UK Tax Rates 2026/27
A plain-English reference for the main UK tax rates and thresholds for the 2026/27 tax year. The employment-income figures below are the same values our calculators use. Always check the official source before relying on a figure.
Personal Allowance
The Personal Allowance is the amount of income you can receive each tax year before paying Income Tax.
| Item | Amount |
|---|---|
| Standard Personal Allowance | £12,570 |
Personal Allowance taper
The Personal Allowance is reduced for higher incomes. For every £2 of income above the taper threshold, £1 of allowance is lost, until it reaches zero.
| Item | Value |
|---|---|
| Taper threshold (income above which the allowance reduces) | £100,000 |
| Reduction rate | £1 lost per £2 of income above the threshold |
| Allowance fully removed at | £125,140 |
Income Tax — England, Wales & Northern Ireland
These rates apply to non-savings, non-dividend income for taxpayers in England, Wales and Northern Ireland. The bands below are the amounts of taxable income (after the Personal Allowance) charged at each rate.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scottish Income Tax
Scotland sets its own Income Tax bands and rates for non-savings, non-dividend income. The Personal Allowance is the same UK-wide; the bands below apply above it.
| Band | Taxable income | Rate |
|---|---|---|
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £137,710 | 45% |
| Top rate | Over £137,710 | 48% |
National Insurance (employee)
Employees pay Class 1 National Insurance on earnings above the primary threshold. National Insurance is UK-wide and is not affected by Scottish Income Tax bands.
| Earnings band | Rate |
|---|---|
| Up to £12,570 (primary threshold) | 0% |
| £12,570 to £50,270 (upper earnings limit) | 8% |
| Above £50,270 | 2% |
Employer National Insurance
Employers pay National Insurance on their employees' earnings above the secondary threshold. This is a cost to the employer and is not deducted from the employee's pay.
| Item | Value |
|---|---|
| Secondary threshold | £5,000 |
| Employer rate above the threshold | 15% |
Student loans
Student loan repayments are a percentage of income above the annual threshold for your plan. Plans 1, 2, 4 and 5 repay at 9%.
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
Postgraduate loans
Postgraduate loans are repaid separately from undergraduate plans, at a lower rate, and can apply at the same time as another plan.
| Loan | Annual threshold | Rate above threshold |
|---|---|---|
| Postgraduate loan | £21,000 | 6% |
Dividend tax
Dividends are taxed separately from other income. A tax-free dividend allowance applies first, and dividends above it are taxed at rates that depend on your Income Tax band. The figures below are summarised from GOV.UK; check the official page for the current allowance and rates.
Savings allowance
Most people can earn some interest on savings tax-free through the Personal Savings Allowance, the level of which depends on your Income Tax band. A separate starting rate for savings can apply to lower incomes. See the official GOV.UK guidance for the current amounts.
Capital Gains Tax
Capital Gains Tax (CGT) is charged on the gain when you sell or dispose of certain assets above the annual exempt amount. Rates depend on the type of asset and your Income Tax band. Refer to the official GOV.UK guidance for the current annual exempt amount and rates.
Corporation Tax
Corporation Tax is paid by limited companies on their profits. The rate a company pays depends on its level of profits, with a small-profits rate, a main rate, and marginal relief in between. See the official GOV.UK guidance for current rates and thresholds.
VAT
VAT (Value Added Tax) is charged on most goods and services. There is a standard rate, a reduced rate for some goods and services, and a zero rate for others, plus a registration threshold for businesses. Refer to the official GOV.UK guidance for the current rates and threshold.
Pension allowances
Tax relief on pension contributions is subject to an annual allowance, which can be tapered for high earners and reduced once you begin drawing certain benefits. See the official GOV.UK guidance for the current annual allowance and any tapering.
Historical tax years
TaxEngines keeps recent tax years available so you can check historical figures. The employment-income calculators support the following years, selectable within each calculator.
| Tax year | Status |
|---|---|
| 2026/27 | Current |
| 2025/26 | Available |
| 2024/25 | Available |
Official references
These official sources are the authoritative reference for UK tax rates and thresholds. Where our figures are summarised, the official page takes precedence.
Frequently asked questions
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Are the employment figures the same as the calculators use?
Why are some sections shown as reference only?
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These figures are provided for reference and may be simplified. Some values are summarised from HMRC and GOV.UK guidance. For official and complete figures, always check the linked GOV.UK sources.