UK Income Tax Calculator 2026-27
The 2026–27 tax year runs from 6 April 2026 to 5 April 2027. Income tax rates and thresholds for England, Wales, and Northern Ireland are unchanged from 2025–26 — the threshold freeze continues through to at least April 2028. Scottish rates for 2026–27 are unchanged from 2025–26, confirmed at the Scottish Budget in December 2025.
Rates correct for 2026–27 · Reviewed by the Richard Ross · Last updated April 2026
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 (confirmed)
- ›Higher rate: 40% on income £50,271–£125,140 (confirmed)
- ›Additional rate: 45% on income above £125,140 (confirmed)
- ›Scottish rates: unchanged from 2025–26 (confirmed at Scottish Budget, December 2025)
- ›NI thresholds: frozen through 2028
England / Wales / Northern Ireland
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Scotland
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Starter Rate | £12,571 – £14,876 | 19% |
| Basic Rate | £14,877 – £26,561 | 20% |
| Intermediate Rate | £26,562 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Calculate your income tax for 2026–27
Your income tax breakdown will appear here
How UK income tax is calculated in 2026–27
No income tax changes for 2026–27. The threshold freeze was confirmed through to April 2028 at the Autumn Budget 2024. As a result, the 2026–27 income tax rates and bands shown here match 2025–26 exactly for England, Wales, and Northern Ireland.
UK income tax is calculated by deducting the personal allowance from your gross annual income to arrive at your taxable income, then applying progressively higher rates to each band. The tax is the same whether you earn from employment, self-employment, pensions, or rental income — though the collection mechanism differs (PAYE for employees, Self Assessment for the self-employed). National Insurance is a separate deduction and is not included in the income tax figures below.
The rates and bands
For 2026–27, England, Wales, and Northern Ireland taxpayers pay: 0% on the first £12,570 (personal allowance); 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. These thresholds have been frozen since 2021 and are confirmed frozen through April 2028.
Worked example: £35,000 salary
Income tax on a £35,000 salary in 2026–27:
- Personal allowance: first £12,570 at 0% = £0
- Basic rate: £12,571 to £35,000 (£22,430) at 20% = £4,486
- Total income tax: £4,486
- Effective tax rate: 12.8%
This does not include NI (approximately £1,394 at 8% on the same salary) or any student loan repayments. Use our take-home pay calculator for the full picture.
Personal allowance and the 60% tax trap
The personal allowance of £12,570 is the amount of income you receive free of income tax. It applies to most taxpayers in England, Wales, Northern Ireland, and Scotland. For high earners, the allowance tapers: above £100,000 it reduces by £1 for every £2 of income, reaching zero at £125,140. This creates an effective 60% marginal rate on income in the £100,000–£125,140 range — sometimes called the “60% tax trap”.
For example, a person earning £110,000 has lost £5,000 of personal allowance (half of the £10,000 excess above £100,000). Their personal allowance is £7,570 instead of £12,570, meaning an extra £5,000 of income is taxed at 40% — costing £2,000 in addition to the 40% tax on the original £10,000. The most common strategy to avoid this trap is making pension contributions that bring adjusted net income back below £100,000.
Threshold freeze and fiscal drag
The decision to freeze income tax thresholds through to April 2028 means that as wages rise with inflation, a growing share of income is subject to tax. Each year, some taxpayers cross the basic rate threshold for the first time, and some higher-rate taxpayers see more of their income taxed at 40%. This “fiscal drag” generates additional tax revenue without any formal change to rates. A bonus that pushes income above the higher rate threshold is taxed at 40% on the excess.
Scottish income tax
Scotland has separate income tax rates and bands, set annually by the Scottish Parliament. 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 (£12,570) and taper rules are UK-wide. Rates confirmed at the Scottish Budget, December 2025. Source: Scottish Government.
A Scottish taxpayer earning £50,000 pays approximately £700 more income tax than an equivalent English taxpayer on the same salary, primarily because the intermediate rate of 21% and higher rate of 42% apply at lower income levels.
What this calculator does not cover
This calculator covers income tax only — it does not include National Insurance, student loan repayments, pension deductions, or dividend tax. Capital gains are taxed separately at different rates. Contractors should check their IR35 status to understand how their contract income is taxed. For a complete after-tax figure, use the take-home pay calculator.
Sources: HMRC — Income Tax rates and allowances (gov.uk), Scottish Government — Scottish Income Tax 2026-27
Frequently asked questions
What are the income tax rates for 2026–27?
For England, Wales, and Northern Ireland: 0% personal allowance up to £12,570; 20% basic rate £12,571–£50,270; 40% higher rate £50,271–£125,140; 45% additional rate above £125,140. These are unchanged from 2025–26. Scottish rates were confirmed at the Scottish Budget in December 2025 and are also unchanged from the previous year.
Have income tax thresholds changed from 2025–26 to 2026–27?
No changes for England, Wales, and Northern Ireland. All income tax thresholds remain frozen through to at least April 2028, as confirmed at the Autumn Budget 2024. The personal allowance stays at £12,570, the basic rate threshold at £50,270, and the additional rate threshold at £125,140.
Why are 2026–27 thresholds the same as 2025–26?
The government announced at the 2024 Autumn Budget that income tax thresholds would remain frozen through to April 2028. This extends a policy in place since 2021. The freeze means fiscal drag — as wages rise with inflation, more income is pulled into higher tax bands without any formal rate increase.
Are Scottish income tax rates confirmed for 2026–27?
Yes. Scottish rates for 2026–27 were confirmed at the Scottish Budget in December 2025. The rates are unchanged from 2025–26: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, and top 48%. The personal allowance (£12,570) and taper rules remain UK-wide. Source: Scottish Government.
What is the 60% tax trap between £100,000 and £125,140?
The effective marginal rate on income between £100,000 and £125,140 is 60% in 2026–27. This arises because the personal allowance tapers by £1 for every £2 of income above £100,000, while the 40% higher rate also applies. The result is that you pay 40% tax on the extra income plus lose tax-free allowance — an effective 60% marginal rate. Pension contributions can reduce adjusted net income below £100,000 and recover the full allowance.
How much income tax do I pay on a £35,000 salary in 2026–27?
On a £35,000 salary: the personal allowance covers the first £12,570 (0% tax). The remaining £22,430 is taxed at the basic rate of 20%, giving £4,486 in income tax. Your effective tax rate is 12.8%. National Insurance is separate — use our NI calculator to see the additional deduction.
How much income tax do I pay on £50,000 in 2026–27?
On £50,000: the first £12,570 is tax-free under the personal allowance. The remaining £37,430 is taxed at 20% basic rate, giving £7,486. Your effective tax rate is 15.0%. As £50,000 is below the higher rate threshold (£50,270), all taxable income falls in the basic rate band.
How much income tax do I pay on £80,000 in 2026–27?
On £80,000: personal allowance covers £12,570 (0%). The next £37,700 (to £50,270) is taxed at 20% = £7,540. The remaining £29,730 (from £50,271 to £80,000) is taxed at 40% = £11,892. Total income tax: £19,432. Effective rate: 24.3%.
Does marriage allowance reduce my income tax in 2026–27?
If your spouse or civil partner earns less than £12,570 and you are a basic rate taxpayer, they can transfer £1,260 of their personal allowance to you. This reduces your income tax by up to £252 per year (£1,260 at 20%). You cannot claim if either partner pays tax at the higher or additional rate.
How is income tax different in Scotland for 2026–27?
Scotland sets its own income tax rates. For 2026–27: starter 19% (£12,571–£14,876), basic 20%, intermediate 21%, higher 42% (from £43,663), advanced 45% (from £75,001), top 48% (above £125,140). A Scottish taxpayer earning £50,000 pays approximately £700 more income tax than an English taxpayer on the same salary due to the higher intermediate and higher rates.
Do pension contributions reduce my 2026–27 income tax bill?
Yes. Pension contributions reduce your adjusted net income — the figure HMRC uses to assess your income tax liability. Salary sacrifice reduces gross pay before tax and NI are calculated. Relief-at-source contributions are made from net pay with the pension provider claiming 20% basic rate relief; higher and additional rate taxpayers reclaim the extra relief via Self Assessment. The annual allowance for 2026–27 is £60,000 (tapered to £10,000 for high earners above £260,000 adjusted income). For those in the £100,000–£125,140 taper zone, pension contributions that reduce adjusted income below £100,000 recover the full personal allowance and reduce the effective marginal rate from 60% to 40%.
Related calculators
This calculator provides estimates only. Rates are based on published HMRC figures for 2026–27. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.