UK income tax bands explained: rates for 2026/27

Ta treść jest po angielsku.

Income tax is charged in bands, so each slice of your income is taxed at a different rate. Knowing where your income falls explains why a pay rise does not always mean a proportional rise in take-home pay. This guide sets out the income tax bands for the 2026/27 tax year (6 April 2026 to 5 April 2027), explains the personal allowance and how it reduces above £100,000, and works through examples. Figures checked against GOV.UK on 15 October 2026.

Autor: Valtrinity. Zaktualizowano: 18 października 2026.

The personal allowance

Everyone has a personal allowance, which is the amount of income that is not taxed. For 2026/27 it is £12,570. Income up to that figure carries no income tax, and only income above it is taxed. The personal allowance is set against your income first, so it is used before any band is applied.

The allowance is not always £12,570. It is reduced for people with income above £100,000, which is explained below.

• Personal allowance: £12,570 for 2026/27.
• Income up to the allowance carries no income tax.

The bands and rates

Income above the personal allowance is taxed in three bands. The basic rate of 20 per cent applies from £12,571 to £50,270. The higher rate of 40 per cent applies from £50,271 to £125,140. The additional rate of 45 per cent applies to income over £125,140.

A band applies only to the slice of income that falls within it, not to your whole income. Moving into the higher rate band therefore taxes only the income above £50,270, and the income below it is taxed as before.

These are the rates for the rest of the UK. Scotland sets its own income tax bands and rates, so check the Scottish rates if you live there.

• Personal allowance: £12,570, at 0%.
• Basic rate: 20%, from £12,571 to £50,270.
• Higher rate: 40%, from £50,271 to £125,140.
• Additional rate: 45%, over £125,140.

Worked example: a salary of £40,000

Take a salary of £40,000 with no other income. The first £12,570 is untaxed. The next £27,430 (from £12,571 to £40,000) falls in the basic rate band and is taxed at 20 per cent, which is £5,486. The total income tax is £5,486, and the rest of the salary is available after tax, subject to National Insurance and any other deductions.

The same logic works for any salary. Work out the amount above the personal allowance, then apply each band to the slice of income that falls within it.

• Personal allowance: first £12,570, untaxed.
• Basic rate: £27,430 at 20%, which is £5,486.

Why the allowance reduces above £100,000

The personal allowance is reduced by £1 for every £2 of income above £100,000. It falls to zero at £125,140. That means someone with income of £125,140 or more has no personal allowance at all. This reduction is the reason for a sharp jump in the effective rate between £100,000 and £125,140.

Worked example. Take income of £110,000. The allowance falls by half of the £10,000 above £100,000, which is £5,000, so the allowance is £7,570. Taxable income is £102,430. Tax is £7,540 on the first £37,700 at 20 per cent, plus £25,892 on the next £64,730 at 40 per cent. The total is £33,432.

At £100,000 the tax is £27,432. The extra £10,000 of income costs £6,000 in extra tax, which is an effective 60 per cent rate on that slice. This is a well-known effect of the taper, and it applies only to income tax, not National Insurance.

• Allowance falls £1 for every £2 above £100,000.
• Allowance reaches zero at £125,140.
• Effective rate on income between £100,000 and £125,140 is 60%.

Income tax is not the same as take-home pay

Income tax is one part of the deductions from pay. National Insurance, student loan repayments and pension contributions are separate, and each has its own rules. Using the bands alone will overstate what you keep if you have other deductions. The take-home pay calculator on Valtrinity brings these elements together.

• Income tax is one deduction among several.
• Use the take-home pay calculator for the full picture.

Sources

Figures for the 2026/27 tax year, checked against the GOV.UK page below on 15 October 2026.

• GOV.UK, Income Tax rates and Personal Allowances: https://www.gov.uk/income-tax-rates

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