UK Tax-Free Allowances 2026
Discover every tax-free allowance available to you in the 2026/2027 tax year. Use our calculator to maximize your tax-free income and keep more of your money.
Check Your Tax-Free Allowances
Enter your income details below to estimate your total tax-free allowances and see how much of your income is protected from tax in 2026/2027.
Allowance Estimator
Find out exactly how much of your income is tax-free.
How to Maximize Allowances
Smart strategies for the 2026/2027 tax year
Utilize Marriage Allowance
If one partner earns under £12,570 and the other is a basic rate taxpayer, transfer £1,260 of the Personal Allowance to save up to £252 in tax.
Maximize ISA Contributions
Interest earned within a Stocks & Shares ISA or Cash ISA is completely tax-free and does not count towards your Personal Savings Allowance.
Claim Blind Person’s Allowance
If you are registered blind, you automatically receive an extra £3,070 on top of your standard Personal Allowance, reducing your taxable income.
Understand the £100k Taper
If your income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 earned. Consider pension contributions to lower your adjusted net income.
2026/2027 Tax-Free Allowances
A complete overview of the tax-free allowances available to UK taxpayers for the 2026/2027 tax year.
| Allowance Type | 2026/2027 Limit | Who Qualifies? |
|---|---|---|
| Personal Allowance | £12,570 | Most UK residents. Tapers to zero if income exceeds £100,000. |
| Marriage Allowance | £1,260 (transferable) | Married couples/civil partners where one earns under £12,570 and the other is a basic rate taxpayer. |
| Blind Person’s Allowance | £3,070 | Individuals officially registered as blind with their local council. |
| Personal Savings Allowance | £1,000 (Basic) / £500 (Higher) | Basic and higher rate taxpayers. Additional rate taxpayers get £0. |
| Dividend Allowance | £500 | All taxpayers. Applies to dividend income from shares and investments. |
| Trading Allowance | £1,000 | Individuals with casual, freelance, or self-employment gross income. |
| Property Allowance | £1,000 | Individuals with gross income from land or property in the UK. |
| Capital Gains Annual Exempt | £3,000 | Individuals selling chargeable assets (e.g., second homes, non-ISA shares). |
Tax-Free Allowances FAQ
Answers to the most frequently asked questions about UK tax-free allowances, eligibility, and how to claim them.
The standard Personal Allowance for the 2026/2027 tax year is £12,570. This is the amount of income you can earn before you start paying Income Tax. It remains frozen at this level until April 2028, meaning ‘fiscal drag’ will continue to pull more earners into the higher tax bracket.
Marriage Allowance allows you to transfer £1,260 of your Personal Allowance to your husband, wife, or civil partner. This is only beneficial if the transferor earns less than £12,570 and the recipient is a basic rate taxpayer (earning between £12,571 and £50,270). It can reduce their tax bill by up to £252 in the tax year.
The Personal Savings Allowance lets you earn a certain amount of savings interest tax-free. Basic rate taxpayers can earn up to £1,000 in interest tax-free, higher rate taxpayers can earn up to £500, and additional rate taxpayers (earning over £125,140) get no Personal Savings Allowance.
If your total gross income from self-employment, casual services, or hiring out personal equipment is £1,000 or less in a tax year, it is fully covered by the Trading Allowance. You do not need to declare this income to HMRC or pay tax on it. If it exceeds £1,000, you must register for Self Assessment and can choose to deduct either the £1,000 allowance or your actual allowable expenses.