Last updated: 18 October 2026
Looking for the UK tax rates for 2026/27? Tax rules change often, and staying on top of them helps you plan, avoid penalties and keep more of what you earn. This guide brings together the main 2026/27 rates for income tax, National Insurance, dividends, capital gains tax, Corporation Tax, VAT and stamp duty land tax, all checked against GOV.UK. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027.
Understanding Tax Rates for 2026/27
Here is a summary of the main UK tax rates and allowances for the year.
1- Rates of Income Tax 2026/27
The personal allowance is £12,570, and it is reduced by £1 for every £2 of income over £100,000. Income tax bands in England, Wales and Northern Ireland are frozen at the same levels as last year:
- Basic Rate (20%): £12,571 to £50,270. For example, on taxable pay of £30,000 you pay 20% on the £17,430 above your personal allowance, which is £3,486.
- Higher Rate (40%): £50,271 to £125,140. On income of £70,000, you pay 20% on £37,700 (£7,540) and 40% on the £19,730 above £50,270 (£7,892).
- Additional Rate (45%): over £125,140. This applies to the highest earners, who also have no personal allowance.
Scotland sets its own bands for earned income: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top rate.
National Insurance 2026/27
- Employees pay 8% on earnings between £12,570 and £50,270, and 2% above that.
- Employers pay 15% on earnings above £5,000 a year. The Employment Allowance is £10,500.
- Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270, and 2% above that. Voluntary Class 2 is £3.65 a week.
Dividends and Savings 2026/27
- Dividend allowance: £500. Dividend tax rates: 10.75% (basic), 35.75% (higher) and 39.35% (additional). The basic and higher rates each rose by 2 percentage points from 6 April 2026.
- Personal savings allowance: £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. The starting rate for savings covers up to £5,000 of interest for people with low other income.
- ISA allowance: £20,000.
Capital Gains Tax and Corporation Tax 2026/27
- Capital gains tax annual exempt amount: £3,000. Rates: 18% for gains within the basic rate band and 24% above it. Business asset disposal relief: 18% from 6 April 2026.
- Corporation Tax: 19% on profits up to £50,000, 25% on profits over £250,000, with marginal relief in between.
2- Rates of Value Added Tax 2026/27
VAT is charged on most goods and services sold by VAT-registered businesses. You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period.
Zero Rate: 0%
Applies to, for example:
- Most food (but not catering, hot takeaway food or alcohol)
- Children’s clothing and shoes
- Books, newspapers and magazines
- Prescription medicines dispensed by a pharmacist
- Women’s sanitary products
Standard Rate: 20%
This applies to most goods and services, including:
- Most consumer goods
- Restaurant meals and hotel stays
- Most business-to-business services
Reduced Rate: 5%
Applies to, for example:
- Children’s car seats
- Domestic fuel and power
- Mobility aids for older people
Some supplies, such as most financial services, insurance and education, are exempt from VAT altogether.
3- Rates of Stamp Duty Land Tax 2026/27
Stamp Duty Land Tax (SDLT) is paid when you buy property or land in England or Northern Ireland. Scotland and Wales have their own property taxes.
SDLT Rates for Non-Residential Properties
- Zero Rate: 0% (up to £150,000)
- 2% Rate: £150,001 to £250,000
- 5% Rate: above £250,000
SDLT Rates for Residential Properties
- Zero Rate: 0% (up to £125,000)
- 2% Rate: £125,001 to £250,000
- 5% Rate: £250,001 to £925,000
- 10% Rate: £925,001 to £1.5 million
- 12% Rate: above £1.5 million
First-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. Buyers of additional residential properties pay a 5% surcharge on top of the standard rates, and non-UK residents pay a further 2%.
The Bottom Line
Most income tax and National Insurance thresholds are frozen for 2026/27, but dividend tax has gone up, and higher savings and property income tax rates are due from April 2027. Knowing the current rates helps you plan your pay, your investments and your business decisions, and avoid penalties. If you would like help applying these rates to your own situation, our accountants can help.
Disclaimer: All the information in this article on tax rates for 2026/27, including text and graphics, is general in nature and does not replace professional advice.
