28,720 |
Effective tax rate: 17.9%. Monthly take-home: £2,393. Full £35K breakdown →
Example 2: £60,000 salary (England/Wales/NI)
| Component | Calculation | Amount |
|---|---|---|
| Personal Allowance (0%) | First £12,570 | £0 tax |
| Basic rate (20%) | £37,700 × 20% | £7,540 |
| Higher rate (40%) | £9,730 × 40% | £3,892 |
| National Insurance | 8% + 2% above UEL | £3,211 |
| Total deductions | £14,643 | |
| Annual take-home pay | £60,000 − £14,643 | £45,357 |
Effective tax rate: 24.4%. Monthly take-home: £3,780. Full £60K breakdown →
Tax Band History: 2020/21 to 2026/27
The table below shows how income tax bands for England, Wales and Northern Ireland have changed (or not) over recent years. Note the “fiscal drag” effect — thresholds frozen while wages rise.
| Tax Year | Personal Allowance | Basic Rate Band | Higher Rate Band | Additional Rate Band |
|---|---|---|---|---|
| 2020/21 | £12,500 | £12,501 – £50,000 at 20% | £50,001 – £150,000 at 40% | Over £150,000 at 45% |
| 2021/22 | £12,570 | £12,571 – £50,270 at 20% | £50,271 – £150,000 at 40% | Over £150,000 at 45% |
| 2022/23 | £12,570 | £12,571 – £50,270 at 20% | £50,271 – £150,000 at 40% | Over £150,000 at 45% |
| 2023/24 | £12,570 | £12,571 – £50,270 at 20% | £50,271 – £125,140 at 40% | Over £125,140 at 45% |
| 2024/25 | £12,570 | £12,571 – £50,270 at 20% | £50,271 – £125,140 at 40% | Over £125,140 at 45% |
| 2026/27 Current | £12,570 | £12,571 – £50,270 at 20% | £50,271 – £125,140 at 40% | Over £125,140 at 45% |
The freeze effect (“fiscal drag”)
The Personal Allowance and basic rate band have been frozen since 2021/22. With average wages rising by approximately 5–6% per year, this freeze pulls more income into higher tax bands each year without any headline tax increase. The additional rate threshold was also reduced from £150,000 to £125,140 in April 2023, bringing more taxpayers into the top rate.
Marriage Allowance
Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your spouse or civil partner, provided:
- You (the transferor) earn less than £12,570 (i.e. you don’t use your full Personal Allowance)
- Your partner (the recipient) is a basic rate taxpayer — they must not earn above £50,270 (or £43,662 in Scotland)
The recipient’s tax bill is reduced by up to £252 per year (20% of £1,260). You can backdate a claim by up to 4 years.
Who benefits? Couples where one partner earns below the Personal Allowance (e.g. not working or working part-time) and the other earns between £12,571 and £50,270. It is not available to higher or additional rate taxpayers.
Blind Person’s Allowance
Blind Person’s Allowance (BPA) is an additional tax-free allowance of £3,250 for the 2026/27 tax year. It is available to anyone who is:
- Registered as blind or severely sight impaired with a local authority in England or Wales, or
- Unable to perform any work for which eyesight is essential (Scotland and Northern Ireland)
BPA is added to your Personal Allowance, giving a total tax-free amount of £15,820 (£12,570 + £3,250). If you cannot use all of the allowance yourself, you can transfer the surplus to your spouse or civil partner.
Source: GOV.UK — Blind Person’s Allowance.
Frequently Asked Questions
What are the UK income tax bands for 2026/27?
What is the Personal Allowance for 2026/27?
What happens to my Personal Allowance if I earn over £100,000?
Are Scottish tax bands different from English tax bands?
How long have tax bands been frozen?
What is Marriage Allowance?
What is Blind Person's Allowance?
How is income tax calculated?
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