Answers · UK 2025/26

How much can I earn before higher rate tax in 2026?

In 2026/27 you can earn up to £50,270 before paying 40% higher-rate tax in England, Wales and Northern Ireland. That is the £12,570 Personal Allowance plus the £37,700 basic-rate band. Scotland’s higher rate starts lower, at around £43,663.

Last updated: 1 June 2026Last reviewed: 1 June 2026How we verify

Full answer

For 2026/27 in England, Wales and Northern Ireland, the higher-rate (40%) threshold is £50,270. This is made up of the £12,570 Personal Allowance, which is taxed at 0%, plus the basic-rate band of £37,700 taxed at 20%. Income above £50,270 is taxed at 40% until you reach £125,140, where the 45% additional rate begins. Worked example: if you earn £55,000, the first £12,570 is tax-free, the next £37,700 is taxed at 20% (£7,540), and the final £4,730 above £50,270 is taxed at 40% (£1,892), giving £9,432 Income Tax. Scotland is different and more complex because Income Tax rates there are devolved: the Scottish higher rate of 42% starts at around £43,663, so Scottish taxpayers reach higher-rate territory at a noticeably lower salary than the rest of the UK, and there is also an intermediate 21% band and an advanced 45% band above £75,000. One important wrinkle UK-wide: the Personal Allowance starts to be withdrawn above £100,000, creating an effective 60% marginal rate up to £125,140. You can raise the point at which 40% tax bites by making pension contributions, because they extend your basic-rate band. Use the Income Tax and Take-Home Pay calculators to see exactly where your higher-rate threshold falls.