UK Tax Bands 2026/27 Explained

A clear reference to the main UK income-tax bands for 2026/27, including the Personal Allowance, the £100,000 taper, and how progressive tax affects take-home pay.

Last reviewed: 12 July 2026

2026/27 income-tax bands at a glance

For England, Wales and Northern Ireland, the standard Personal Allowance is £12,570. Income above it is generally taxed at 20% up to £50,270, 40% up to £125,140, and 45% above that. These figures apply from 6 April 2026 to 5 April 2027.

Scottish taxpayers use different income-tax bands

This guide and the salary calculator use the standard England, Wales and Northern Ireland income-tax bands. Scottish income-tax rates differ; check HMRC guidance or seek advice before relying on an estimate.

Income-tax bands

Band	Income	Rate
Personal Allowance	Up to £12,570	0%
Basic rate	£12,571–£50,270	20%
Higher rate	£50,271–£125,140	40%
Additional rate	Over £125,140	45%

Personal Allowance and the £100,000 taper

The standard Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000. It is fully withdrawn once adjusted net income reaches £125,140.

That taper can make the marginal tax effect in this range much higher than the headline higher-rate figure. Pension contributions and other reliefs can be relevant, so verify complex cases with HMRC or a qualified adviser.

How progressive tax works

Only the portion of income inside each band is taxed at that band’s rate. Someone earning £60,000 does not pay 40% on all of it: the standard Personal Allowance is tax-free, the next £37,700 is taxed at 20%, and only the remaining amount falls into the higher-rate band.

Use the salary calculator for an estimate with employee National Insurance and optional student-loan repayment. For dividends, use the dividend tax calculator.