Income Tax rates and bands 2026/27: England, Wales and Northern Ireland

In England, Wales and Northern Ireland, 2026/27 Income Tax is 0% on the first £12,570, 20% up to £50,270, 40% up to £125,140 and 45% on anything above that. These bands apply to earnings, pensions, self-employed profits and rental profits. Savings interest and dividends follow the separate rules further down this page. The tax year runs from 6 April 2026 to 5 April 2027.

The table assumes you get the standard Personal Allowance. You get no Personal Allowance on taxable income above £125,140.

Wales has Welsh rates of Income Tax, which the Welsh Government sets. For 2026/27 they are the same as the rates in England and Northern Ireland; see our Welsh Income Tax bands guide. Scotland is different. Scottish taxpayers pay six rates on earnings and pensions, from a 19% starter rate to a 48% top rate. Use our Scottish Income Tax bands guide. Everyone in the UK uses the UK rates and bands for savings interest and dividends.

The Personal Allowance of £12,570 and the basic rate limit of £37,700 are frozen until 5 April 2031. That keeps the higher-rate threshold at £50,270 until then. The freeze was extended at Budget 2025. Finance Act 2021 had already fixed these thresholds at their April 2021 levels, and later legislation kept them there to April 2028. The National Insurance primary threshold and upper earnings limit stay in line with the Income Tax thresholds for the same period.

A freeze means that as pay rises, more of your income falls into the higher bands. HMRC's impact note for the extension estimates it will bring 700,000 more people into Income Tax by 2030/31 than if the thresholds had gone up with inflation.

More rate changes are already legislated. From 6 April 2027 the savings rates rise to 22% (basic), 42% (higher) and 47% (additional). Property income gets its own rates from the same date: 22%, 42% and 47%. For 2026/27, savings interest and rental profits are still taxed at 20%, 40% and 45%.

If your adjusted net income is over £100,000, you lose £1 of Personal Allowance for every £2 of income above that level. At £125,140 the allowance is gone completely. Adjusted net income is your total taxable income minus certain reliefs. The main ones are the grossed-up amount of Gift Aid donations and personal pension contributions that already got basic-rate relief, which means you take off £1.25 for every £1 you paid. HMRC explains the steps in its adjusted net income guidance.

Example: on £110,000 of income, your allowance falls by £5,000 to £7,570. You pay 20% on the next £37,700 (£7,540) and 40% on the remaining £64,730 (£25,892), so £33,432 in total. Between £100,000 and £125,140, each extra £1 of income costs 40p in higher-rate tax and also removes 50p of allowance, which is taxed at 40%. That works out at an effective rate of 60% in this band. Our £100k tax trap guide explains ways to reduce adjusted net income.

Some people get a bigger allowance. You can get Blind Person's Allowance on top of the standard allowance. Marriage Allowance lets a lower earner move part of their allowance to a spouse or civil partner. Your tax code shows which allowance HMRC is giving you.

You get a £500 dividend allowance. Dividends above it are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band. Dividends covered by unused Personal Allowance are tax-free, and so are dividends from shares held in an ISA. Add your dividends to your other income to see which band they fall in. For example, someone earning £45,000 who gets £2,000 of dividends stays in the basic-rate band. They pay nothing on the first £500 of dividends and 10.75% on the other £1,500, which is £161.25.

Three allowances can cover savings interest. The first is any Personal Allowance your other income doesn't use. The second is the starting rate for savings: if your other taxable income is below £17,570, up to £5,000 of interest can be tax-free, and this reduces by £1 for every £1 of other income above the Personal Allowance. The third is the Personal Savings Allowance, which depends on your band (see the table). A higher-rate taxpayer with £800 of interest pays 40% on £300, which is £120.

Your bank or building society reports interest to HMRC, and HMRC usually collects any tax through your tax code. If your savings interest is over £10,000, you need to file a Self Assessment return. You also need Self Assessment if your dividends are over £10,000. If you have tax to pay on dividends of £10,000 or less and don't normally file a return, tell HMRC after the tax year ends and before 5 October.

Most employees are in National Insurance category A. For 2026/27 they pay nothing on the first £242 a week (£1,048 a month, or £12,570 a year), 8% on earnings from £242.01 to £967 a week, and 2% on everything above £967 a week (£4,189 a month, or £50,270 a year). If you earn £129 to £242 a week from one job, you don't pay anything, but your contributions are treated as paid, which protects your State Pension record.

Employers pay 15% on earnings above £96 a week (£5,000 a year). Employers of apprentices under 25, employees under 21 and some veterans get relief on earnings up to the upper threshold. Once you reach State Pension age you pay no employee Class 1 National Insurance. Your employer uses category C. Read more in our National Insurance guide.

On a £40,000 salary with the standard 1257L tax code, you pay 20% Income Tax on £27,430 (£40,000 minus £12,570), which is £5,486. You also pay 8% National Insurance on the same £27,430, which is £2,194.40. That leaves £32,319.60 a year before any pension contributions or student loan repayments.

The table shows annual figures. Payroll works out tax and NI each pay period, so your payslips may differ by a few pence. Pension contributions, salary sacrifice, student loans and benefits in kind all change the result. Our take-home pay calculator handles those, and how much tax will I pay? goes through more scenarios.

Your HMRC personal tax account shows your tax code and what you've paid this year. Use GOV.UK to check your Income Tax for the current year or estimate your Income Tax. If you think your code is wrong, contact HMRC. If you've overpaid, you can reclaim overpaid tax.

Citizens Advice and MoneyHelper give free, impartial guidance on tax and budgeting. You don't need to pay a firm to check a tax code or claim a straightforward refund.