For the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027, the personal allowance is £12,570, the basic rate of 20% applies up to £50,270, the higher rate of 40% up to £125,140 and the additional rate of 45% above that, in England, Wales and Northern Ireland. Employee National Insurance is 8% between £12,570 and £50,270 and 2% above. Scotland has six bands of its own. The tables below show what the bands mean in pounds at each salary and where the system bends.
The bands for England, Wales and Northern Ireland
| Band | Taxable income | Total income | Rate |
|---|---|---|---|
| Personal allowance | first £12,570 | up to £12,570 | 0% |
| Basic rate | next £37,700 | £12,571 to £50,270 | 20% |
| Higher rate | next £74,870 | £50,271 to £125,140 | 40% |
| Additional rate | above £112,570 | over £125,140 | 45% |
The thresholds have been frozen since April 2021, so each year’s pay rises pull more income into the higher bands, a process often called fiscal drag. The personal allowance is withdrawn at £1 for every £2 of income above £100,000, which is why it reaches zero at £125,140 and why the additional rate starts at that figure rather than a round number.
National Insurance alongside it
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year (£1,048 to £4,189 a month) and 2% above. Unlike income tax it is assessed on each pay period rather than on the year, and it stops at State Pension age. Employers pay a separate 15% above £5,000 a year, which never appears on the employee’s payslip as a deduction. The National Insurance calculator shows the employee figure for any salary and pay frequency.
What the bands mean at each salary
| Salary | Income tax | National Insurance | Take-home | Effective income tax rate |
|---|---|---|---|---|
| £15,000 | £486 | £194 | £14,320 | 3.2% |
| £20,000 | £1,486 | £594 | £17,920 | 7.4% |
| £30,000 | £3,486 | £1,394 | £25,120 | 11.6% |
| £40,000 | £5,486 | £2,194 | £32,320 | 13.7% |
| £50,000 | £7,486 | £2,994 | £39,520 | 15.0% |
| £60,000 | £11,432 | £3,211 | £45,357 | 19.1% |
| £80,000 | £19,432 | £3,611 | £56,957 | 24.3% |
| £100,000 | £27,432 | £4,011 | £68,557 | 27.4% |
| £125,140 | £42,516 | £4,513 | £78,111 | 34.0% |
| £150,000 | £53,703 | £5,011 | £91,286 | 35.8% |
The effective rate is far below the headline rate at every salary because the allowance and the lower bands apply to slices of income. A higher rate taxpayer on £60,000 pays 40% only on the £9,730 above £50,270; the average across the whole salary is 19.1%. The salary after tax pages carry the full working for every common salary, and the income tax calculator gives the band-by-band figure for any amount.
Where the marginal rate jumps
The rate on the next pound earned, the marginal rate, moves in steps that the bands alone do not show.
- Up to £12,570: nothing.
- £12,570 to £50,270: 28%, from 20% income tax and 8% National Insurance.
- £50,270 to £60,000: 42%, as income tax rises to 40% and National Insurance falls to 2%.
- £60,000 to £80,000, with children: 42% plus the High Income Child Benefit Charge, about 54% for a family with two children.
- £100,000 to £125,140: 62%, because the personal allowance is withdrawn at the same time as 40% tax applies.
- Above £125,140: 47%.
The 62% band is the most heavily taxed in the system, and it is where pension contributions are worth most: a pound paid in costs 38p of take-home. The marginal tax rate calculator shows the figure for any salary, including the Child Benefit charge and student loan repayments, which add a further 9%.
Scotland’s six bands
Scottish income tax applies to the earned income of Scottish residents, identified by an S at the start of the tax code, while National Insurance is the same across the UK.
| Band | Total income | Rate |
|---|---|---|
| Personal allowance | up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | over £125,140 | 48% |
Below about £32,000 a Scottish taxpayer pays slightly less than in England, because of the 19% starter rate: £35 less on £30,000. Above that the 21% and 42% bands take more: £1,496 more on £50,000, £3,300 more on £100,000 and £6,308 more on £150,000. The Scottish income tax calculator shows the band-by-band comparison. Wales has the power to vary its rates but has kept them equal to England’s for 2026/27.
Other rates that sit alongside
Dividends are taxed after a £500 allowance at 10.75% in the basic rate band, 35.75% in the higher band and 39.35% in the additional band, with the dividend tax calculator covering the interaction with salary. Savings interest is covered by a Personal Savings Allowance of £1,000 for basic rate taxpayers, £500 for higher rate and nil for additional rate. The Marriage Allowance lets a non-taxpayer transfer £1,260 of allowance to a basic rate partner, worth £252 a year, and the Blind Person’s Allowance adds £3,250 to the personal allowance.
Common questions
What is the personal allowance for 2026/27? £12,570. It is reduced by £1 for every £2 of income above £100,000 and disappears at £125,140.
When do you start paying 40% tax? On income above £50,270 in England, Wales and Northern Ireland. In Scotland the 42% higher rate starts at £43,662.
Have the tax bands changed for 2026/27? The allowance and the thresholds are unchanged from 2025/26, continuing the freeze in place since April 2021. National Insurance rates and thresholds are also unchanged.
How much tax do I pay on £50,000? £7,486 of income tax and £2,994 of National Insurance, leaving £39,520, on the standard tax code with no pension or student loan.
Is National Insurance the same in Scotland? Yes. National Insurance is set for the whole UK; only income tax on earnings is devolved to Scotland.
Why is my tax code 1257L? Because £12,570 divided by ten is 1257, and L means the standard personal allowance applies. Our guide on checking your tax code explains other codes.
Information, not financial advice. Rates and thresholds are the published 2026/27 figures on gov.uk and the Scottish Government’s rates for Scottish taxpayers; salary figures are estimates from the site’s calculators on the standard tax code. Check your own circumstances before acting on them.