What Are the Tax Brackets in the UK for 2026/27?

Last updated: 18 October 2026

Trying to work out your income tax for the current tax year? This guide sets out the UK tax brackets for 2026/27, which runs from 6 April 2026 to 5 April 2027, along with what income is taxed and what is tax-free.

UK tax rules can be complex, and getting them wrong can lead to penalties from HMRC. Below we list which earnings are taxable and which are not, then explain each tax bracket with examples.

The aim is to help you plan ahead and file your taxes on time. Let’s begin.

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Earnings Subject to Taxation

These are the main types of income that can be taxed:

1. Your salary or wages above the personal allowance.
2. Profits from self-employment, including services and goods sold through websites and apps.
3. Some state benefits, such as the State Pension and Carer’s Allowance.
4. Most government grants paid to businesses.
5. Pensions, including the State Pension and private or workplace pensions.
6. Rental income from property.
7. Taxable benefits from your job, such as a company car.
8. Income from a trust.
9. Savings interest above your personal savings allowance.
10. Dividends above your dividend allowance.

Earnings Not Subject to Taxation

You do not pay income tax on:

1. The first £1,000 of income from self-employment or casual work (your trading allowance).
2. The first £1,000 of property income (the property allowance).
3. Rent from a lodger in your own home of up to £7,500 a year under the Rent a Room scheme.
4. Interest and gains inside ISAs.
5. Dividends within your £500 dividend allowance.
6. Savings interest within your personal savings allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers).
7. Some state benefits, such as Child Benefit (unless the High Income Child Benefit Charge applies), Personal Independence Payment and Universal Credit.
8. Premium Bond prizes and National Lottery winnings.

What is a Personal Allowance?

The personal allowance is the amount of income you can receive each tax year without paying income tax. For 2026/27 it is £12,570, the same as every year since 2021/22.

Income tax only applies to income above your personal allowance, which then falls into the tax brackets below. Your allowance stays the same if you change jobs during the year, and it does not depend on your age.

It does depend on your income, though. If your income is over £100,000, your personal allowance falls by £1 for every £2 above that limit, so it disappears completely at £125,140. You may also get a higher allowance if you claim the marriage allowance or blind person’s allowance.

Tax Brackets in the UK for 2026/27:

Here are the income tax brackets for England, Wales and Northern Ireland for 2026/27. The rates apply to income above your personal allowance.

1. Basic Rate

The basic rate of 20% applies to income from £12,571 to £50,270. For example, if you earn £30,000, you pay 20% on the £17,430 above your personal allowance, which is £3,486 in income tax.

2. Higher Rate

The higher rate of 40% applies to income from £50,271 to £125,140. For example, on £60,000 you pay £7,540 at the basic rate and 40% on the £9,730 above £50,270 (£3,892), so £11,432 in total.

3. Additional Rate

The additional rate of 45% applies to income above £125,140. At this level you also have no personal allowance.

Scottish Tax Brackets 2026/27

If you live in Scotland, different brackets apply to your earnings and pension income (but not to savings or dividends). Above the £12,570 personal allowance, the rates are 19% starter, 20% basic, 21% intermediate, 42% higher (from £43,663), 45% advanced (from £75,001) and 48% top rate (above £125,140).

Is that All the Tax You have to Pay?

Unfortunately not. Depending on your circumstances, you may also need to pay other taxes, such as:

• National Insurance Contributions: 8% for employees on earnings between £12,570 and £50,270, and 6% Class 4 for the self-employed on the same band
• Value Added Tax (VAT)
• Council Tax
• Capital Gains Tax (CGT)
• Inheritance Tax (IHT)

Because the rules interact, it is worth getting advice from an experienced tax adviser to avoid overpaying or facing penalties from HMRC.

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A Quick Wrap-up

The UK tax brackets for 2026/27 are frozen at the same levels as recent years. With the standard personal allowance of £12,570:

The basic rate of 20% applies to income from £12,571 to £50,270, the higher rate of 40% from £50,271 to £125,140, and the additional rate of 45% above £125,140.

Other taxes may also apply, so professional tax advice can help you plan with confidence.