Income Tax Calculator UK 2026–27
Enter your annual income to calculate exactly how much UK income tax you owe for 2026–27. See your tax broken down by band, your personal allowance, effective rate, and marginal rate — for both England/Wales/Northern Ireland and Scotland.
2026–27 at a glance — from 6 April 2026
- ›Personal allowance: £12,570 (frozen through 2028)
- ›Basic rate: 20% on income £12,571–£50,270
- ›Higher rate: 40% on income £50,271–£125,140
- ›Additional rate: 45% on income above £125,140
- ›PA taper: reduces £1 per £2 of income above £100,000, reaching zero at £125,140
- ›Scottish rates: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%
Your income tax breakdown will appear here
How income tax is calculated
UK income tax is charged on taxable income — the amount remaining after deducting your personal allowance from your gross annual income. The tax is then applied in bands at progressively higher rates. National Insurance is a separate deduction from income tax and is not included in these calculations.
Personal allowance and taper
For 2026–27, the standard personal allowance is £12,570. You pay no income tax on the first £12,570 of income. If your income exceeds £100,000, the personal allowance tapers at £1 for every £2 earned above that level, reaching zero at £125,140. This creates an effective 60% marginal rate on income in the £100,000–£125,140 range.
Threshold freeze and fiscal drag
For taxpayers in England, Wales, and Northern Ireland, income above the personal allowance is taxed as follows: the basic rate of 20% applies up to £50,270; the higher rate of 40% applies between £50,271 and £125,140; the additional rate of 45% applies above £125,140. These thresholds have been frozen since 2021 and are scheduled to remain frozen until at least 2028, meaning fiscal drag pulls more taxpayers into higher bands as wages rise.
For example, a worker earning £35,000 in 2021–22 paid £4,486 in income tax. The same salary in 2026–27 still pays £4,486 — but if their wages rose with inflation to around £41,000 over that period, they now pay £5,686, an increase of £1,200 with no change in the headline rate. That is fiscal drag in action. A bonus is also taxed at the marginal rate — if it pushes your total income across a band threshold, a portion is taxed at 40% rather than 20%. If you are self-employed, you'll pay tax via Self Assessment using these same rates and bands rather than having tax deducted through PAYE. Student loan repayments are also deducted via PAYE or Self Assessment on top of income tax.
Scottish income tax
Scotland has devolved income tax powers and sets its own rates and bands. For 2026–27, Scottish taxpayers pay: 19% starter rate (£12,571–£14,876); 20% basic rate (£14,877–£26,561); 21% intermediate rate (£26,562–£43,662); 42% higher rate (£43,663–£75,000); 45% advanced rate (£75,001–£125,140); 48% top rate above £125,140. The personal allowance and taper rules are the same as for the rest of the UK. Rates confirmed at the Scottish Budget, December 2025. Source: Scottish Government.
Effective vs marginal rate
The marginal rate is the rate applied to your last pound of income. The effective rate is your total income tax as a percentage of gross income. Because the personal allowance is untaxed and lower bands are taxed at lower rates, the effective rate is always lower than the marginal rate. To calculate your exact take-home pay after all deductions — including NI, student loans, and pension — use the take-home pay calculator. Note that capital gains are taxed separately from income, using different rates and an annual exempt amount. Contractors should also check their IR35 status, which determines whether contract income is taxed as employment income or via a more tax-efficient limited company structure.
Worked example: £55,000 salary in England, 2026–27
Gross income: £55,000. Personal allowance: £12,570. Taxable income: £42,430.
Basic rate (20%) on £12,571–£50,270 = £37,700 × 20% = £7,540.
Higher rate (40%) on £50,271–£55,000 = £4,730 × 40% = £1,892.
Total income tax: £7,540 + £1,892 = £9,432. Effective rate: 17.1%. Marginal rate: 40%.
For comparison, the same salary in Scotland: taxable income splits across 19% starter, 20% basic, and 21% intermediate bands before reaching the 42% higher rate at £43,663 — total Scottish income tax approximately £10,102, or £670 more than in England.
Source: HMRC — Income Tax rates and Personal Allowance, GOV.UK (gov.uk/income-tax-rates). Scottish Government — Income Tax rates and bands (gov.scot/income-tax). HMRC — Check your Income Tax (gov.uk/check-income-tax).
Further reading
Executors handling an estate must also settle any outstanding income tax for the deceased's final year. Our guide explains exactly how inheritance tax is calculated alongside those obligations.
How to calculate inheritance tax: nil-rate band, taper relief, and spousal transfers →Frequently asked questions
What is the personal allowance for 2026–27?
The personal allowance for 2026–27 is £12,570. This is the amount of income you can earn each year without paying income tax. It applies to most UK taxpayers in England, Wales, Northern Ireland, and Scotland, though it tapers for those earning above £100,000. The allowance has been frozen at this level since 2021–22 and remains frozen through at least April 2028.
What are the income tax rates for 2026–27?
For England, Wales, and Northern Ireland: 20% basic rate on income from £12,571 to £50,270; 40% higher rate on income from £50,271 to £125,140; 45% additional rate on income above £125,140. Scotland has separate rates set by the Scottish Parliament, including a 19% starter rate, rising through basic (20%), intermediate (21%), higher (42%), advanced (45%), and top (48%) rates.
Why does my effective tax rate differ from the headline rate?
Your effective tax rate is your total income tax divided by your gross income. It differs from the headline (marginal) rate because only income above your personal allowance is taxed, and different portions are taxed at different rates. For example, a £50,000 earner pays 20% on most of their taxable income, giving an effective rate well below 20% of gross income.
How does the personal allowance taper work?
If your income exceeds £100,000, your personal allowance reduces by £1 for every £2 of income above that threshold. The allowance reaches zero at £125,140, meaning all income above that amount is taxable. This creates an effective 60% marginal rate on income between £100,000 and £125,140.
Do Scottish taxpayers pay more income tax?
It depends on the level of income. Scottish taxpayers benefit from a lower starter rate of 19%, but the higher rate threshold is lower than in the rest of the UK. For incomes above roughly £28,000 to £43,000 (depending on the specific amount), Scottish taxpayers typically pay slightly more income tax than their counterparts in England, Wales, and Northern Ireland.
What is fiscal drag and how does it affect me?
Fiscal drag occurs when income tax thresholds are frozen while wages rise with inflation. As earnings increase, more income falls into higher tax bands — even though the rates themselves have not changed. The UK personal allowance and higher rate threshold have been frozen since 2021 and are scheduled to remain frozen until at least 2028. A worker whose salary has risen from £35,000 to £45,000 over this period now pays around £2,000 more in income tax per year without any rate increase.
Can I reduce my income tax by making pension contributions?
Yes. Pension contributions reduce your taxable income. Under salary sacrifice, your employer reduces your gross pay before calculating tax and NI — this is the most efficient method. Under relief at source, you contribute from net pay and the pension scheme claims 20% tax relief from HMRC. For higher-rate taxpayers, an additional 20% relief is available via Self Assessment. For earners between £100,000 and £125,140, pension contributions that reduce adjusted net income below £100,000 recover the full personal allowance, saving 60p in tax per £1 contributed.
What is the 60% tax trap and who does it affect?
The 60% tax trap affects earners between £100,000 and £125,140. In this range the personal allowance tapers by £1 for every £2 of income above £100,000. On each additional £2 earned: you pay 40% income tax (80p after tax), then lose £1 of personal allowance which is taxed at 40% (an extra 40p). Total tax on £2: 80p + 40p = £1.20, giving a 60% effective marginal rate. Pension contributions or Gift Aid donations that bring adjusted income below £100,000 are the main escape route.
How is income tax different from National Insurance?
Income tax and National Insurance are two separate deductions from your pay, calculated independently. Income tax is calculated on your total annual income using the progressive band system. National Insurance is calculated on your weekly or monthly earnings above the primary threshold (£12,570/year) at 8% up to £50,270 and 2% above. National Insurance has a separate upper earnings limit, does not apply to pension income or savings interest, and does not vary between England and Scotland — unlike income tax.
Do I need to complete a Self Assessment tax return?
You normally pay income tax through PAYE if you are employed. A Self Assessment return is required if you are self-employed, a company director, your income exceeds £100,000, you have untaxed income over £2,500 (such as rental income or savings interest), or you claim Child Benefit and either partner earns over £60,000. HMRC will contact you if they believe you need to file — but the responsibility is yours. Late filing attracts an automatic £100 penalty even if no tax is owed.
Related calculators
This calculator provides estimates only. Results are based on the 2026–27 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.