UK Tax Bands 2026/27
Master UK income tax with our complete guide to tax bands, personal allowances, and tax planning strategies for 2026/27.
UK Income Tax Bands 2026/27
UK income tax for the 2026/27 tax year uses a progressive system with four main tax bands. Understanding these bands is crucial for effective tax planning and maximising your take-home pay.
2026/27 Tax Bands
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £37,700 | 20% |
| Higher Rate | £37,701 - £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Important Note
The personal allowance is frozen until April 2031. However, it reduces by £1 for every £2 of income over £100,000, potentially reducing it to zero for high earners.
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
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
Exchange salary for benefits before tax, potentially reducing your tax band.
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.