For 2026/27 in England, Wales and Northern Ireland, the first £12,570 is tax-free. You pay 20% from £12,571 to £50,270, 40% from £50,271 to £125,140 and 45% above £125,140. The personal allowance shrinks by £1 for every £2 of income over £100,000. Scotland has six bands, from 19% to 48%. All these thresholds are frozen until April 2031.
Income Tax Bands for England, Wales and Northern Ireland (2026/27)
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Bands assume the full £12,570 personal allowance. Above £100,000 the allowance is tapered away, so the higher-rate band effectively starts lower.
Wales sets its own Welsh rates of income tax, but for 2026/27 they give the same totals as England: 20%, 40% and 45%. Northern Ireland uses the England bands.
Each rate applies only to the slice of income inside that band. A pay rise that takes you over £50,270 means 40% on the pounds above £50,270, not on your whole salary.
Scottish Income Tax Bands 2026/27
If your main home is in Scotland, you are a Scottish taxpayer. Your salary, pension and self-employed profits are taxed at Scottish rates. Savings and dividends still use UK rates. For 2026/27 the Scottish Government raised the basic and intermediate thresholds by 7.4% and froze the higher bands:
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Scotland vs the rest of the UK: tax on the same salary
| Salary | England, Wales, NI | Scotland | Difference |
|---|---|---|---|
| £25,000 | £2,486 | £2,446 | £40 less |
| £35,000 | £4,486 | £4,501 | £15 more |
| £45,000 | £6,486 | £6,882 | £396 more |
| £60,000 | £11,432 | £13,182 | £1,750 more |
| £75,000 | £17,432 | £19,482 | £2,050 more |
| £100,000 | £27,432 | £30,732 | £3,300 more |
| £150,000 | £53,703 | £59,634 | £5,931 more |
Income tax only, on employment or pension income. National Insurance is the same across the UK.
Scottish taxpayers earning up to about £33,500 pay slightly less than they would in England. Above that they pay more, and the gap grows quickly once the 42% band starts at £43,663.
How the Bands Work: Worked Example
Tom lives in Manchester and earns £60,000:
| Slice of income | Amount | Rate | Tax |
|---|---|---|---|
| Personal allowance | £12,570 | 0% | £0 |
| Basic-rate band | £37,700 | 20% | £7,540 |
| Higher-rate band (£60,000 − £50,270) | £9,730 | 40% | £3,892 |
| Total income tax | £60,000 | 19.1% | £11,432 |
Tom is a "40% taxpayer", but his overall rate is 19.1%. What 40% means is that each extra pound he earns is taxed at 40%. That is why a £1,000 pension contribution saves him £400 of income tax.
The Personal Allowance Taper and the 60% Band
Once your adjusted net income goes over £100,000, you lose £1 of personal allowance for every £2 above that. By £125,140 the allowance is gone. In this range each extra £1 is taxed at 40% and also removes 50p of allowance, which is then taxed at 40%. That gives an effective marginal rate of 60%, and 67.5% in Scotland.
| Income range | England, Wales, NI | Scotland |
|---|---|---|
| £12,571 – £50,270 | 20% | 19% – 42% |
| £50,271 – £100,000 | 40% | 42% / 45% |
| £100,001 – £125,140 | 60% | 67.5% |
| Over £125,140 | 45% | 48% |
Marginal income tax rates on employment income. Losing the allowance can also affect tax-free childcare, which stops at £100,000 of adjusted net income.
Example: Priya earns £110,000. Her personal allowance falls to £7,570 and she pays £33,432. If she sacrifices £10,000 of salary into her pension, her income drops to £100,000 and her tax to £27,432. That is £6,000 saved on a £10,000 contribution. In Scotland, the same move saves £6,750.
Tax Bands for Savings and Dividends (2026/27)
Savings interest and dividends are added on top of your other income, in that order. They use UK-wide rates, including for Scottish taxpayers. Each has its own tax-free allowance, but the allowance still uses up space in your bands.
| Band | Savings rate | Personal savings allowance | Dividend rate |
|---|---|---|---|
| Basic rate | 20% | £1,000 | 10.75% |
| Higher rate | 40% | £500 | 35.75% |
| Additional rate | 45% | £0 | 39.35% |
- Dividend allowance: the first £500 of dividends is tax-free. From 6 April 2026 the ordinary and upper dividend rates went up by 2 percentage points (from 8.75% and 33.75%).
- Starting rate for savings: up to £5,000 of interest is taxed at 0%. This band shrinks by £1 for every £1 of other taxable income above the personal allowance, so it disappears once other income reaches £17,570.
- From April 2027: savings rates rise to 22%, 42% and 47%. Tax on property income is also changing then. For 2026/27, savings are still taxed at 20%, 40% and 45%.
Example: Sam earns £45,000, gets £2,000 of interest and £3,000 of dividends. His salary tax is £6,486. After the £1,000 savings allowance, £1,000 of interest is taxed at 20%, which is £200. After the £500 dividend allowance, £2,500 of dividends is taxed at 10.75%, which is £268.75. His total is £6,954.75. If Tom (above, on £60,000) had the same interest and £4,000 of dividends, they would cost £600 and £1,251.25, because his allowance is only £500 and he pays the higher rates.
Frozen Thresholds Until 2031
The £12,570 personal allowance and the £50,270 higher-rate threshold have been the same since April 2021. At the November 2025 Budget, the Government extended the freeze to 5 April 2031. The National Insurance primary threshold and upper earnings limit are frozen at the same levels. As wages rise, more of your income moves into the higher bands. HMRC estimates the extension will bring 700,000 more people into income tax by 2030/31.
National Insurance is charged separately from income tax. For 2026/27 employees pay 8% on earnings between £12,570 and £50,270 and 2% above that. See our National Insurance guide.
Ways to Stay in a Lower Band
- Pension contributions reduce adjusted net income. They are the main way out of the 60% band and can bring back child benefit (the charge starts at £60,000).
- Gift Aid donations extend your basic-rate band by the grossed-up amount, and they also reduce adjusted net income.
- ISAs keep interest and dividends out of the bands altogether.
- Marriage allowance: a non-taxpayer can transfer £1,260 of allowance to a basic-rate spouse or civil partner. This saves up to £252.
- Salary sacrifice for pensions or cycle-to-work lowers both income tax and National Insurance.
Related Tools & Guides
Frequently Asked Questions
In England, Wales and Northern Ireland: 0% up to £12,570, 20% from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% above £125,140. In Scotland: 19% starter, 20% basic, 21% intermediate, 42% higher (from £43,663), 45% advanced (from £75,001) and 48% top (over £125,140).
£12,570, the same as every year since 2021/22. It is frozen until 5 April 2031. It falls by £1 for every £2 of adjusted net income over £100,000 and is zero from £125,140.
In England, Wales and Northern Ireland you pay 40% on income above £50,270, and only on the part above that. In Scotland the 42% higher rate starts at £43,663.
Because the personal allowance is withdrawn at £1 for every £2 of income over £100,000. Each extra £1 is taxed at 40% and also removes 50p of tax-free allowance, which is then taxed at 40%. Together that is 60%. Pension contributions or Gift Aid that bring your adjusted net income back to £100,000 avoid it.
In England, Wales and Northern Ireland, £7,486 for 2026/27: 20% on the £37,430 above the personal allowance. In Scotland it is £8,982 because part of the income falls in the 42% band. National Insurance is extra.
10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers. The first £500 of dividends is tax-free. The basic and higher rates went up by 2 percentage points from 6 April 2026.
Yes. The personal allowance (£12,570) and the basic rate limit (£37,700, so the higher rate starts at £50,270) are frozen until 5 April 2031. The Budget in November 2025 extended the freeze by three years.
Calculates 2026/27 income tax with the personal allowance and taper, UK or Scottish bands, the starting rate for savings, the personal savings allowance and the dividend allowance. It does not include National Insurance, student loans, the marriage allowance, Gift Aid or pension relief at source, the blind person's allowance or the high income child benefit charge. Check your figures with HMRC or a tax adviser.
- GOV.UK — Income Tax rates and Personal Allowances
- GOV.UK — Income Tax in Scotland
- Scottish Government — Scottish Income Tax rates and bands 2026 to 2027
- HMRC — Maintaining thresholds until 5 April 2031
- HMRC — Changes to tax rates for property, savings and dividend income
- HMRC — Rates and thresholds for employers 2026 to 2027