PaychecklyUK Income Tax Rates & Brackets 2026/27
Everything you earn is taxed in slices, not all at one rate — which is why a pay rise never costs you your whole income. Here are the exact UK Income Tax bands for 2026/27, how they stack, and the Scottish system that works differently.
The 2026/27 rates (England, Wales & Northern Ireland)
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
These thresholds are frozen and unchanged from recent years — a freeze that quietly pulls more people into higher bands as wages rise (known as "fiscal drag").
How the slices actually work
This is the single most misunderstood part of UK tax. When you move into a higher band, only the income above that threshold is taxed at the higher rate — not your whole salary.
First £12,570 → taxed at 0% (£0)
Next £37,700 (£12,571–£50,270) → taxed at 20% (£7,540)
Final £9,730 (£50,271–£60,000) → taxed at 40% (£3,892)
Total Income Tax: £11,432 — an effective rate of 19%, even though you're a "40% taxpayer".
So earning £1 over £50,270 does not suddenly cost you more on your existing income — a common myth. Only that extra £1 is taxed at 40%.
The hidden 60% band
There's an effective rate the official table doesn't show. Between £100,000 and £125,140, your Personal Allowance is withdrawn by £1 for every £2 you earn — creating an effective 60% marginal rate on that slice. We cover how to handle it in the 60% Tax Trap guide.
Scotland is different
Scottish taxpayers (tax codes starting with S) pay Income Tax set by the Scottish Government, with six bands rather than three:
| Band | Rate |
|---|---|
| Starter rate | 19% |
| Basic rate | 20% |
| Intermediate rate | 21% |
| Higher rate | 42% |
| Advanced rate | 45% |
| Top rate | 48% |
The Personal Allowance (£12,570) is the same UK-wide, but Scottish higher earners generally pay more than their counterparts in the rest of the UK. The main calculator applies the correct Scottish bands automatically when you select Scotland.
What's NOT Income Tax
Two things often confused with Income Tax:
- National Insurance is separate — 8% then 2%, on different thresholds. See the National Insurance guide.
- Dividend and savings income have their own rates and allowances, taxed after your salary.
How to pay less Income Tax (legally)
- Pension contributions reduce taxable income at your marginal rate — see salary sacrifice.
- Marriage Allowance can shift £1,260 of allowance between spouses — see the Marriage Allowance guide.
- Gift Aid and charitable giving extend your basic-rate band.
General information for the 2026/27 tax year, not financial advice. Rates and thresholds are set by HM Treasury (and the Scottish Government for Scotland) and can change at a Budget. Always confirm current figures at gov.uk.