Income Tax bands 2026/27

The rates, the thresholds and how the allowance shrinks above £100,000.

The short answer

For 2026/27 in England, Wales and Northern Ireland, you can earn £12,570 tax-free (the Personal Allowance). Next come 20% on income up to £50,270 (the basic rate band is £37,700 on top of your allowance), 40% up to £125,140 and 45% above that. Scotland has its own bands and rates.

The bands at a glance (England, Wales and Northern Ireland)

Personal Allowance: £12,570 at 0%.
Basic rate: 20% on the next £37,700 of taxable income, so up to £50,270 in total.
Higher rate: 40% on taxable income above £37,700, up to £125,140 in total income.
Additional rate: 45% on income over £125,140.
The bands apply to taxable income, which is your income minus your allowances, not just your salary.

The allowance shrinks at £100,000

Once your adjusted net income goes over £100,000, your Personal Allowance falls by £1 for every £2 you earn above that, so it is gone completely at £125,140. This makes the effective rate in that band much higher than 40%. See the Personal Allowance explained and £100,000 salary after tax.

Savings and dividends have their own rules

The starting rate for savings is 0% on up to £5,000 of savings income, but it reduces by £1 for every £1 of other income above your Personal Allowance.
The dividend allowance is £500. Dividends above it are taxed at 10.75% (basic), 35.75% (higher) and 39.35% (additional rate).
See how savings interest is taxed and tax on shares explained.

Scotland and other allowances

Scotland sets its own Income Tax bands and rates for most income, which differ from the figures above, so Scottish taxpayers should check the Scottish rates on GOV.UK.
The Blind Person's Allowance is £3,250 for 2026/27.
The Married Couple's Allowance is up to £11,700, with a minimum of £4,530, for some couples where one was born before 6 April 1935. See Marriage Allowance explained.
National Insurance is separate, see how National Insurance works.

Where to learn more

This guide is for information only and is not tax, benefits or financial advice. Rules and amounts can change, so check the official pages before you rely on them.