UK Income Tax Bands 2026/27 – Full Guide to Rates and Allowances

Understanding how much income tax you pay starts with knowing the bands and thresholds that apply to your earnings. For the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027, the core rates have remained unchanged from recent years, though the freeze on personal allowances continues to affect millions of taxpayers across England, Wales, Northern Ireland, and Scotland.

The standard personal allowance sits at £12,570, a figure that has not moved since 2021/22. Above that, the basic rate of 20 per cent applies to income up to £50,270, followed by the higher rate of 40 per cent on earnings between £50,271 and £125,140. Any income beyond that attracts the additional rate of 45 per cent. Scotland operates its own distinct set of bands, with a top rate of 48 per cent for the highest earners.

Because these thresholds are frozen until 2030/31 under current government policy, wage inflation is gradually pulling more people into higher tax brackets — a phenomenon known as fiscal drag. This guide lays out the exact figures, explains how the personal allowance tapers for high earners, traces how rates have changed over the decades, and looks at what may lie ahead under the Labour government.

What are the UK income tax bands for 2026/27?

The table below summarises the four main bands that apply to non-savings, non-dividend income for taxpayers in England, Wales, and Northern Ireland. Scottish residents should refer to the separate section further down.

These are the UK-wide bands for non-savings income. Scotland has separate bands (see section below).

• The personal allowance has been frozen at £12,570 since 2021/22, leading to fiscal drag.
• Scotland’s six-band system means higher earners there pay up to 48% compared to 45% in England.
• Tax bands are not indexed to inflation; future freezes could push more people into higher brackets.
• The additional rate threshold (£125,140) aligns with the point where personal allowance is fully withdrawn.
• Historical data shows the current top rate of 45% is lower than the 83% top rate in 1978.

These bands are confirmed by HMRC for 2026/27. The figures match the official rates published on GOV.UK, and are cross-referenced by MoneySavingExpert and Deloitte.

What is the personal tax allowance for 2026/27?

The standard personal allowance is £12,570, meaning you pay no income tax on the first £12,570 of taxable income. This amount has been frozen since the 2021/22 tax year and is set to remain at this level until at least 2030/31.

Standard allowance: £12,570

Every basic-rate taxpayer in England, Wales, and Northern Ireland receives this allowance. It is not means-tested for those earning under £100,000. It works out to roughly £242 per week or £1,048 per month, according to HMRC employer guidance.

Income above £100,000: allowance reduced

If your adjusted net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 of income over that threshold. The allowance is fully withdrawn once your income reaches £125,140. In the taper zone between £100,000 and £125,140, the effective marginal rate rises to 60 per cent because you lose the tax-free allowance while also paying higher-rate tax on the earnings.

Marriage allowance and blind person’s allowance

Marriage allowance lets married couples and civil partners transfer up to £1,260 of the unused personal allowance to their spouse, provided the transferring partner is a basic-rate taxpayer. This can save the receiving partner up to £252 per year. The blind person’s allowance for 2026/27 is £3,250, up from £3,130 in the previous year.

How do I calculate my income tax?

Calculating your income tax involves a straightforward sequence: start with your gross income, deduct the personal allowance, then apply the appropriate tax rate to each slice of remaining income.

Step-by-step: gross income minus personal allowance

Take your total taxable income from all sources — salary, self-employment, pensions, rental income, and so on. Subtract the personal allowance of £12,570 (or the reduced amount if you earn over £100,000). The remaining figure is your taxable income.

Apply tax bands to remaining income

The first portion of taxable income (up to £50,270) is taxed at 20 per cent. The next slice (from £50,271 to £125,140) is taxed at 40 per cent. Any amount above that is taxed at 45 per cent. Each band applies only to the income within that range, not to your total earnings.

Include savings and dividend allowances

Savings income benefits from a starting rate of 0 per cent on up to £5,000, though this is reduced if you have other income above the personal allowance. Dividend income has its own allowances and rates: the first £500 of dividends is tax-free, and dividends above that are taxed at 8.75 per cent (basic rate), 33.75 per cent (higher rate), or 39.35 per cent (additional rate).

Use the official HMRC calculator or MoneyHelper tool

The simplest way to get an accurate figure is to use the official GOV.UK Income Tax Calculator, which covers 2026/27 and allows you to input salary, deductions, and pension contributions. The MoneyHelper site also provides impartial guidance and a step-by-step breakdown. For side-by-side comparisons of England and Scotland, Interactive Investor offers dedicated tools.

What are the income tax bands in Scotland?

Scotland sets its own income tax bands through the Scottish Parliament. While the personal allowance aligns with the rest of the UK at £12,570, the rates and thresholds above that level differ considerably. For 2026/27, Scotland has six separate bands, with a top rate of 48 per cent.

Starter rate: 19% (£12,571 – £16,537)

The first tier above the personal allowance is the starter rate, set at 19 per cent. This is lower than the 20 per cent basic rate that applies in England, but covers a relatively narrow income band.

Basic and intermediate rates: 20% and 21%

Income between £16,538 and £29,526 is taxed at the Scottish basic rate of 20 per cent. The intermediate rate of 21 per cent then applies to earnings from £29,527 up to £43,662. These two bands together mean that Scottish taxpayers on moderate incomes face slightly higher rates than their counterparts in England.

Higher, advanced, and top rates: 42%, 45%, and 48%

The higher rate of 42 per cent applies to income from £43,663 to £75,000. For earnings between £75,001 and £125,140, the advanced rate of 45 per cent kicks in. Any income above £125,140 is subject to the top rate of 48 per cent — three percentage points higher than the additional rate in the rest of the UK.

How have UK income tax rates changed over time?

The current structure of four UK-wide bands has evolved significantly over the past five decades. Top rates have fallen dramatically since the 1970s, while the personal allowance has risen substantially in cash terms.

1970s to 1980s: from high top rates to reform

In 1973, the top rate of income tax stood at 83 per cent on earned income, with a basic rate of 30 per cent. Investment income could attract an additional surcharge, pushing the effective top rate to 98 per cent. Margaret Thatcher’s government cut the top rate to 60 per cent in 1979 and then to 40 per cent in 1988, while the basic rate fell to 25 per cent.

1990s to 2000s: new bands and a 10% starting rate

The 1999 Budget introduced a 10 per cent starting rate on the first band of taxable income, a move designed to help lower earners. The basic rate was reduced to 22 per cent and then to 20 per cent by 2008. The personal allowance rose steadily during this period, reaching £6,475 by 2010.

2010s to present: the 50% top rate and the freeze era

In 2010, a new additional rate of 50 per cent was introduced on income over £150,000. This was cut to 45 per cent in 2013. The personal allowance increased sharply from £6,475 in 2010 to £12,500 by 2020, and then to £12,570 in 2021 where it has remained frozen since. The higher-rate threshold was reduced from £150,000 to £125,140 in 2023/24, pulling more higher earners into the additional rate band.

For a fuller record, see the official HMRC historical rate tables. These show the personal allowance and each band threshold for every tax year going back decades.

What were the UK income tax bands for 2022/23?

For the 2022/23 tax year, the bands were slightly different from today. The personal allowance was already £12,570, and the basic rate threshold was £50,270. However, the higher rate extended up to £150,000, and the additional rate of 45 per cent only applied to income above that level. It was not until 2023/24 that the higher-rate threshold was reduced to £125,140, aligning the point at which the personal allowance is fully withdrawn with the start of the additional rate.

1. 1973: Top rate 83%, basic rate 30%.
2. 1979: Top rate cut to 60% under Thatcher.
3. 1988: Top rate reduced to 40%, basic rate 25%.
4. 1999: Introduction of 10% starting rate.
5. 2010: Personal allowance £6,475, basic rate 20%, higher rate 40%, additional rate 50%.
6. 2013: Additional rate reduced to 45%.
7. 2020: Personal allowance raised to £12,500.
8. 2021: Personal allowance frozen at £12,570.
9. 2026/27: Bands unchanged from previous year; Scottish rates increased to 48% top rate.

Will the personal tax allowance increase under Labour?

As of May 2026, the Labour government has extended the freeze on the personal allowance at £12,570 until at least April 2031, a policy inherited from the previous Conservative administration. No increase has been announced for the current parliament beyond that timeline.

Speculation about Labour increasing the personal allowance to £13,000 or more is unconfirmed. The party has not released detailed tax plans for the next parliament beyond existing manifesto pledges. Post-2031, thresholds are scheduled to resume inflation-linking based on CPI, but this depends on fiscal headroom and future Budget decisions.

What is fiscal drag and how does it affect taxpayers?

Fiscal drag occurs when tax thresholds are not adjusted for inflation, causing more income to become taxable or to be taxed at higher rates as wages rise. With the personal allowance and all main bands frozen until 2030/31, the Office for Budget Responsibility has estimated that millions of additional taxpayers will be pulled into the higher and additional rate bands over the course of the freeze.

The impact falls across the workforce: PAYE employees, self-employed directors, sole traders, pensioners with occupational pensions, and landlords with rental income all see a rising effective tax rate over time. The dividend tax allowance has already been cut to £500, and dividend rates rose by 1 per cent in 2024/25, adding to the overall tax burden for investors.

Compared with other developed economies, the UK’s top rate of 45 per cent is moderate — the European average is around 45-47 per cent — but the threshold at which it kicks in (£125,140) is relatively low by international standards. This means upper-middle earners in the UK face the top rate sooner than their counterparts in many EU countries.

Where can I find official UK income tax rates and guidance?

The most authoritative source for current and historical rates is the official GOV.UK Income Tax rates page, maintained by HMRC. It includes the full band structure, personal allowance details, and links to the employer threshold tables.

“The standard Personal Allowance is £12,570. This is the amount of income you can have before you start paying Income Tax.”

GOV.UK – Income Tax rates and Personal Allowances

“For the 2026/27 tax year, the Scottish starter rate will be 19%, basic rate 20%, intermediate rate 21%, higher rate 42%, advanced rate 45% and top rate 48%.”

MoneyHelper – How Income Tax works in Scotland

“The additional rate of 45% applies to taxable income over £125,140. This threshold has not changed since 2021.”

PwC Tax Summaries – United Kingdom

Independent sources such as PwC Tax Summaries, MoneySavingExpert, and Fidelity provide cross-verified summaries that are useful for comparison. For Scottish-specific data, the Rift Refunds guide offers a clear breakdown of the six-band system and includes a calculator for reclaiming overpaid tax due to the personal allowance taper.

What do I need to know about UK income tax bands for 2026/27?

The 2026/27 tax year sees no change to the headline rates or thresholds for England, Wales, and Northern Ireland. The personal allowance remains £12,570, the basic rate band ends at £50,270, the higher rate runs to £125,140, and the additional rate applies above that. Scotland continues with its own more granular structure, topping out at 48 per cent. The freeze on all thresholds until 2030/31 means that fiscal drag is steadily increasing the tax take as wages rise, making it more important than ever to understand exactly which band applies to your income. For the latest updates, bookmark the official UK Income Tax Bands 2026/27 page and check back after each Budget for any changes.

Frequently asked questions about UK income tax bands