UK Income Tax Rates 2026/27 Explained
Exactly how income tax works in England, Wales and Northern Ireland for the 2026/27 tax year — the personal allowance, the three rate bands, the £100,000 taper and worked examples you can follow.
Last updated 27 June 2026 · Written and reviewed by Mustafa Bilgic
Quick income tax estimate
Enter your gross annual salary to see income tax, National Insurance and take-home pay for 2026/27.
Estimate for a standard tax code (1257L), England/Wales/NI. Confirm your own figures on GOV.UK.
The 2026/27 income tax bands at a glance
Income tax in England, Wales and Northern Ireland is charged in slices. You keep the first chunk tax-free, then each higher slice is taxed at a higher rate. For the 2026/27 tax year (6 April 2026 to 5 April 2027) the thresholds are frozen at the same levels as recent years.
| Band | Taxable income | 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% |
Source: GOV.UK — Income Tax rates and Personal Allowances. Scotland sets its own bands and rates.
On a £35,000 salary you pay £4,486 income tax and £1,794.40 National Insurance in 2026/27, leaving take-home pay of about £28,719.60 a year — roughly £2,393 a month.
How the personal allowance works
The personal allowance is the amount you can earn before any income tax is due. For 2026/27 it is £12,570 and is reflected in the standard tax code 1257L. It has been frozen since 2021 and is due to stay frozen — a freeze that quietly pulls more people into tax each year as wages rise, often called "fiscal drag".
There is an important catch for higher earners. Once your adjusted net income passes £100,000, your personal allowance is cut by £1 for every £2 you earn above that line. By £125,140 the allowance has gone entirely, so every pound of income is taxable.
The 60% tax trap explained
Because you lose £1 of tax-free allowance for every £2 earned over £100,000, the slice of income between £100,000 and £125,140 is taxed at an effective 60% marginal rate — you pay 40% on the income itself and a further 20% effect from losing the allowance. Pension contributions and Gift Aid donations reduce your adjusted net income, so paying more into a pension is the classic way to escape this band.
| Salary | Income tax | National Insurance | Take-home |
|---|---|---|---|
| £20,000 | £1,486 | £594.40 | £17,919.60 |
| £30,000 | £3,486 | £1,394.40 | £25,119.60 |
| £50,000 | £7,486 | £2,994.40 | £39,519.60 |
| £60,000 | £11,432 | £3,210.60 | £45,357.40 |
| £100,000 | £27,432 | £4,010.60 | £68,557.40 |
Standard tax code, 2026/27 rates, no pension or salary sacrifice. Figures are illustrative.
A worked example, step by step
Take a £60,000 salary. The tax is built up band by band:
- First £12,570 — personal allowance, taxed at 0% = £0
- Next £37,700 (£12,571 to £50,270) at 20% = £7,540
- Final £9,730 (£50,271 to £60,000) at 40% = £3,892
- Total income tax = £11,432
Only the top slice is taxed at 40% — the rest of your income keeps its lower rates. This is why a pay rise that pushes you into the higher-rate band never leaves you worse off overall. To see your own numbers instantly you can use the income tax calculator on ukcalculator.com, which breaks the figure down band by band for any salary.
Income tax vs National Insurance
Income tax is only half the deduction story. National Insurance is charged separately: employees pay 8% on earnings between £12,570 and £50,270, then 2% on anything above that. The two are taken together through PAYE, which is why your payslip deductions are larger than income tax alone. If you want to see the combined effect on your monthly pay packet, you can work out your monthly take-home pay after both income tax and NI.
Scotland is different
If you live in Scotland you pay Scottish income tax, which has more bands and slightly different rates (a starter rate, basic, intermediate, higher, advanced and top rate). The personal allowance is the same £12,570, but the band thresholds and percentages diverge from the rest of the UK. National Insurance is unchanged because it is set UK-wide.
Frequently asked questions
What is the personal allowance for 2026/27?
The standard personal allowance is £12,570 for 2026/27, the same as previous years because it remains frozen. You pay no income tax on the first £12,570 you earn, unless your income is over £100,000, when the allowance is gradually withdrawn.
What are the income tax rates for 2026/27?
In England, Wales and Northern Ireland the rates are 20% (basic, £12,571 to £50,270), 40% (higher, £50,271 to £125,140) and 45% (additional, above £125,140). Scotland has its own separate bands and rates.
What is the 60% tax trap?
Between £100,000 and £125,140 your personal allowance is withdrawn by £1 for every £2 you earn. Losing the allowance on top of paying 40% tax creates an effective marginal rate of 60% on that slice of income.
Do income tax bands apply to my whole income?
No. Tax is charged slice by slice. Only the part of your income that falls inside a band is taxed at that band's rate, so moving into the higher-rate band never reduces your overall take-home pay.
Is National Insurance separate from income tax?
Yes. National Insurance is a separate deduction with its own thresholds. Employees pay 8% on earnings between £12,570 and £50,270 and 2% above that, on top of income tax.