Guide · Tax year 2026/27
UK tax bands 2026/27, explained in plain English
The UK tax year runs from 6 April 2026 to 5 April 2027. The headline numbers are frozen again — the Personal Allowance and the main thresholds haven't moved since 2021, which is why pay rises keep quietly pushing people into higher bands (a effect called fiscal drag). Here is every band that decides your payslip.
Income tax — England, Wales & Northern Ireland
Tax is charged in slices. You never pay a higher rate on money below the threshold.
| Band | Slice of income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The £100,000 catch: earn over £100,000 and your Personal Allowance shrinks by £1 for every £2 above it, vanishing at £125,140. That creates an effective tax rate of about 62% in that window — we explain the trap and the fix here.
Income tax — Scotland
Scotland sets its own bands, with six rates. Lower earners pay a little less than the rest of the UK; from roughly £29,500 upwards, a little more.
| Band | Slice of income | Rate |
|---|---|---|
| Starter | £12,571 – £16,537 | 19% |
| Basic | £16,538 – £29,526 | 20% |
| Intermediate | £29,527 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Over £125,140 | 48% |
On a £45,000 salary that's £6,878.27 of income tax in Scotland versus £6,484.20 in the rest of the UK — a £394 difference (tax follows HMRC's PAYE tables, as in HMRC's estimator). Whether you pay Scottish tax depends on where you live, not where you work.
National Insurance (employees)
Same everywhere in the UK. You pay 8% on earnings between £12,570 and £50,270 a year, and 2% on everything above that. Nothing below £12,570. Your employer pays a separate 15% above £5,000 — that never comes out of your pay, but it's part of why the gap between what a job costs and what you receive is so wide.
Student loans
| Plan | You repay 9% above | Notes |
|---|---|---|
| Plan 1 | £26,900 | Pre-2012 England/Wales; all Northern Ireland |
| Plan 2 | £29,385 | 2012–2023 England/Wales; threshold frozen from April 2027 to 2030 |
| Plan 4 | £33,795 | Scotland (SAAS) |
| Plan 5 | £25,000 | England from September 2023 |
| Postgraduate | £21,000 at 6% | Stacks on top of an undergraduate plan |
See what it means for your salary
Numbers in a table are abstract; your own payslip isn't. Put your salary into the tax calculator and watch the bands apply to you, line by line.
Common questions
What are the UK tax bands for 2026/27?
In England, Wales and Northern Ireland: no tax on the first £12,570 (your Personal Allowance), 20% on income up to £50,270, 40% up to £125,140 and 45% above that. Scotland has six bands of its own, from 19% to 48%.
What is the Personal Allowance in 2026/27?
£12,570 — the amount you can earn tax-free. It falls by £1 for every £2 you earn above £100,000, and reaches zero at £125,140.
How much National Insurance do employees pay in 2026/27?
8% on earnings between £12,570 and £50,270, then 2% on everything above. Your employer pays a separate 15% on top, which never comes out of your pay.
Are Scottish tax bands different?
Yes. Scotland sets its own bands: 19% starter, 20% basic, 21% intermediate, then 42% from £43,663, 45% from £75,000 and 48% above £125,140. Lower earners pay slightly less than in the rest of the UK; higher earners pay more.