Official 2026/27 RatesUnited Kingdom Income Tax Bands
Complete guide to income tax rates, brackets, and thresholds in United Kingdom for the 2026/27 tax year.
Income Tax Bands - 2026/27
The UK uses PAYE income tax bands with a standard Personal Allowance. England, Wales, and Northern Ireland share the same non-savings income tax rates. Scotland sets separate rates and bands for earned income.
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Above £125,140 | 45% |
Personal Allowance Taper
The standard Personal Allowance is £12,570. It reduces by£1 for every £2 of adjusted net income above £100,000 and reaches zero at£125,140.
Scottish Income Tax Bands
Scottish bands below show total employment income ranges assuming the full standard Personal Allowance is available.
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £0 - £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 | Above £125,140 | 48% |
National Insurance Contributions
Employee NI Category A
8% / 2%8% on earnings from £12,570 to £50,270, then 2% above £50,270.
Employer NI Standard
15%15% above the Secondary Threshold of £5,000.
Under 21 / Apprentice / Veteran
£50,270Employer NI is only due above this higher secondary threshold where conditions are met.
Freeport / Investment Zone
£25,000Employer NI relief uses a £25,000 secondary threshold for qualifying employees.
Student Loan and Postgraduate Loan Thresholds
| Loan Type | Annual Threshold | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
National Minimum Wage
National Living Wage (21+)
£12.71/hour
From 1 April 2026. This is approximately £24,785/year at 37.5 hours/week or £26,437/year at 40 hours/week.
Official Sources Used
HMRC/GOV.UK rates and thresholds for employers 2026 to 2027, Scottish Government Income Tax 2026 to 2027, GOV.UK student loan guidance, and GOV.UK National Minimum Wage in 2026.
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