UK tax rates and thresholds 2026/27
Income tax, National Insurance, student loans, statutory pay, Stamp Duty and allowances for 6 April 2026 to 5 April 2027, each with its GOV.UK source.
Checked against GOV.UK on 12 October 2026. These are the rates for the 2026/27 tax year (6 April 2026 to 5 April 2027).
Every rate and threshold our calculators use, in one place, with a link to the GOV.UK page it comes from. Each section says what the figures mean for you and which calculator works them out. Read how we calculate for how we check them, or tell us about a mistake.
Personal Allowance and taper
The Personal Allowance is the income you can earn each year before you pay any income tax. It shrinks once your adjusted net income goes over £100,000.
| Allowance | 2026/27 |
|---|---|
| Personal Allowance | £12,570 |
| Taper starts at adjusted net income of | £100,000 |
| Allowance reduced by | £1 for every £2 over £100,000 |
| Allowance is zero at | £125,140 |
| Blind Person's Allowance (added to your Personal Allowance) | £3,250 |
Work it out: income tax calculator. Source: Income Tax rates and Personal Allowances (GOV.UK) and Blind Person's Allowance (GOV.UK).
Income tax bands: England, Wales and Northern Ireland
The first £12,570 is tax-free. The bands below apply to your taxable income (pay after the Personal Allowance). The gross salary column shows the same bands as a salary, assuming you get the full allowance.
| Band | Taxable income | Gross salary | Rate |
|---|---|---|---|
| Basic rate | Up to £37,700 | £12,571 to £50,270 | 20% |
| Higher rate | £37,701 to £125,140 | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | Over £125,140 | 45% |
Between £100,000 and £125,140 you lose £1 of allowance for every £2 you earn, so each extra £1 in that range is taxed at an effective 60%.
Work it out: tax band calculator. Source: Income Tax rates and Personal Allowances (GOV.UK).
Scottish income tax bands
If you live in Scotland, these bands replace the ones above. National Insurance is the same across the UK. The first £12,570 is tax-free, and the gross salary column assumes you get the full allowance.
| Band | Taxable income | Gross salary | Rate |
|---|---|---|---|
| Starter rate | Up to £3,967 | £12,571 to £16,537 | 19% |
| Basic rate | £3,968 to £16,956 | £16,538 to £29,526 | 20% |
| Intermediate rate | £16,957 to £31,092 | £29,527 to £43,662 | 21% |
| Higher rate | £31,093 to £62,430 | £43,663 to £75,000 | 42% |
| Advanced rate | £62,431 to £125,140 | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | Over £125,140 | 48% |
Work it out: income tax calculator (choose Scotland). Source: Scottish Income Tax (GOV.UK).
National Insurance: employees and employers
Employees pay Class 1 National Insurance on earnings above £12,570 a year. Your employer pays its own National Insurance on top of your salary; it does not come out of your pay.
| Employee earnings a year | Employee rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Over £50,270 | 2% |
| Employer | 2026/27 |
|---|---|
| Secondary threshold | £5,000 a year (£96 a week) |
| Employer rate above the threshold | 15% |
| Lower earnings limit | 2026/27 |
|---|---|
| A year | £6,708 |
| A week | £129 |
Earning at least the lower earnings limit builds your National Insurance record, even though you pay nothing until you earn more than £12,570.
Work it out: National Insurance calculator. Source: National Insurance rates and categories (GOV.UK) and Rates and thresholds for employers 2026 to 2027 (GOV.UK).
Self-employed National Insurance: Class 2 and Class 4
If you are self-employed, you pay Class 4 National Insurance on your profits. Class 2 is no longer compulsory.
| Class 4 profits a year | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 6% |
| Over £50,270 | 2% |
| Class 2 | 2026/27 |
|---|---|
| Profits of £7,105 or more | Nothing to pay (treated as paid) |
| Profits under £7,105 | Voluntary, £3.65 a week |
Work it out: self-employed tax calculator. Source: Self-employed National Insurance rates (GOV.UK).
Student loan repayment thresholds
You repay a percentage of your income above your plan's threshold. If you earn less than the threshold, you repay nothing.
| Plan | Threshold a year | 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 loan | £21,000 | 6% |
Work it out: student loan calculator. Source: Repaying your student loan: what you pay (GOV.UK).
Dividend allowance and rates
The first £500 of dividends each year is tax-free. Dividends above that are taxed at a rate that depends on which income tax band they fall into once added to your other income.
| Dividends | 2026/27 |
|---|---|
| Dividend allowance | £500 |
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Work it out: dividend tax calculator. Source: Tax on dividends (GOV.UK).
National Living Wage and National Minimum Wage
These are the lowest hourly rates your employer can legally pay you, from 1 April 2026. The rate depends on your age and whether you are an apprentice.
| Age or status | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £12.71 |
| 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Apprentice | £8.00 |
Work it out: minimum wage calculator. Source: National Minimum Wage and National Living Wage rates (GOV.UK).
Statutory Sick Pay (SSP)
SSP is the minimum your employer must pay you when you are off sick. From 6 April 2026 it is paid from your first day off sick and there is no minimum earnings level.
| Statutory Sick Pay | From 6 April 2026 |
|---|---|
| Weekly rate | Lower of £123.25 or 80% of average weekly earnings |
| Paid from | First day of sickness |
| Lower earnings limit | None |
| Maximum | 28 weeks |
Work it out: sick pay calculator. Source: Statutory Sick Pay (GOV.UK).
Statutory Maternity Pay (SMP)
SMP is paid for up to 39 weeks. It is based on your average weekly earnings (AWE).
| Statutory Maternity Pay | 2026/27 |
|---|---|
| Weeks 1 to 6 | 90% of AWE (no cap) |
| Weeks 7 to 39 | £194.32 or 90% of AWE if lower |
| To qualify, AWE must be at least | £129 a week |
Statutory Paternity Pay and Statutory Adoption Pay use the same £194.32 weekly rate.
Work it out: maternity pay calculator. Source: Maternity pay and leave: pay (GOV.UK).
Child Benefit and the High Income Child Benefit Charge
Child Benefit is paid for each child. If you or your partner earn over £60,000, some or all of it is clawed back through a tax charge.
| Child Benefit | A week |
|---|---|
| Eldest or only child | £27.05 |
| Each additional child | £17.90 |
| High Income Child Benefit Charge | 2026/27 |
|---|---|
| Charge starts at adjusted net income of | £60,000 |
| Charge | 1% of Child Benefit for every £200 over £60,000 |
| Charge equals all your Child Benefit at | £80,000 |
Work it out: Child Benefit tax calculator. Source: Child Benefit rates (GOV.UK) and High Income Child Benefit Charge (GOV.UK).
Statutory redundancy pay limits
Statutory redundancy pay depends on your age, length of service and weekly pay. These caps apply to redundancies on or after 6 April 2026.
| Limit | Amount |
|---|---|
| Maximum weekly pay counted | £751 |
| Maximum statutory redundancy pay | £22,530 |
Work it out: redundancy pay calculator. Source: Redundancy pay (GOV.UK).
Stamp Duty Land Tax (England and Northern Ireland)
Stamp Duty is charged in slices: each rate applies only to the part of the price within that band. Scotland and Wales have their own property taxes.
| Part of the price | Standard rate | Additional property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
| First-time buyers | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Price over £500,000 | No relief, standard rates apply |
The additional property rates include the 5% surcharge on top of each standard band, for example when buying a second home.
Work it out: stamp duty calculator. Source: Stamp Duty Land Tax residential rates (GOV.UK).
Marriage Allowance
If you are married or in a civil partnership, the lower earner can transfer part of their Personal Allowance to the higher earner. Unmarried couples cannot use it.
| Marriage Allowance | 2026/27 |
|---|---|
| Amount transferred | £1,260 |
| Maximum tax saving | £252 a year |
| Lower earner | Income below the Personal Allowance (usually £12,570) |
| Higher earner | Basic rate taxpayer (usually £12,571 to £50,270) |
| Higher earner in Scotland | Starter, basic or intermediate rate (usually £12,571 to £43,662) |
| Backdating | Up to 4 tax years |
Work it out: Marriage Allowance calculator. Source: Marriage Allowance (GOV.UK).
Trading allowance
You can earn up to £1,000 a year from self-employment or casual work without paying tax on it. If you use the allowance, you cannot also deduct your expenses.
| Allowance | 2026/27 |
|---|---|
| Trading allowance | £1,000 a year |
Work it out: self-employed tax calculator. Source: Tax-free allowances on property and trading income (GOV.UK).
ISA and Lifetime ISA limits
Savings and investments held in an ISA are free of tax. A Lifetime ISA adds a government bonus when you save for a first home or later life.
| Limit | 2026/27 |
|---|---|
| ISA allowance | £20,000 a year |
| Lifetime ISA limit | £4,000 a year |
| Lifetime ISA bonus | 25% (up to £1,000 a year) |
| Lifetime ISA first-home price limit | £450,000 |
Work it out: savings goal calculator. Source: Individual Savings Accounts (GOV.UK) and Lifetime ISA (GOV.UK).
Pension annual allowance
This is the most that can go into your pensions each year with tax relief, counting your own, your employer's and any tax relief added.
| Allowance | 2026/27 |
|---|---|
| Pension annual allowance | £60,000 |
Work it out: pension calculator. Source: Pension annual allowance (GOV.UK) and Pension tax relief (GOV.UK).
Company car tax: zero-emission cars
If you get a company car, the benefit in kind is taxed as income. For a fully electric car, the taxable value is a small percentage of the car's list price.
| Tax year | Zero-emission BIK rate |
|---|---|
| 2026/27 | 4% |
| 2027/28 | 5% |
Work it out: salary sacrifice car calculator. Source: Tax on company cars (GOV.UK).
Related pages
Work out your own pay with the take home pay calculator, look up a term in the glossary, or read how we calculate our figures.