For 2026/27 you pay no income tax on the first £12,570 of your income (the Personal Allowance). In England, Wales and Northern Ireland the next £37,700 is taxed at 20%, income above that is taxed at 40%, and anything over £125,140 is taxed at 45%. Only the slice of pay that falls inside each band is taxed at that band’s rate.
How the Personal Allowance works
The Personal Allowance is the amount you can earn in a tax year (6 April 2026 to 5 April 2027) before income tax starts. It is £12,570 for most people. If your adjusted net income is over £100,000 it shrinks by £1 for every £2 above that figure, and it has disappeared completely by £125,140.
That shrinkage is why the effective tax rate between £100,000 and £125,140 is higher than the headline 40%. It is worth knowing about if a bonus or a pay rise is about to push you over £100,000. Pension contributions can reduce adjusted net income, which is covered in Net pay, salary sacrifice or relief at source: how pension contributions affect your pay.
Income tax bands in England, Wales and Northern Ireland
Tax is worked out on your taxable income, which is your income minus the Personal Allowance.
| Band | Taxable income | Rate |
|---|---|---|
| Basic rate | Up to £37,700 | 20% |
| Higher rate | £37,701 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
With a full allowance, the higher rate starts when your total income passes £50,270 (£12,570 plus £37,700).
Income tax bands in Scotland
Scotland sets its own rates and bands for earned income. These apply to taxable income after the allowance:
| Band | Taxable income | Rate |
|---|---|---|
| Starter | £0 to £3,967 | 19% |
| Basic | Up to £16,956 | 20% |
| Intermediate | Up to £31,092 | 21% |
| Higher | Up to £62,430 | 42% |
| Advanced | Up to £112,570 | 45% |
| Top | Above £112,570 | 48% |
For someone on £50,000, Scottish income tax is higher than the rest of the UK. Our calculator gives £8,982 in Scotland against £7,486 elsewhere. The Personal Allowance itself is the same across the UK.
Worked example: a £60,000 salary
Take a salary of £60,000 in England, with no pension and no student loan.
- Taxable income: £60,000 − £12,570 = £47,430.
- Basic rate: £37,700 × 20% = £7,540.
- Higher rate: the remaining £9,730 × 40% = £3,892.
- Total income tax: £11,432.
That is about 19% of the gross salary, well below the 40% top rate, because most of the pay sits in lower bands. National Insurance is charged separately; see National Insurance for employees: what you pay and why. Together tax and NI on £60,000 come to about 24% of pay in our calculator, leaving roughly £45,357 a year.
What the tax code means
Your employer normally collects income tax through PAYE using a tax code. The common code for 2026/27 is based on the £12,570 allowance, but codes change if you have taxable benefits, owe tax from a previous year, or have more than one job or pension. If a code looks wrong, check it on your payslip or in your HMRC online account, and ask HMRC if you are unsure. Our estimates assume a standard code.
Other income, such as savings interest above your allowances, dividends, rental profits or self-employed earnings, can be taxed differently and may need a Self Assessment return. Check GOV.UK for the rules that apply to you.
Note: This is general information, not tax advice. Rates and thresholds can change, so check GOV.UK or speak to a qualified adviser for your own circumstances.
Try the calculator
Enter your salary, region and any pension or student loan into the UK take-home pay to see income tax, National Insurance and take-home pay for 2026/27. For a step-by-step version, see How to work out your take-home pay from a UK salary. The figures are estimates.
Open the free UK take-home pay
Frequently asked questions
Do I pay 40% tax on all my income once I earn over £50,270?
No. Only the part of your income above the higher-rate threshold is taxed at 40%. Everything below it is still taxed at 0% or 20%.
Is the Personal Allowance the same in Scotland?
Yes, the £12,570 allowance applies across the UK. What differs in Scotland is the set of bands and rates applied to income above it.
Why is my tax more than the calculator shows?
You may have a different tax code, taxable benefits in kind, extra income or a previous underpayment. The calculator uses a standard code and salary only, so treat its result as an estimate.
When does the tax year start?
The UK tax year runs from 6 April to 5 April the following year, so 2026/27 runs from 6 April 2026 to 5 April 2027.