UK Income Tax Bands Explained
Understand UK income tax rates, personal allowances, tax bands and the differences between Scotland and the rest of the UK.
UK Income Tax is charged at different rates depending on how much taxable income you receive and where in the UK you live. Most people receive a Personal Allowance, which is the amount of income they can earn before paying Income Tax.
This guide explains the main income tax bands for the 2026/27 tax year, how the Personal Allowance works, and why Scotland has a different system for most earned income.
What Is the UK Personal Allowance?
The standard Personal Allowance for 2026/27 is £12,570. For someone eligible for the full allowance, this is the amount of income that is generally free from Income Tax.
| Allowance | 2026/27 amount |
|---|---|
| Standard Personal Allowance | £12,570 |
| Income level where taper starts | £100,000 |
| Income level where allowance reaches zero | £125,140 |
Your actual allowance can differ if your income is high or you qualify for certain additional allowances or reliefs. The Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000.
Income Tax Bands: England, Wales and Northern Ireland
For most non-savings, non-dividend income, these are the main income tax rates and thresholds for 2026/27, assuming you receive the full standard Personal Allowance.
| Band | Annual 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% |
The income thresholds above are presented as gross income for a person with the full Personal Allowance. Taxable-income bands after deducting the allowance are different: the basic-rate band covers the next £37,700 of taxable income.
Scottish Income Tax Bands
Scottish rates apply to Scottish taxpayers on most non-savings, non-dividend income, such as employment earnings and pension income. The Personal Allowance is generally the same, but the tax bands and rates differ.
| Band | Taxable income after allowance | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 of total income | 0% |
| Starter rate | £1–£3,967 | 19% |
| Basic rate | £3,968–£16,956 | 20% |
| Intermediate rate | £16,957–£31,092 | 21% |
| Higher rate | £31,093–£62,430 | 42% |
| Advanced rate | £62,431–£125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Scottish bands above are taxable-income bands after the Personal Allowance. Scotland has separate rules for some types of income, including savings and dividends. Check the official guidance for your circumstances.
Example: Calculating Income Tax
Imagine an employee in England earns £40,000 in 2026/27, has the full £12,570 Personal Allowance, and has no other taxable income or adjustments.
| Calculation | Amount |
|---|---|
| Annual salary | £40,000 |
| Personal Allowance | £12,570 |
| Taxable income | £27,430 |
| Tax at 20% on taxable income | £5,486 |
| Estimated annual Income Tax | £5,486 |
This simplified example excludes National Insurance, pension contributions, student loan repayments, benefits, tax reliefs and other adjustments. Your payslip and final tax position may differ.
What Happens If You Earn Over £100,000?
When adjusted net income exceeds £100,000, the standard Personal Allowance is reduced by £1 for every £2 of income above that threshold.
For example, at adjusted net income of £110,000, the allowance is reduced by £5,000, leaving a Personal Allowance of £7,570. At £125,140, the standard allowance has been reduced to zero.
This taper can increase the effective marginal tax rate over part of this income range. Pension contributions and eligible Gift Aid donations may affect adjusted net income, depending on the circumstances.
Income Tax vs National Insurance
Income Tax and National Insurance are different deductions. Income Tax depends on taxable income, allowances and the applicable tax bands. National Insurance contributions use their own thresholds and rates, which can depend on whether you are employed or self-employed.
Your take-home pay may also be affected by workplace pension contributions, student loan repayments and other deductions. A simple Income Tax calculation will not necessarily show your complete net salary.
Calculate Your UK Income Tax
Estimate your tax and explore your potential take-home income using our UK calculator.
Use UK Income Tax Calculator →Frequently Asked Questions
What is the tax-free allowance in the UK for 2026/27?
The standard Personal Allowance is £12,570. It may be reduced for people whose adjusted net income exceeds £100,000 or differ in other circumstances.
What is the basic rate of UK Income Tax?
The main basic rate is 20% for most non-savings, non-dividend income in England, Wales and Northern Ireland. Scotland has a 20% basic rate as well as other bands and rates.
Do Scotland and England have the same income tax bands?
No. Scotland has different rates and bands for most non-savings, non-dividend income. The rules for savings and dividends differ.
Is National Insurance included in Income Tax bands?
No. National Insurance is separate from Income Tax and is calculated under its own rules.
When does the UK tax year run?
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027.
Is this calculator estimate an official tax calculation?
No. It is an educational estimate and may not include every allowance, relief, special tax rule or personal circumstance.
Official HMRC Resources
For authoritative rates and allowances, read the GOV.UK Income Tax rates and Personal Allowances guide and the official Income Tax rates and allowances tables.
Disclaimer: This article is for general educational purposes only and is not tax, legal or financial advice. Tax rules can change. Confirm current HMRC guidance or consult a qualified tax adviser for your situation.