UK Tax Bands 2026/27: How Much Tax Will You Pay?

UK income tax for 2026/27 (6 April 2026 to 5 April 2027) uses the same personal allowance and band thresholds as 2025/26 in England, Wales, and Northern Ireland: £12,570 tax-free, 20% to £50,270, 40% to £125,140, and 45% above. The thresholds have been frozen since 6 April 2021 and the Autumn Budget 2024 extended the freeze to April 2031 (HMRC). Scottish bands shifted slightly in April 2026; the rest of the UK is unchanged.

This guide explains every UK tax band for 2026/27, shows what you'll pay at each salary level, and breaks down the 60% effective rate that hits earners between £100,000 and £125,140.

Quick summary

• Personal allowance: £12,570 (tax-free, frozen until April 2031)
• Basic rate: 20% on £12,571 – £50,270
• Higher rate: 40% on £50,271 – £125,140
• Additional rate: 45% on income above £125,140
• 60% trap: effective 60% marginal rate between £100,000 – £125,140
• Scotland: separate seven-band system with different rates above ~£14,500

Complete UK tax bands 2026/27

England, Wales & Northern Ireland

Band	Income range	Tax rate	Tax on band
Personal Allowance	£0 – £12,570	0%	£0
Basic Rate	£12,571 – £50,270	20%	Up to £7,540
Higher Rate	£50,271 – £125,140	40%	Up to £29,948
Additional Rate	£125,140+	45%	45% of the excess

Key points:

• Tax-free on the first £12,570
• Total tax at £50,270: £7,540
• Total tax at £125,140: £37,488
• Above £125,140: no personal allowance

Scotland (different rates)

Scotland sets its own income tax bands through the Scottish Parliament. The starter, basic, and intermediate band ceilings rose in April 2026 (Scottish Government, Scottish Budget 2026/27).

Band	Income range	Tax rate
Personal Allowance	£0 – £12,570	0%
Starter Rate	£12,571 – £16,537	19%
Basic Rate	£16,538 – £29,526	20%
Intermediate Rate	£29,527 – £43,662	21%
Higher Rate	£43,663 – £75,000	42%
Advanced Rate	£75,001 – £125,140	45%
Top Rate	£125,140+	48%

Changes from 2025/26: the starter-band ceiling rose from £15,397 to £16,537 and the basic-band ceiling rose from £27,491 to £29,526. Intermediate, higher, advanced, and top bands are unchanged. The personal allowance is set by HMRC and applies UK-wide.

Scottish earners pay more tax than the rest of the UK above roughly £30,000.

How tax bands work

The rate applies only to the slice of income inside each band, not to the whole salary.

Example: £40,000 salary (England)

• First £12,570: 0% = £0
• Next £27,430 (£12,571 – £40,000): 20% = £5,486
• Total income tax: £5,486
• Effective rate: 13.7%

You're in the "basic rate band" but you don't pay 20% on everything.

Example: £60,000 salary (England)

• First £12,570: 0% = £0
• Next £37,700 (basic rate): 20% = £7,540
• Remaining £9,730 (higher rate): 40% = £3,892
• Total income tax: £11,432
• Effective rate: 19.1%

Example: £150,000 salary (England)

• First £12,570: 0% = £0 (personal allowance is fully withdrawn — see 60% trap below)
• Next £37,700: 20% = £7,540
• Next £74,870: 40% = £29,948
• Remaining £24,860: 45% = £11,187
• Total income tax: £48,675
• Effective rate: 32.5%

Tax by salary: quick reference (England, Wales, NI)

Annual salary	Income tax	National Insurance	Total deductions	Take-home	Effective rate
£20,000	£1,486	£594	£2,080	£17,920	10.4%
£25,000	£2,486	£994	£3,480	£21,520	13.9%
£30,000	£3,486	£1,394	£4,880	£25,120	16.3%
£40,000	£5,486	£2,194	£7,680	£32,320	19.2%
£50,000	£7,486	£2,994	£10,480	£39,520	21.0%
£60,000	£11,432	£3,211	£14,643	£45,357	24.4%
£75,000	£17,432	£3,511	£20,943	£54,057	27.9%
£100,000	£27,432	£4,011	£31,443	£68,557	31.4%
£150,000	£48,675	£5,011	£53,686	£96,314	35.8%

National Insurance is 8% between £12,570 and £50,270 then 2% above, unchanged for 2026/27 (HMRC).

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The 60% tax trap explained

Between £100,000 and £125,140, the marginal rate is 60% — not 40% — because the personal allowance tapers away.

How it works

At £100,000:

• Full personal allowance of £12,570

For every £2 earned above £100,000:

• £1 of personal allowance is withdrawn
• That £1 becomes taxable at 40%
• Plus 40% is paid on the £2 of new earnings
• Effective marginal rate: 60%

At £125,140:

• Personal allowance: £0
• All income is taxable; the marginal rate drops back to 40% until £125,140 itself, then 45% above

Worked example

Salary: £110,000

Without allowance loss (hypothetical, full £12,570 PA):

• Taxable income: £97,430
• Income tax: £31,432

With allowance loss (actual £100k+ taper):

• Personal allowance reduced to £7,570 (lost £5,000)
• Taxable income: £102,430
• Income tax: £33,432 (£2,000 more than the hypothetical)

On the £10,000 slice between £100,000 and £110,000:

• £100,000 tax: £27,432
• £110,000 tax: £33,432
• Difference: £6,000
• Marginal rate on that slice: 60%

Ways to step out of the 60% zone

These are factual descriptions of how the bands interact with common tax-relief mechanisms; everyone's circumstances differ, so a tax adviser is the right person to sign off on a personal plan.

1. Pension contributions

• Contributing £10,000 to a pension reduces taxable income to £100,000
• Keeps the full personal allowance
• Headline tax saving: £6,000

2. Salary sacrifice

• Childcare vouchers, electric car schemes, cycle-to-work
• Reduces gross salary below £100,000

3. Gift Aid donations

• Extends the basic-rate band
• Reduces higher-rate liability

4. Timing bonuses

• Splitting a bonus across tax years can keep total income out of the 60% zone in either year

Personal allowance explained

The personal allowance is the amount that can be earned tax-free.

Standard allowance

2026/27: £12,570

Frozen since 6 April 2021. The Autumn Budget 2024 extended the freeze from April 2028 to April 2031 (HMRC).

Impact of the freeze through 2026/27:

• 2021: £12,570
• 2026: £12,570 (same)
• Cumulative CPI inflation 2021–2026: roughly 23%
• Real-terms value of the allowance: about £10,200 in 2021 money
• Fiscal-drag effect: more earners pulled into the basic, higher, and additional rate bands as wages rise with inflation

Reduced allowance above £100,000

The personal allowance tapers for high earners:

Formula:

• For every £2 over £100,000, lose £1 of allowance
• Allowance fully withdrawn at £125,140

Examples:

• £100,000: full £12,570 allowance
• £110,000: £7,570 allowance (lost £5,000)
• £120,000: £2,570 allowance (lost £10,000)
• £125,140+: £0 allowance

Marriage allowance

A spouse or civil partner earning under £12,570 can transfer up to £1,260 (10% of the allowance) to the other partner, provided that partner is a basic-rate taxpayer.

• Transfer: £1,260
• Annual saving: £252 for the receiving partner
• Eligibility: receiving partner must be a basic-rate taxpayer

Applications go through GOV.UK and can be backdated up to four tax years.

Scotland vs England: side-by-side comparison

Scottish residents pay different rates above the personal allowance. The crossover point — where Scottish tax overtakes English tax — sits at roughly £30,000 in 2026/27.

£40,000 salary

Region	Income tax	Take-home (after tax + NI)
England/Wales/NI	£5,486	£32,320
Scotland	£5,551	£32,255

Scotland pays £65 more — a much smaller gap than in 2025/26 because of the April 2026 Scottish band widening.

£60,000 salary

Region	Income tax	Take-home (after tax + NI)
England/Wales/NI	£11,432	£45,357
Scotland	£13,182	£43,607

Scotland pays £1,750 more.

£100,000 salary

Region	Income tax	Take-home (after tax + NI)
England/Wales/NI	£27,432	£68,557
Scotland	£30,732	£65,257

Scotland pays £3,300 more.

Pattern: the Scottish premium widens with income because the higher Scottish rates (42%, 45%, 48%) bite harder than England's 40%/45% at the top end.

Historical context: the tax band freeze

Thresholds have been frozen since April 2021:

Tax year	Personal allowance	Higher rate threshold
2020/21	£12,500	£50,000
2021/22	£12,570	£50,270
2022/23	£12,570	£50,270
2023/24	£12,570	£50,270
2024/25	£12,570	£50,270
2025/26	£12,570	£50,270
2026/27	£12,570	£50,270
2027/28 (planned)	£12,570	£50,270
2028/29 (planned)	£12,570	£50,270
2029/30 (planned)	£12,570	£50,270
2030/31 (planned)	£12,570	£50,270

Freeze runs to April 2031 (Autumn Budget 2024, HMRC).

Fiscal drag in numbers

A worker on £45,000 in 2021 was a basic-rate taxpayer with tax of £6,486. The same role at a salary that has kept pace with CPI (roughly £55,000 by 2026/27) is now a higher-rate taxpayer — paying tax of around £9,432, a 45% increase against a wage rise of about 22%.

The effect compounds every year the freeze runs.

Using our tax calculator

1. Enter your annual salary
2. Select your location (England/Wales/NI or Scotland)
3. Add any pension contributions
4. Include your student loan plan if applicable
5. See the instant breakdown:
   • Income tax
   • National Insurance
   • Student loans
   • Take-home pay
   • Effective tax rate

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Marginal vs effective tax rate

Marginal rate

The rate you pay on the next £1 earned.

• £30,000 salary: marginal rate 20%
• £60,000 salary: marginal rate 40%
• £110,000 salary: marginal rate 60% (the personal-allowance taper)

Effective rate

The total tax paid divided by total income.

• £30,000 salary: £3,486 tax = 11.6% effective
• £60,000 salary: £11,432 tax = 19.1% effective
• £110,000 salary: £33,432 tax = 30.4% effective

The effective rate is always lower than the marginal rate because of the personal allowance and the band structure.

Tax planning levers

These are factual descriptions of how the tax system interacts with common reliefs — not advice. A tax adviser is the right person to confirm what fits any individual situation.

1. Pension contributions

• Reduce taxable income
• Receive tax relief at the marginal rate
• Above £100,000, contributions can sidestep the 60% trap

Example: £110,000 salary, £10,000 pension contribution

• Taxable income reduced to £100,000
• Personal allowance preserved
• Headline tax saving: £6,000
• Net cost of the £10,000 contribution: £4,000

2. Salary sacrifice

Sacrificing salary for non-cash benefits reduces both income tax and National Insurance:

• Childcare vouchers
• Electric car schemes
• Cycle to Work
• Additional pension contributions

3. Splitting income with a spouse

If a partner earns less:

• Marriage allowance transfer (£252/year if eligible)
• Joint investment accounts use both partners' personal savings allowances
• Dividend distribution from a limited company

4. Tax-efficient investments

• ISAs: tax-free growth on up to £20,000 per year
• Pensions: tax relief at the marginal rate
• VCTs and EIS: income tax relief for higher-risk investments

5. Timing large payments

• Bonuses split across tax years to avoid bunching in the 60% zone
• Freelance invoicing timed to smooth annual income
• Pension contributions before the tax year ends

Frequently asked questions

Why do I pay less than my tax band percentage?

You only pay your band rate on income inside that band, not on the whole salary. A basic-rate taxpayer pays 20% only on income above £12,570 — the first £12,570 is tax-free. The effective rate is therefore always lower than the marginal rate.

When will the tax bands rise again?

The current freeze runs to April 2031. Any earlier change would need a Budget announcement. The Autumn Budget 2024 extended the freeze from its previous April 2028 sunset.

Do I pay 40% tax on my whole salary if I earn £60,000?

No. You pay 0% on the first £12,570, 20% on the next £37,700, and 40% only on the remaining £9,730. The effective rate is about 19%.

What is the 60% tax trap?

Between £100,000 and £125,140, the personal allowance reduces by £1 for every £2 earned, creating an effective 60% marginal rate on that slice. Pension contributions or salary sacrifice that brings taxable income below £100,000 sidesteps the trap.

Are Scottish tax bands higher?

Above roughly £30,000, yes. Scotland has seven bands with rates of 19%, 20%, 21%, 42%, 45%, and 48%. A £60,000 salary pays £1,750 more income tax in Scotland than in England for 2026/27.

Can I get my personal allowance back if I earn over £125,140?

No. Once income reaches £125,140, the personal allowance is fully withdrawn and stays at £0 regardless of how much higher the salary goes.

How does marriage allowance work?

If one partner earns under £12,570 and the other is a basic-rate taxpayer, the lower earner can transfer £1,260 of allowance to their spouse, saving the household £252 per year. Apply via GOV.UK; the claim can be backdated four years.

What's the difference between marginal and effective tax rates?

Marginal is the rate on the next £1 earned (e.g. 40% if you're a higher-rate taxpayer). Effective is the total tax divided by total income (e.g. 19% on a £60,000 salary including the personal allowance). The two diverge most inside the £100,000–£125,140 trap, where marginal is 60% but effective is around 30%.

Related resources

• Take-Home Pay Calculator — see your net salary
• Income Tax 2025/26 Guide — detailed 2025/26 tax-year calculations
• National Insurance 2025/26 Guide — NI rates explained
• Tax Calculator — calculate your total deductions

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Official sources:

• HMRC: Income Tax rates and allowances
• HMRC: Tax on your income
• Scottish Government: Scottish Income Tax
• HMRC: Autumn Budget 2024 — personal allowance freeze extension

Last updated: 24 June 2026. Reflects 2026/27 personal allowance and band thresholds for England/Wales/NI, updated Scottish bands effective 6 April 2026, NI rates unchanged for 2026/27, and the freeze extension to April 2031 announced in Autumn Budget 2024.

Disclaimer: Bands apply to the 2026/27 tax year (6 April 2026 – 5 April 2027). Rates are subject to government policy changes. Scottish rates are set by the Scottish Parliament. UK Calculator provides information and calculation tools and is not a tax adviser.