Income Tax rates 2026/27
The bands and allowances for England, Wales and Northern Ireland, as published by HMRC.
| Band | Rate | Taxable income |
|---|---|---|
| Personal allowance | 0% | Up to £12,570 |
| Basic rate | 20% | £12,571 – £50,270 |
| Higher rate | 40% | £50,271 – £125,140 |
| Additional rate | 45% | Over £125,140 |
The personal allowance
Everyone starts with £12,570 of tax-free income. It has been frozen at that level since April 2021, which means that as wages rise a larger share of income falls into taxable bands — a real-terms increase without any rate changing.
The £100,000 taper
Above £100,000 the personal allowance is withdrawn at £1 for every £2 earned, disappearing entirely at £125,140. Because you lose allowance as well as paying higher-rate tax, each extra pound in that band is effectively taxed at 60% — 62% once National Insurance is counted. It is the highest marginal rate in the UK system, higher than the additional rate itself.
Tax on £12,570 and below
If you earn less than the personal allowance you pay no Income Tax at all. National Insurance uses the same £12,570 starting point, so below that figure your gross and net pay are the same.
Rates for the previous year
The 2025/26 rates were identical for England, Wales and Northern Ireland — same allowance, same thresholds, same rates. Compare the two years for your salary.