Complete UK Tax Guide 2026/27
Income tax bands, National Insurance, student loans, capital gains, dividends, pensions and property tax for the tax year 6 April 2026 to 5 April 2027, with a take-home pay calculator. Updated September 2026.
Work Out Your Take-Home Pay
Enter your salary to see your Income Tax, National Insurance, student loan repayments and take-home pay for 2026/27. Use the guide below to understand every rate, band and deadline.
UK Take-Home Pay Calculator
Tax year 2026/27 · Income Tax, National Insurance and student loans.
2026/27 Tax Essentials
The four numbers most people need
£12,570 Personal Allowance
Your tax-free income. It is frozen until April 2031, shrinks by £1 for every £2 above £100,000, and is nil at £125,140.
20%, 40% and 45% Income Tax
In England, Wales and Northern Ireland: 20% up to £50,270, 40% up to £125,140 and 45% above. Scotland has six bands from 19% to 48%.
8% and 2% National Insurance
Employees pay 8% on earnings between £12,570 and £50,270 and 2% above. Self-employed Class 4 is 6% and 2%.
Tax Year Runs 6 April to 5 April
The 2026/27 tax year ends on 5 April 2027. Use your ISA, pension and capital gains allowances before then.
What’s New in 2026/27
Most Income Tax and National Insurance thresholds are frozen, but several rates, reliefs and reporting rules changed on 6 April 2026, and more are already set for April 2027.
Changed From 6 April 2026
Already in force this tax year
Higher dividend tax rates
The ordinary and upper dividend rates rose by 2 percentage points to 10.75% and 35.75%. The additional rate stays at 39.35%.
Making Tax Digital for Income Tax
Sole traders and landlords with qualifying income above £50,000 must now keep digital records and send quarterly updates.
Scottish starter and basic bands widened
The 19% and 20% bands rose by 7.4%, while the higher, advanced and top thresholds were frozen.
Plan 5 student loan repayments begin
Plan 5 borrowers repay 9% above £25,000. Plan 1, 2 and 4 thresholds also rose.
Business Asset Disposal Relief now 18%
The rate rose from 14% to 18% on the first £1 million of qualifying lifetime gains. The Blind Person’s Allowance rose to £3,250.
Coming Next
Announced changes and dates to watch
Autumn Budget: 28 October 2026
The next major fiscal event. Any changes it announces would usually apply from April 2027 or later.
6 April 2027: cash ISA limit
The annual cash ISA limit is due to fall to £12,000 for under-65s. The overall ISA limit stays at £20,000.
6 April 2027: savings and property income
Tax rates on savings and property income are due to rise by 2 percentage points.
6 April 2027: pensions and Inheritance Tax
Most unused pension funds are due to come within the scope of Inheritance Tax.
Making Tax Digital widens
The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Salary sacrifice pension National Insurance relief is capped at £2,000 a year from April 2029.
Income Tax Rates & Bands
Bands are shown for income including the standard £12,570 Personal Allowance. Scottish rates apply to earnings, pensions and most other non-savings, non-dividend income.
England, Wales & Northern Ireland
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £16,537 | 19% |
| Basic rate | £16,538 – £29,526 | 20% |
| Intermediate rate | £29,527 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Take-Home Pay Examples 2026/27
| Gross Salary | Income Tax | National Insurance | Take-Home (Year) | Take-Home (Month) |
|---|---|---|---|---|
| £25,000 | £2,486 | £994 | £21,520 | £1,793 |
| £30,000 | £3,486 | £1,394 | £25,120 | £2,093 |
| £40,000 | £5,486 | £2,194 | £32,320 | £2,693 |
| £50,000 | £7,486 | £2,994 | £39,520 | £3,293 |
| £60,000 | £11,432 | £3,211 | £45,357 | £3,780 |
| £80,000 | £19,432 | £3,611 | £56,957 | £4,746 |
| £100,000 | £27,432 | £4,011 | £68,557 | £5,713 |
Examples are for England, Wales and Northern Ireland with a standard tax code, no student loan and no pension contributions. Use the calculator above for your own figures.
Key Rates & Allowances
The main UK tax rates, thresholds and allowances for the 2026/27 tax year in one place.
| Tax or Allowance | 2026/27 | Notes |
|---|---|---|
| National Insurance | ||
| Employee Class 1 | 8% / 2% | 8% from £12,570 to £50,270, 2% above |
| Employer Class 1 | 15% | On pay above £5,000 a year per employee |
| Self-employed Class 4 | 6% / 2% | 6% on profits £12,570 to £50,270, 2% above |
| Voluntary Class 2 / Class 3 | £3.65 / £18.40 a week | To protect State Pension entitlement |
| Allowances and reliefs | ||
| Personal Allowance | £12,570 | Tapered from £100,000, nil at £125,140 |
| Marriage Allowance | £1,260 | Can save a couple up to £252 a year |
| Blind Person’s Allowance | £3,250 | Added to the Personal Allowance |
| Trading allowance / property allowance | £1,000 each | Tax-free gross income from self-employment or renting |
| Rent a Room relief | £7,500 | Tax-free income from letting a room in your home |
| Savings and dividends | ||
| Personal Savings Allowance | £1,000 / £500 / £0 | Basic / higher / additional rate taxpayers |
| Starting rate for savings | Up to £5,000 at 0% | Reduces £1 for £1 of other income above £12,570 |
| Dividend allowance | £500 | Tax-free dividends |
| Dividend tax rates | 10.75% / 35.75% / 39.35% | Basic / higher / additional rate |
| Capital gains | ||
| Annual exempt amount | £3,000 | Tax-free gains each year |
| Capital Gains Tax rates | 18% / 24% | Applies to residential property and other assets |
| Business Asset Disposal Relief | 18% | First £1 million of qualifying lifetime gains |
| Pensions and ISAs | ||
| Pension annual allowance | £60,000 | Tapered for very high earners |
| Money purchase annual allowance | £10,000 | After flexibly accessing a pension |
| ISA allowance | £20,000 | Junior ISA £9,000. Lifetime ISA £4,000 within the total |
| Inheritance Tax | ||
| Nil-rate band | £325,000 | 40% on the excess. 36% if 10% of the estate goes to charity |
| Residence nil-rate band | £175,000 | For homes left to direct descendants. Reduced for estates over £2 million |
| Student loan repayment thresholds | ||
| Plan 1 / Plan 2 | £26,900 / £29,385 | 9% of income above the threshold |
| Plan 4 / Plan 5 | £33,795 / £25,000 | 9% of income above the threshold |
| Postgraduate Loan | £21,000 | 6% of income above the threshold |
Sources: GOV.UK, HMRC and the Scottish Government. Thresholds are for the 2026/27 tax year (6 April 2026 to 5 April 2027).
How UK Tax Works
Six plain-English chapters covering the taxes most people meet, from your payslip to your estate.
1. Income Tax & Tax Codes
How PAYE takes tax from your pay
Income Tax applies to wages, pensions, self-employed profits, rental income and other taxable income above your Personal Allowance. Most employees and pensioners pay through PAYE, so tax is taken before you are paid.
Your tax code tells your employer how much tax-free pay you get. The standard code for 2026/27 is 1257L, meaning £12,570. BR taxes all income at 20%, 0T gives no allowance, and K codes add untaxed income or benefits to your taxable pay. Check yours on your payslip or in your HMRC online account.
- Worked example: £45,000 salary in England
- Taxable income: £45,000 − £12,570 = £32,430
- Income Tax: £32,430 × 20% = £6,486
- National Insurance: £32,430 × 8% = £2,594.40
- Take-home pay: about £35,920 a year (£2,993 a month)
2. National Insurance
Contributions towards the State Pension and benefits
National Insurance is separate from Income Tax. You need 35 qualifying years for the full new State Pension and at least 10 to receive any. Employees stop paying National Insurance at State Pension age.
- Employees (Class 1): 8% on earnings from £12,570 to £50,270 and 2% above.
- Employers: 15% on pay above £5,000 a year per employee, with a £10,500 Employment Allowance for eligible employers.
- Self-employed (Class 4): 6% on profits from £12,570 to £50,270 and 2% above. Class 2 is no longer compulsory.
- Voluntary contributions: Class 2 costs £3.65 a week and Class 3 costs £18.40 a week to fill gaps in your record.
3. Self-Employment & Self Assessment
Returns, payments on account and Making Tax Digital
You normally need to file a Self Assessment return if you are self-employed with gross income above the £1,000 trading allowance, are a landlord, a company director, have income over £100,000, or have other untaxed income or gains.
- Deadlines: register by 5 October after the tax year ends, file online by 31 January and pay any tax due by the same date.
- Payments on account: usually two payments of half last year’s bill, due 31 January and 31 July.
- Penalties: a late return attracts an immediate £100 penalty, with more for continued delay.
- Making Tax Digital: from April 2026 sole traders and landlords with qualifying income over £50,000 keep digital records and send four quarterly updates a year, falling to £30,000 in April 2027 and £20,000 in April 2028.
4. Dividends, Savings & Capital Gains
Tax on investments and asset sales
- Dividends: the first £500 is tax-free. After that the rates are 10.75% (basic), 35.75% (higher) and 39.35% (additional).
- Savings interest: a Personal Savings Allowance of £1,000 (basic rate) or £500 (higher rate). Additional-rate taxpayers get none. Interest above it is taxed at your normal rate.
- Capital Gains Tax: gains above the £3,000 annual exempt amount are taxed at 18% within your unused basic rate band and 24% above it.
- Reporting: sales of UK residential property must be reported and paid within 60 days of completion.
- Spouses: transfers between spouses and civil partners are normally free of Capital Gains Tax, so each person can use their own allowances and bands.
5. Property Taxes
Stamp Duty, landlords and letting income
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) is charged on each slice of the price:
- 0% up to £125,000, then 2% to £250,000.
- 5% from £250,001 to £925,000, 10% to £1.5 million and 12% above.
- First-time buyers: 0% up to £300,000 and 5% from £300,001 to £500,000. No relief if the price is over £500,000.
- Additional properties: a 5% surcharge on top of standard rates.
Scotland charges LBTT and Wales charges LTT, each with different bands. Landlords can use the £1,000 property allowance or deduct actual expenses, and get a 20% tax credit on mortgage interest.
6. Pensions, ISAs & Inheritance Tax
Saving, investing and passing on wealth
- Pensions: the annual allowance is £60,000 (tapered for very high earners). Basic-rate relief is added automatically, and higher-rate taxpayers can claim extra relief through Self Assessment.
- ISAs: a £20,000 annual allowance with tax-free interest, dividends and gains. A Lifetime ISA takes up to £4,000 of that with a 25% government bonus.
- Inheritance Tax: 40% on estates above the £325,000 nil-rate band, plus up to £175,000 residence nil-rate band for homes left to direct descendants. Gifts made more than seven years before death are normally exempt, and you can give £3,000 a year without it counting.
- From April 2027: most unused pension funds are due to fall within Inheritance Tax.
Ways to Reduce Your Tax Legally
Simple, well-known steps that make the most of the allowances the tax system already gives you.
Use What You Are Owed
Allowances and reliefs many people miss
Fill your ISA and pension
Use the £20,000 ISA allowance and pension tax relief each year. Unused ISA allowance cannot be carried forward past 5 April.
Claim the Marriage Allowance
If one partner earns under £12,570 and the other is a basic-rate taxpayer, you can transfer £1,260 of allowance and save up to £252 a year.
Share assets between spouses
Transfers between spouses are tax-free, so income-producing assets and gains can be arranged to use both sets of allowances and bands.
Manage Your Income Level
Steps that cut the effective rate
Escape the 60% trap
If your income is between £100,000 and £125,140, pension contributions or Gift Aid donations reduce adjusted net income and can restore your Personal Allowance.
Watch the Child Benefit charge
The High Income Child Benefit Charge starts at £60,000 of adjusted net income and reaches the full amount at £80,000. Pension contributions can lower the charge.
Check your tax code and claim refunds
Wrong codes cause overpaid tax. Check your code each year and claim relief for qualifying job expenses through your HMRC online account.
Key UK Tax Dates
Important deadlines from autumn 2026 to the end of the 2026/27 tax year.
| Date | What Happens | Who It Affects |
|---|---|---|
| 5 October 2026 | Register for Self Assessment for 2025/26 | New self-employed, landlords, others with untaxed income |
| 28 October 2026 | Autumn Budget | Everyone |
| 31 October 2026 | Paper Self Assessment return deadline for 2025/26 | Paper filers |
| 5 November 2026 | Making Tax Digital quarterly update (6 July to 5 October) | MTD sole traders and landlords |
| 30 December 2026 | File online to have small underpayments (under £3,000) collected through your tax code | Employees who file a return |
| 31 January 2027 | Online return, balancing payment and first payment on account | Self Assessment taxpayers |
| 5 February 2027 | Making Tax Digital quarterly update (6 October to 5 January) | MTD sole traders and landlords |
| 5 April 2027 | 2026/27 tax year ends. Use ISA, pension and capital gains allowances | Everyone |
| 6 April 2027 | New tax year. Cash ISA limit, Making Tax Digital at £30,000 and pensions in Inheritance Tax due to begin | Everyone |
| 5 May 2027 | Making Tax Digital quarterly update (6 January to 5 April) | MTD sole traders and landlords |
| 31 July 2027 | Second payment on account | Self Assessment taxpayers |
Dates are based on standard HMRC deadlines and may change. Check GOV.UK for your own deadlines.
UK Tax FAQ
Answers to the most frequently asked questions about UK tax rates, allowances and deadlines in 2026/27.
The standard Personal Allowance is £12,570 for the 2026/27 tax year (6 April 2026 to 5 April 2027). It is reduced by £1 for every £2 of adjusted net income above £100,000 and is nil once income reaches £125,140. The allowance and the basic rate band are frozen until April 2031.
In England, Wales and Northern Ireland the rates are 20% on income from £12,571 to £50,270, 40% from £50,271 to £125,140 and 45% above £125,140, assuming a full Personal Allowance. Scotland sets its own bands for earnings and pensions: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top rate.
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% on earnings above £50,270. Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270 and 2% above. Employers pay 15% on earnings above £5,000 a year per employee. National Insurance is charged at the same rates in Scotland.
The dividend allowance is £500. The Personal Savings Allowance is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, with none for additional-rate taxpayers, and a 0% starting rate for savings of up to £5,000 is available if other income is low. The trading allowance and property allowance are each £1,000. Dividend rates from April 2026 are 10.75% (basic), 35.75% (higher) and 39.35% (additional).
For the 2025/26 tax year, register for Self Assessment by 5 October 2026, file a paper return by 31 October 2026, or file online and pay any tax due by 31 January 2027. Payments on account, where they apply, are due on 31 January and 31 July. Sole traders and landlords with qualifying income above £50,000 must also follow Making Tax Digital for Income Tax from April 2026, with the threshold falling to £30,000 in April 2027 and £20,000 in April 2028.
Between £100,000 and £125,140 of adjusted net income the Personal Allowance is withdrawn at £1 for every £2 earned. Combined with the 40% higher rate this creates an effective Income Tax rate of 60% on that slice of income, or 62% including National Insurance. Paying into a pension or making Gift Aid donations reduces adjusted net income and can restore some or all of the allowance.
You repay 9% of income above the threshold for Plan 1 (£26,900), Plan 2 (£29,385), Plan 4 (£33,795) and Plan 5 (£25,000), and 6% of income above £21,000 for a Postgraduate Loan. Repayments are collected through PAYE or Self Assessment. Plan 5 repayments start from April 2026.
Most gains are taxed at 18% within the basic rate band and 24% above it, for residential property and other assets alike. The annual exempt amount is £3,000. Business Asset Disposal Relief is taxed at 18% on the first £1 million of qualifying lifetime gains. Gains on UK residential property must be reported and paid within 60 days of completion.
Standard residential rates are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. First-time buyers pay 0% up to £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000. Additional properties pay a 5% surcharge. Scotland uses LBTT and Wales uses LTT, each with its own rates.
The Autumn Budget is scheduled for 28 October 2026. Already announced for 6 April 2027 are a £12,000 cash ISA limit for under-65s, higher tax rates on savings and property income, most unused pension funds coming into scope for Inheritance Tax, and Making Tax Digital for Income Tax extending to income above £30,000. Check GOV.UK for the latest position.