UK Income Tax Rates and Thresholds 2026/27

Every rate, band and allowance for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027.

Personal allowance

£12,570, unchanged since April 2022 and now frozen until 2030/31 after the Autumn Budget of November 2025 extended the freeze by three years. Above £100,000 of adjusted net income it is withdrawn at £1 for every £2, reaching zero at £125,140 — which creates the 60% effective rate in between.

Income tax — England, Wales and Northern Ireland

Three bands. Wales sets its rates equal to England's.
Band	Taxable income	Gross income	Rate
Basic rate	£0 to £37,700	£12,570 to £50,270	20%
Higher rate	£37,700 to £125,140	£50,270 to £137,710	40%
Additional rate	£125,140 and above	£137,710 and above	45%

The boundary people get wrong. The additional rate applies to taxable income above £125,140 — not above £112,570. The two are often confused because £125,140 less a full personal allowance is £112,570, but anyone reaching this band has already lost their allowance entirely. Using the wrong figure overstates the tax on a £150,000 salary by £628.5.

Income tax — Scotland

Six bands. The starter and basic limits rose 7.4%; higher, advanced and top were frozen.
Band	Taxable income	Gross income	Rate
Starter rate	£0 to £3,967	£12,570 to £16,537	19%
Scottish basic rate	£3,967 to £16,956	£16,537 to £29,526	20%
Intermediate rate	£16,956 to £31,092	£29,526 to £43,662	21%
Higher rate	£31,092 to £62,430	£43,662 to £75,000	42%
Advanced rate	£62,430 to £125,140	£75,000 to £137,710	45%
Top rate	£125,140 and above	£137,710 and above	48%

How Scotland compares with the rest of the UK

National Insurance

Class 1 — employees and employers
Employee rate, £12,570 to £50,270	8%
Employee rate above £50,270	2%
Employer rate above £5,000	15%
Employment Allowance	£10,500
Lower Earnings Limit	£6,708
Class 1A on benefits in kind	15%

Class 4 — the self-employed. Class 2 was abolished in April 2024.
£12,570 to £50,270	6%
Above £50,270	2%
Small profits threshold	£7,105
Voluntary Class 2 below that	£3.65 a week

Dividends — up 2 points this year

Increased from 6 April 2026. Dividend rates are not devolved.
Band	2025/26	2026/27
Ordinary	8.75%	10.75%
Upper	33.75%	35.75%
Additional	39.35%	39.35%
Allowance	£500	£500

Other key figures

Pension annual allowance	£60,000
Money purchase annual allowance	£10,000
Capital gains annual exempt amount	£3,000
Corporation tax, small profits	19%
Corporation tax, main rate	25%
VAT registration threshold	£90,000
Child Benefit, eldest child	£27.05 a week
High Income Child Benefit Charge starts	£60,000
Approved mileage, first 10,000 miles	55p
Statutory redundancy weekly cap	£751

Already announced for later years

April 2027: basic, higher and additional rates on savings income UK-wide, and on property income in England, Wales and Northern Ireland, rise 2 points to 22%, 42% and 47%. The cash ISA allowance falls to £12,000 for under-65s.
April 2029: National Insurance relief on salary-sacrificed pension contributions is capped at £2,000 a year. What that means.
To 2030/31: income tax and National Insurance thresholds stay frozen, so fiscal drag continues to pull more people into higher bands.

Every figure with its source · What changed and when

UK income tax rates and thresholds for 2026/27