What are the UK income tax rates for 2026?

UK income tax rates are: 0% on the first £12,570 (Personal Allowance), 20% Basic Rate on £12,571-£50,270, 40% Higher Rate on £50,271-£125,140, and 45% Additional Rate on income over £125,140.

How is UK income tax calculated?

UK income tax is calculated in bands. You don't pay tax on income up to your Personal Allowance (£12,570). Then you pay 20% on the Basic Rate band, 40% on the Higher Rate band, and 45% on the Additional Rate band.

UK Income Tax Rates and Brackets (2026/27): Complete Guide

UK income tax ranges from 0% to 45% depending on your income band. Here’s how the tax system works and how much you’ll pay.

UK Income Tax Rates 2026/27

Tax Band	Taxable 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%

Note: Personal Allowance reduces by £1 for every £2 earned over £100,000.

Tax Calculation Examples

£30,000 Salary

Band	Taxable Amount	Rate	Tax
Personal Allowance	£12,570	0%	£0
Basic Rate	£17,430	20%	£3,486
Total Tax			£3,486

£60,000 Salary

Band	Taxable Amount	Rate	Tax
Personal Allowance	£12,570	0%	£0
Basic Rate	£37,700	20%	£7,540
Higher Rate	£9,730	40%	£3,892
Total Tax			£11,432

£100,000 Salary

Band	Taxable Amount	Rate	Tax
Personal Allowance	£12,570	0%	£0
Basic Rate	£37,700	20%	£7,540
Higher Rate	£49,730	40%	£19,892
Total Tax			£27,432

Personal Allowance Reduction

Income	Personal Allowance	Effective Rate
£100,000	£12,570	27.4%
£110,000	£7,570	33.0%
£120,000	£2,570	37.5%
£125,140+	£0	40%

The £100,000-£125,140 range has an effective 60% marginal rate due to allowance tapering.

Scottish Income Tax Rates

Scotland has different rates:

Tax Band	Taxable Income	Rate
Personal Allowance	£0 - £12,570	0%
Starter Rate	£12,571 - £14,876	19%
Basic Rate	£14,877 - £26,561	20%
Intermediate Rate	£26,562 - £43,662	21%
Higher Rate	£43,663 - £75,000	42%
Advanced Rate	£75,001 - £125,140	45%
Top Rate	Over £125,140	48%

Tax-Free Income

These don’t count toward taxable income:

Source	Limit
ISA interest/gains	Unlimited
Personal Savings Allowance	£1,000 (basic), £500 (higher)
Dividend Allowance	£500
Rent-a-room relief	£7,500/year
Premium Bond prizes	Unlimited

National Insurance (In Addition)

Earnings	Employee NI Rate
£0 - £12,570	0%
£12,571 - £50,270	8%
Over £50,270	2%

Combined marginal rates (Income Tax + NI):

Basic Rate band: 28%
Higher Rate band: 42%

Take-Home Pay Examples

Gross Salary	Income Tax	NI	Take-Home (Monthly)
£25,000	£2,486	£1,007	£1,792
£35,000	£4,486	£1,807	£2,392
£50,000	£7,486	£3,007	£3,292
£75,000	£17,432	£3,507	£4,505
£100,000	£27,432	£4,007	£5,713

How to Reduce Your Tax Bill

Strategy	Tax Saving
Pension contributions	Full marginal rate
Salary sacrifice	NI + income tax
Marriage Allowance	£252/year
Gift Aid donations	Reclaim tax paid
ISA investing	Tax-free growth

Marriage Allowance

If you earn under £12,570 and your partner is a basic rate taxpayer:

Transfer £1,260 of your allowance
Partner saves £252/year
You can backdate 4 years (up to £1,260 total)

Payment Methods

Employment Type	How Tax is Collected
Employed (PAYE)	Automatic from pay
Self-employed	Self Assessment
Multiple jobs	Tax code allocation
Pension income	Usually PAYE

Key Deadlines

Deadline	Date
Tax year end	5 April
Self Assessment registration	5 October
Paper tax return	31 October
Online tax return	31 January
Tax payment due	31 January

Bottom Line

Salary	Take-Home %	Effective Tax Rate
£25,000	86.0%	14.0%
£50,000	79.0%	21.0%
£75,000	72.1%	27.9%
£100,000	68.6%	31.4%

Tips:

Use your full pension allowance (reduces taxable income)
Maximise ISA contributions (tax-free growth)
Claim Marriage Allowance if eligible
Salary sacrifice for additional NI savings

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