Income Tax Rates 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 subject to confirmation at the Scottish Budget (expected December 2025).
2026–27 at a glance
- ›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 (pending Scottish Budget confirmation)
- ›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
Income tax 2026-27 — what you need to know
No income tax changes are expected 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.
Personal allowance and taper
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. The allowance tapers for high earners: 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.
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.
Scottish income tax
Scotland has separate income tax rates and bands, set annually by the Scottish Parliament. Scottish taxpayers pay a 19% starter rate on income just above the personal allowance, rising through basic (20%), intermediate (21%), higher (42%), advanced (45%), and top (48%) rates. The personal allowance and taper rules are UK-wide and apply equally to Scottish taxpayers.
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 are set annually by the Scottish Parliament and subject to their Budget process.
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?
Scottish rates for 2026–27 are subject to confirmation at the Scottish Budget, typically held in December. Until confirmed, the rates shown for Scotland are based on 2025–26 rates. Check the Scottish Government website or use our calculator after the Scottish Budget for confirmed 2026–27 rates.
What is the effective marginal rate on income between £100,000 and £125,140 for 2026-27?
The effective marginal rate remains 60% on income between £100,000 and £125,140 in 2026–27. This arises because the personal allowance tapers at £1 per £2 above £100,000 — so each £2 of income above that level produces £2 of income tax at 40% on the extra income, plus £0.80 of income tax on the £1 of lost personal allowance (at 20%). Combined, this gives a 60% effective marginal rate on this income range.
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.