This page brings together every major UK tax threshold, rate and allowance for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. It is the single reference we use across UKCalc, reviewed against official HMRC and GOV.UK publications, so every figure here matches what our calculators apply. Each section links to the relevant calculator if you want to see what the numbers mean for your own pay, savings or estate.
Many of these thresholds are frozen rather than rising with inflation — a policy that quietly increases tax bills each year. If you want to understand why, our fiscal drag guide explains the mechanism in plain English.
Income tax is charged on earnings above the personal allowance. The allowance and both main thresholds are frozen at their 2021/22 levels.
| Band | Taxable income 2026/27 | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Personal allowance taper: once adjusted net income passes £100,000, the personal allowance is withdrawn at £1 for every £2 of extra income, reaching zero at £125,140. Within that range the effective marginal rate is around 60%.
Marriage Allowance: a partner earning below the personal allowance can transfer £1,260 of unused allowance to a basic-rate taxpayer spouse or civil partner, worth up to £252 a year.
Work out your own bill with the income tax calculator, or see the official bands at GOV.UK: Income Tax rates.
Scotland sets its own rates and bands on earned income — six bands rather than three. The £12,570 personal allowance and all National Insurance rules are the same as the rest of the UK.
| Band | Taxable income 2026/27 | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £14,921 | 19% |
| Basic rate | £14,922 – £26,270 | 20% |
| Intermediate rate | £26,271 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Because the 42% higher rate begins at £43,663 — well below the £50,270 threshold elsewhere — middle and higher earners in Scotland generally pay more income tax than their counterparts south of the border. Compare your position with the take-home pay calculator, and see GOV.UK: Scottish Income Tax for the official position.
Employees pay Class 1 NI through PAYE; the self-employed pay Class 4 on profits through Self Assessment. Class 2 NI (the old weekly flat rate) was effectively abolished from April 2024.
| National Insurance | Earnings / profits | Rate |
|---|---|---|
| Employee Class 1 — below Primary Threshold | Up to £12,570 | 0% |
| Employee Class 1 — main rate | £12,570 – £50,270 | 8% |
| Employee Class 1 — above Upper Earnings Limit | Over £50,270 | 2% |
| Self-employed Class 4 — main rate | £12,570 – £50,270 | 6% |
| Self-employed Class 4 — upper rate | Over £50,270 | 2% |
The NI thresholds are deliberately aligned with the income tax personal allowance and higher-rate threshold. Employees can check deductions with the take-home pay calculator; sole traders should use the self-employed tax calculator. Official detail: GOV.UK: National Insurance.
Dividends sit on top of your other income and use whichever band they fall into, but at lower rates than salary. The allowance was cut from £1,000 to £500 in April 2024 and remains at £500 for 2026/27.
| Dividend tax 2026/27 | Amount / band | Rate |
|---|---|---|
| Dividend Allowance | First £500 of dividends | 0% |
| Basic-rate band | Within £12,571 – £50,270 | 8.75% |
| Higher-rate band | Within £50,271 – £125,140 | 33.75% |
| Additional-rate band | Over £125,140 | 39.35% |
If your dividends exceed £500 you generally need to report them via Self Assessment. Model a salary-plus-dividends mix with the dividend tax calculator, and see GOV.UK: Tax on dividends.
The Personal Savings Allowance (PSA) lets most people earn some savings interest tax-free. It depends on your income tax band — and shrinks to nothing for additional-rate taxpayers.
| Taxpayer band | Tax-free savings interest 2026/27 |
|---|---|
| Basic rate (20%) | £1,000 |
| Higher rate (40%) | £500 |
| Additional rate (45%) | £0 |
Crossing £50,270 halves your PSA to £500 — with today's rates, interest on a relatively modest cash balance can breach it, which is one reason ISAs matter (see below). Compare accounts in our best savings accounts guide, and see GOV.UK: Tax-free interest on savings.
Enter your salary to see income tax, National Insurance, pension and student loan deductions — using every threshold on this page.
Use the Take-Home Pay Calculator →Capital gains tax (CGT) applies when you sell shares, funds, property that is not your main home, and other chargeable assets. Since October 2024 the same main rates apply to residential property and other assets.
| Capital gains tax 2026/27 | Detail | Rate / amount |
|---|---|---|
| Annual exempt amount | Per person, per tax year | £3,000 |
| Basic-rate taxpayers | Gains within the basic-rate band | 18% |
| Higher/additional-rate taxpayers | Gains above the basic-rate band | 24% |
| Business Asset Disposal Relief | Qualifying business disposals (from April 2026) | 18% |
Only the first £3,000 of net gains each year is exempt, so couples can double up by holding assets jointly. Sales of UK residential property with CGT due must be reported and paid within 60 days. Estimate your bill with the capital gains tax calculator, and see GOV.UK: Capital Gains Tax.
Inheritance tax (IHT) is charged at 40% on the part of an estate above the available tax-free thresholds. The nil-rate band has been frozen at £325,000 since 2009.
| Inheritance tax 2026/27 | Detail | Rate / amount |
|---|---|---|
| Nil-rate band (NRB) | Per person | £325,000 |
| Residence nil-rate band (RNRB) | Home left to direct descendants | £175,000 |
| Standard IHT rate | On the taxable estate | 40% |
| Reduced rate | If 10%+ of the estate goes to charity | 36% |
The NRB and RNRB can combine to £500,000 per person, and any unused allowance transfers to a surviving spouse or civil partner — potentially doubling the tax-free amount. Gifts made 3–7 years before death benefit from taper relief, which reduces the IHT rate on the gift below 40%. Model an estate with the inheritance tax calculator, and see GOV.UK: Inheritance Tax.
ISAs shelter savings interest, dividends and capital gains from tax entirely — nothing inside an ISA appears on a tax return.
| ISA 2026/27 | Annual allowance |
|---|---|
| Overall ISA allowance (adults) | £20,000 |
The £20,000 can be split across Cash, Stocks and Shares, Innovative Finance and Lifetime ISAs, but the combined total across all of them cannot exceed £20,000 in the tax year. Our Stocks and Shares ISA guide covers what you can hold and how the tax benefits work; the official rules are at GOV.UK: Individual Savings Accounts.
The annual allowance caps how much can go into your pensions with tax relief each year — counting your own contributions and your employer's together.
| Pension 2026/27 | Detail | Amount |
|---|---|---|
| Annual allowance | Your + employer contributions (or 100% of earnings if lower) | £60,000 |
| Tapered annual allowance | Applies above £260,000 adjusted income | Reduced |
Contributions above the allowance are taxed at your marginal rate, cancelling the relief. High earners with adjusted income above £260,000 face a tapered (reduced) allowance and should take advice. Project your pot with the pension calculator, and see GOV.UK: Tax on your private pension.
Student loan repayments only start once income crosses your plan's threshold, and are collected through PAYE or Self Assessment on the income above it.
| Plan | Threshold 2026/27 | Repayment rate |
|---|---|---|
| Plan 2 (England/Wales, Sep 2012 – Jul 2023 starters) | £29,385/year | 9% |
| Plan 5 (England, from Aug 2023 starters) | £25,000/year | 9% |
| Postgraduate Loan | £21,000/year | 6% |
The Plan 2 threshold of £29,385 (£2,448/month) is frozen at this level until the end of 2029/30. Plan 2 loans are written off after 30 years; Plan 5 loans run for 40 years, so newer graduates are likely to repay for longer. Plan 1 and Plan 4 thresholds are set separately — see the official tables. Our student loan repayment guide covers write-off dates and interest; official detail at GOV.UK: Repaying your student loan.
Child Benefit is paid weekly per child, but the High Income Child Benefit Charge (HICBC) claws it back once the highest earner in the household passes the income threshold.
| Child Benefit 2026/27 | Amount / threshold |
|---|---|
| Eldest or only child | £26.05/week |
| Each additional child | £17.25/week |
| HICBC starts | £60,000 adjusted net income |
| HICBC rate | 1% of the benefit per £200 over £60,000 |
| Benefit fully clawed back | £80,000 |
The charge is based on the higher earner's income, not the household total, and pension contributions that reduce adjusted net income below £60,000 can eliminate it entirely. Check your position with the child benefit calculator, and see GOV.UK: Child Benefit.
The National Living Wage (NLW) is the legal minimum hourly rate for workers aged 21 and over; younger workers and apprentices have lower National Minimum Wage rates.
| Rate | Who it covers | Hourly rate |
|---|---|---|
| National Living Wage | Workers aged 21 and over | £12.21 |
| National Minimum Wage (18–20) | Workers aged 18, 19 and 20 | £10.18 |
| National Minimum Wage (16–17) | Workers aged 16 and 17 | £7.55 |
| Apprentice rate | Apprentices under 19, or 19+ in first year | £7.55 |
Tips cannot be counted towards minimum wage pay — employers must pass them on in full on top of wages. Our National Living Wage guide shows annual salary equivalents and take-home pay at each rate; the official rates are at GOV.UK: National Minimum Wage rates.
Running a business as well? The VAT calculator handles adding and removing VAT at the current rates, and to see how your earnings compare nationally, try average UK salary by age.
The figures above apply from 6 April 2026 to 5 April 2027. Changes are normally announced at a Budget or Autumn Statement and take effect the following 6 April — but several key thresholds, including the £12,570 personal allowance and £50,270 higher-rate threshold, are frozen and currently legislated to stay put until April 2028.
Income tax on earnings is devolved to the Scottish Parliament, which sets its own six-band structure (19% to 48% in 2026/27). National Insurance, the personal allowance, and tax on savings, dividends and capital gains remain reserved to Westminster, so those apply identically UK-wide.
Fiscal drag is what happens when thresholds are frozen while wages rise with inflation: more of your income drifts into tax, and into higher bands, without any announced rate rise. Many of the thresholds on this page are frozen, which is why tax bills keep climbing. Our fiscal drag guide walks through worked examples.
In practice, yes. Wales has the power to vary income tax rates but currently mirrors the England and Northern Ireland bands, and Northern Ireland uses the same rates as England. Only Scotland runs a different income tax structure — everything else on this page (NI, dividends, savings, CGT, IHT, ISAs, pensions) is identical across the UK.
Please note: this page is general information, not personal tax or financial advice. Thresholds interact in ways that depend on your circumstances — if you are making significant decisions based on your tax position, speak to a qualified accountant or financial adviser.