UK Income Tax Guide 2026
Understand the 2026/27 tax brackets, personal allowances, and National Insurance rates. Estimate your take-home pay instantly.
Estimate Your Tax Liability
Enter your gross annual income below to instantly see an illustrative breakdown of your Income Tax, National Insurance, and estimated take-home pay for the 2026/27 tax year.
Income Tax Estimator
Get an instant breakdown of your 2026/27 tax deductions.
Understanding UK Tax
Key concepts for the 2026/27 tax year
Personal Allowance
The amount you can earn tax-free each year. For 2026/27, the standard allowance is £12,570, but it tapers to zero for incomes over £125,140.
Tax Bands
Income above the allowance is taxed at 20% (Basic), 40% (Higher), or 45% (Additional). Scotland uses a 5-band system with different thresholds.
National Insurance
Class 1 Employee NI is charged on earnings between the Primary Threshold and the Upper Earnings Limit. Rates and thresholds are set annually by the Chancellor.
Tax Codes
Your tax code (e.g., 1257L) tells your employer how much tax-free income you are entitled to. The number represents your allowance divided by 10.
2026/27 Income Tax Bands
Standard Income Tax rates and thresholds for England, Wales, and Northern Ireland. (Scotland differs slightly).
| Tax Band | Taxable Income Range | Tax Rate | Max Tax in Band |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | £0 |
| Basic Rate | £12,571 to £50,270 | 20% | £7,540 |
| Higher Rate | £50,271 to £125,140 | 40% | £29,948 |
| Additional Rate | Over £125,140 | 45% | Unlimited |
UK Income Tax FAQ
Answers to the most frequently asked questions about UK taxation, allowances, and HMRC requirements for 2026/27.
The standard Personal Allowance for the 2026/27 tax year is £12,570. This is the amount of income you can earn before you start paying Income Tax. It may be reduced if your income exceeds £100,000.
For England, Wales, and Northern Ireland, the bands are: Personal Allowance (up to £12,570) at 0%, Basic Rate (£12,571 to £50,270) at 20%, Higher Rate (£50,271 to £125,140) at 40%, and Additional Rate (over £125,140) at 45%.
If your adjusted net income is over £100,000, your Personal Allowance is reduced by £1 for every £2 of income above this threshold. Once your income reaches £125,140, your Personal Allowance is reduced to zero, creating an effective 60% marginal tax rate in this band.
You must file a Self Assessment if you are self-employed, a company director, have untaxed income (like rental income or dividends) over £1,000, or earn over £100,000 annually. Most standard PAYE employees do not need to file.
The ‘L’ indicates that you are entitled to the standard Personal Allowance of £12,570. The numbers are the allowance divided by 10. Other letters (like M, N, or BR) indicate different circumstances, such as Marriage Allowance or being taxed at a flat rate.