Income Tax rates and bands 2026/27

Reviewed by ClearPayslip editorial teamUpdated on 22 October 2026Methodology

Short answer

In 2026/27 the Personal Allowance is £12,570. In England, Wales and Northern Ireland the basic rate of 20% applies up to £50,270, the higher rate of 40% up to £125,140 and the additional rate of 45% above that. Scotland has six rates from 19% to 48%.

Key facts

Personal Allowance:£12,570 (tax code 1257L).
Basic rate band:£37,700 of taxable income.
Higher rate threshold:£50,270; additional rate from £125,140.
The Personal Allowance falls by £1 for every £2 of income over £100,000.

England, Wales and Northern Ireland

Band	Salary (with the full Personal Allowance)	Taxable income	Rate
Personal Allowance	£0 – £12,570	—	0%
Basic rate	£12,571 – £50,270	£1 – £37,700	20%
Higher rate	£50,271 – £125,140	£37,701 – £125,140	40%
Additional rate	over £125,140	over £125,140	45%

Wales has its own Welsh rates of Income Tax, but for 2026/27 they give the same 20%, 40% and 45% overall rates as England. Northern Ireland uses the UK rates.

Scotland

Band	Salary (with the full Personal Allowance)	Taxable income	Rate
Personal Allowance	£0 – £12,570	—	0%
Starter rate	£12,571 – £16,537	£1 – £3,967	19%
Basic rate	£16,538 – £29,526	£3,968 – £16,956	20%
Intermediate rate	£29,527 – £43,662	£16,957 – £31,092	21%
Higher rate	£43,663 – £75,000	£31,093 – £62,430	42%
Advanced rate	£75,001 – £125,140	£62,431 – £125,140	45%
Top rate	over £125,140	over £125,140	48%

Personal Allowance withdrawal

If your adjusted net income is over £100,000, your Personal Allowance goes down by £1 for every £2 above that limit, until it is zero at £125,140. For example, at £110,000 the allowance is £7,570.

Example: how the bands apply

On a £60,000 salary in England, the first £12,570 is tax-free, the next £37,700 is taxed at 20% (£7,540) and the remaining £9,730 at 40% (£3,892): £11,432 of Income Tax in total. Moving into a higher band only affects the part of your income inside it.

Frequently asked questions

What are the Income Tax bands for 2026/27?

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 England, Wales and Northern Ireland.

What are the Scottish tax bands for 2026/27?

On salary with the full Personal Allowance: 19% from £12,571 to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140 and 48% above.

Do I take home less if I move into a higher band?

No. Only the part of your income inside the higher band is taxed at the higher rate, so a pay rise always increases take-home pay, even in the £100,000–£125,140 range.