UK Income Tax Rates and Bands 2026/27: Complete Reference
Rest-of-UK and Scottish rates. Verified against gov.uk and Scottish Government. Updated 17 April 2026.
England, Wales, and Northern Ireland: 2026/27 income tax bands
| Band | Taxable income | Rate | Notes |
|---|---|---|---|
| Personal allowance | £0 to £12,570 | 0% | Frozen since April 2021. Reduced above £100,000. |
| Basic rate | £12,571 to £50,270 | 20% | Taxable income £0 to £37,700 above PA |
| Higher rate | £50,271 to £125,140 | 40% | Taxable income £37,701 to £112,570 |
| Additional rate | Over £125,140 | 45% | Taxable income over £112,570; PA fully withdrawn |
Source: gov.uk/income-tax-rates. Verified 17 April 2026.
Scotland: 2026/27 income tax bands
| Band | Gross income | Rate | Change |
|---|---|---|---|
| Personal allowance | Up to £12,570 | 0% | Unchanged |
| Starter rate | £12,571 to £16,537 | 19% | Unchanged |
| Basic rate | £16,538 to £29,526 | 20% | Unchanged |
| Intermediate rate | £29,527 to £43,662 | 21% | Unchanged |
| Higher rate | £43,663 to £75,000 | 42% | Unchanged |
| Advanced rate | £75,001 to £125,140 | 45% | Unchanged |
| Top rate | Over £125,140 | 48% | Up from 47% |
Source: mygov.scot/scottish-income-tax. Verified 17 April 2026.
Full Scottish rates referencePersonal allowance and the taper
The personal allowance is £12,570 for 2026/27. This is unchanged from 2025/26 and from every year back to 2021/22. The allowance has been frozen as a deliberate fiscal policy since April 2021. As wages have grown, more of the population has moved into the income tax net (or into higher bands) without any formal rate change. This is sometimes called "fiscal drag" or "stealth tax".
Personal allowance taper (the 60% trap)
Once your income exceeds £100,000, the personal allowance is withdrawn at £1 for every £2 of income above £100,000. At £125,140, the allowance is fully withdrawn. Combined with the 40% higher-rate income tax, this creates an effective marginal rate of 60% on income between £100,000 and £125,140 (or 62% if NI is also in the main band, though at these income levels NI is at the 2% upper rate).
National Insurance 2026/27
| Class | Who pays | Earnings/profits | Rate |
|---|---|---|---|
| Class 1 (employee) | Employees (PAYE) | £12,570 to £50,270 (8%); above £50,270 (2%) | 8% / 2% |
| Class 1 (employer) | Employers | Above £96/week (£5,000/year) | 15% |
| Class 2 (SE) | Self-employed (voluntary) | Profits above £12,570 | £3.45/week |
| Class 4 (SE) | Self-employed | £12,570 to £50,270 (9%); above (2%) | 9% / 2% |
What changed from 2025/26 to 2026/27?
- Rest-of-UK income tax bands: unchanged. Personal allowance remains £12,570. Basic-rate threshold remains £50,270. Higher-rate threshold remains £125,140.
- Scottish top rate: increased from 47% to 48% on income over £125,140 gross.
- Student loan Plan 2 threshold: increased from approximately £28,470 (2025/26) to £29,385.
- Plan 5 first year: the first cohort of Plan 5 borrowers (those who started their courses in August 2023) began PAYE repayments in April 2026.