Money

UK Income Tax Rates and Personal Allowance for 2026 to 2027

2 min read

In this guide
  1. Quick answer
  2. What are the bands?
  3. Other allowances
  4. Where to check your own figures
  5. Common mistakes
  6. FAQ
    1. Does my residency matter?
    2. Do I need to file a return?
  7. Key takeaways
  8. Related guides
  9. Sources

UK Income Tax rates apply to your income above the Personal Allowance. If you have just moved to the UK, understanding the bands helps you read your payslip and plan your budget. The figures below are for the tax year 6 April 2026 to 5 April 2027, as shown on GOV.UK.

Quick answer

  • The standard Personal Allowance is £12,570 a year, tax-free.
  • Basic rate is 20%, higher rate 40% and additional rate 45%.
  • The allowance falls by £1 for every £2 of adjusted net income above £100,000 and is zero at £125,140 or more.
  • Scotland has different bands.

What are the bands?

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%

These bands assume a standard Personal Allowance.

Other allowances

You have tax-free allowances for savings interest and dividend income. You may also have a £1,000 trading allowance for self-employment income and a £1,000 allowance for property income, unless you use the Rent a Room scheme.

Where to check your own figures

If you are employed or get a pension, your personal tax account shows your Personal Allowance, tax code and tax paid so far. Our guides on the emergency tax code and your payslip explain what you see.

Common mistakes

  • Assuming all income is taxed at the same rate. Each band applies only to the slice of income in it.
  • Forgetting the allowance taper above £100,000.
  • Applying English bands to Scottish taxpayers.

FAQ

Does my residency matter?

Yes. See UK tax residence and the Statutory Residence Test.

Do I need to file a return?

Some people do. See Self Assessment tax returns.

Key takeaways

  • Know your band and allowance.
  • Check your tax code on your payslip.
  • Check rates every tax year.

Last updated: October 2026. General information, not tax advice. Rates change each tax year.

Sources

  • GOV.UK: Income Tax rates and Personal Allowances

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