Income tax bands 2026/27: rates and thresholds
Income tax bands (often called tax brackets) for 2026/27 in England, Wales and Northern Ireland are: 0% on the first £12,570, 20% up to £50,270, 40% up to £125,140 and 45% above that. Each rate applies only to the slice of income inside its band, so moving into a higher band only affects the part above the threshold. Scotland has its own six bands, set out below.
UK tax rates and bands 2026/27: at a glance
For 2026/27, the four UK tax rates are 0% on the first £12,570 (Personal Allowance), 20% from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above £125,140. Each rate applies only to the slice of income inside the band. Scotland uses its own six-band structure (see below); the rest of this page covers the England, Wales and Northern Ireland rates unless stated otherwise.
UK Income Tax Bands 2026/27
UK income tax for 2026/27 is progressive: each rate applies only to the part of your income inside its band. England, Wales and Northern Ireland have four bands, including the tax-free Personal Allowance. Scotland sets its own.
UK income tax for 2026/27 is progressive: each rate applies only to the part of your income inside its band. England, Wales and Northern Ireland have four bands, including the tax-free Personal Allowance. Scotland sets its own.
Important Note
The Personal Allowance falls by £1 for every £2 of income over £100,000, and is zero from £125,140. The Personal Allowance and the £50,270 higher-rate threshold are frozen until 5 April 2031.
Scottish income tax bands 2026/27
If you live in Scotland, the Personal Allowance is the same £12,570, but the income above it is split into six bands. The 42% higher rate starts at £43,663, which is £6,607 lower than the 40% threshold in the rest of the UK.
| Tax Band | Gross income | Tax 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 £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
For 2026/27 the Welsh Government has set the Welsh rates of income tax at 10p in each band, so Welsh taxpayers pay the same overall rates as in England.
How UK Income Tax is Calculated
Step-by-Step Calculation
- Calculate your total taxable income
- Apply personal allowance (£12,570 tax-free)
- Tax remaining income at applicable rates
- Add up tax from each band
Example: £50,000 Salary
About 15% of the salary. National Insurance and pension contributions are not included.
Tax Planning Strategies
Pension Contributions
Reduce taxable income through pension contributions and receive tax relief at your marginal rate.
ISA Investments
Earn tax-free interest and dividends within your annual ISA allowance (£20,000 for 2026/27).
Salary Sacrifice
Give up part of your salary for extra employer pension contributions, so that part is not taxed as income. The National Insurance rules for salary sacrifice change from 6 April 2029.
Calculate Your Take-Home Pay
Use our free UK tax calculator to see exactly how much tax you'll pay and what your take-home pay will be.