United Kingdom Tax Brackets 2026/27
For 2026/27, UK income tax applies at 20% up to £50,270, 40% from £50,271 to £125,140, and 45% above — with a £12,570 personal allowance frozen since 2021/22.
Verified against HMRC — Income Tax rates and allowances (gov.uk). Reviewed by Anastasiia Skuratova, ACA (ICAEW).
United Kingdom · 2026/27 · Summary
In the United Kingdom for tax year 2026/27, income tax uses three progressive bands: 20% (basic rate) on taxable income up to £37,700, 40% (higher rate) on £37,701–£125,140, and 45% (additional rate) above £125,140. Every taxpayer gets a £12,570 personal allowance — income within this allowance is tax-free. If adjusted net income exceeds £100,000, the allowance tapers by £1 for every £2 above that figure.
2026/27 United Kingdom income tax brackets
| Taxable income | Rate | Cumulative tax |
|---|---|---|
| Up to £37,700 | 20% | £7,540 |
| £37,700 – £112,570 | 40% | £37,488 |
| Over £112,570 | 45% | — |
Income tax only. Source: HMRC gov.uk. Brackets apply to taxable income after the £12,570 personal allowance. NI contributions are shown separately in the breakdown.
Are United Kingdom tax brackets changing in 2026/27?
The 2026/27 income tax rates and the personal allowance (£12,570) are unchanged from 2025/26, as confirmed in the Spring 2026 Budget. The basic rate threshold (£50,270) and additional rate threshold (£125,140) are also frozen. The personal allowance and basic rate threshold have been frozen since 2021/22 and are scheduled to remain frozen until at least 2027/28. This 'fiscal drag' pushes more taxpayers into the higher rate as wages increase.
| Threshold / parameter | Previous year | 2026/27 | Change |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | No change (frozen since 2021/22) |
| Basic rate upper (income) | £50,270 | £50,270 | No change (frozen) |
| Higher/additional threshold | £125,140 | £125,140 | No change (frozen) |
| NI primary threshold | £12,570 | £12,570 | No change |
| NI main rate | 8% | 8% | No change |
United Kingdom tax at common income levels (2026/27)
Computed by the Tax Atlas engine from official 2026/27 rates. Default filing status; no additional deductions or credits.
| Gross income | Taxable income | Total tax | Take-home | Eff. rate |
|---|---|---|---|---|
| £20,000 | £7,430 | £2,080 | £17,920 | 10.4% |
| £50,270 | £37,700 | £10,556 | £39,714 | 21.0% |
| £80,000 | £67,430 | £23,043 | £56,957 | 28.8% |
| £105,000 | £94,930 | £34,543 | £70,457 | 32.9% |
| £200,000 | £200,000 | £82,842 | £117,158 | 41.4% |
Step-by-step: £80,000 gross
Use the income tax calculator for a personalised calculation with your exact income, filing status, and deductions.
How United Kingdom tax brackets work
UK income tax is applied to your taxable income — gross income minus the £12,570 personal allowance. The allowance is not a bracket; it is income you keep entirely. Above the allowance, the 20% basic rate applies to taxable income up to £37,700 (total income up to £50,270). The 40% higher rate then applies until the additional rate threshold of £125,140.
A notable quirk: if your adjusted net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 above that threshold and eliminated entirely at £125,140. This creates an effective 60% marginal tax rate between £100,000 and £125,140 — 40% income tax plus 20p of personal allowance lost per pound. Many higher earners use salary-sacrifice pension contributions to bring their adjusted net income below £100,000 and reclaim the full allowance.
National Insurance contributions run alongside income tax but use their own thresholds. Class 1 employee NI is 8% on earnings between £12,570 and £50,270, and 2% above £50,270. NI contributions do not interact with the personal allowance and cannot be reduced by it.
These brackets apply to England, Wales, and Northern Ireland. Scotland uses the Scottish Rate of Income Tax (SRIT) with different bands — a Scotland-specific calculator is on the Tax Atlas roadmap.
United Kingdom tax: key rules and exceptions
The £100,000 personal allowance taper creates one of the UK's most counter-intuitive tax effects. For every £2 of adjusted net income above £100,000, the £12,570 personal allowance is reduced by £1. Between £100,000 and £125,140, the effective income tax marginal rate is 60% — 40% income tax plus 20p lost of tax-free allowance per pound. Many higher earners reduce adjusted net income below £100,000 via salary-sacrifice pension contributions to recover the full allowance.
Scotland uses a separate tax system — the Scottish Rate of Income Tax (SRIT) — with six bands including a 19% starter rate, 20% basic, 21% intermediate, 42% higher, 45% advanced, and 48% top rate. Scottish taxpayers receive the same personal allowance (£12,570) but at substantially different band thresholds. This calculator covers England, Wales, and Northern Ireland only.
Marriage Allowance allows a non-taxpayer to transfer £1,260 of their personal allowance to a basic-rate spouse, saving the couple £252 per year. Blind Person's Allowance (£3,070 in 2026/27) provides an additional allowance for registered blind individuals — worth £614 in tax relief at the basic rate.
How do tax brackets work? (Common misconception)
A common misconception is that earning more can leave you worse off — that crossing into a higher bracket means more of your income gets taxed at a higher rate. This is not how progressive taxation works.
Each bracket applies only to the income that falls within its range. If your income crosses into a higher bracket, only the amount above the threshold is taxed at the higher rate — not your entire income. A higher salary always means higher take-home pay.
Your marginal rate is the rate on your last dollar earned. Your effective rate is total tax divided by gross income — always lower than your marginal rate. See the marginal tax rate and effective tax rate glossary entries.
Calculate your exact United Kingdom tax
Enter your income for a full breakdown including all deductions, credits, and social contributions.
Frequently asked questions
- How do UK income tax brackets work in 2026/27?
- UK income tax is applied to your taxable income (gross minus personal allowance). The first £12,570 is tax-free. The next £37,700 (up to total income of £50,270) is taxed at 20%. Income between £50,271 and £125,140 is taxed at 40%. Income above £125,140 is taxed at 45%. Only the income within each band is taxed at that band's rate.
- What is the 60% trap and who does it affect?
- When adjusted net income exceeds £100,000, the personal allowance reduces by £1 per £2. This means income in the £100,000–£125,140 range is effectively taxed at 60% (40% income tax + 20p of personal allowance lost). It affects anyone whose salary, bonus, or investment income pushes them above £100,000. Pension contributions made via salary sacrifice can reduce adjusted net income below this threshold.
- Are income tax and National Insurance the same thing?
- No. Income tax and National Insurance (NI) are separate deductions. NI Class 1 is 8% on earnings between £12,570 and £50,270 and 2% above £50,270. NI uses its own thresholds, has its own ceiling, and goes to the National Insurance Fund rather than general taxation. Both are included in this calculator.
- Why haven't UK brackets changed for several years?
- The government announced a freeze on the personal allowance and basic rate threshold from 2021/22 until at least 2027/28. With wages rising due to inflation, more taxpayers are pulled into the higher rate without any rate changes — a phenomenon called 'fiscal drag'. The IFS estimates millions of additional higher-rate taxpayers will result from this freeze.
- When is the UK tax year?
- The UK tax year runs from 6 April to 5 April the following year. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. For PAYE employees, tax is collected throughout the year via payslip deductions. Self-assessment filers must submit their return and pay any balance by 31 January 2028.