The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. Income tax thresholds for England, Wales and Northern Ireland are frozen at the same levels they have been since 2021, while Scotland raised its starter and basic rate thresholds.
England, Wales and Northern Ireland
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Wales can set its own rates, but for 2026/27 the Welsh rates are the same as England's.
Scotland
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
Scottish rates apply to earnings, pensions and rental income if your main home is in Scotland. Savings and dividend income are taxed at UK rates wherever you live.
How the bands work
Tax is charged in slices: you only pay a higher rate on the part of your income inside that band. Moving into the higher-rate band doesn't make your whole salary taxed at 40%. On £55,000, for example, only £4,730 is taxed at 40%; the rest is taxed at 20% or not at all.
The Personal Allowance taper
Above £100,000 of adjusted net income, the £12,570 Personal Allowance falls by £1 for every £2 of income, disappearing completely at £125,140. That creates an effective 60% tax rate on income between those two figures. Read more in our guide to the 60% tax trap.
Worked examples (England)
- £25,000: (£25,000 − £12,570) × 20% = £2,486 income tax.
- £55,000: £37,700 × 20% = £7,540, plus £4,730 × 40% = £1,892. Total £9,432.
- £110,000: Personal Allowance falls to £7,570, so taxable income is £102,430. £37,700 × 20% = £7,540 plus £64,730 × 40% = £25,892. Total £33,432.
Work out your own figures with the income tax calculator or see everything after National Insurance and pension in the take-home pay calculator.
Last reviewed October 2026.