Answers · UK 2025/26
How much can I earn before paying tax in 2026?
You can earn £12,570 in 2026/27 before paying any Income Tax — this is the Personal Allowance. National Insurance also starts at £12,570 a year. Savings interest and dividends have separate tax-free allowances on top of this.
Full answer
For the 2026/27 tax year the standard Personal Allowance is £12,570, meaning you pay no Income Tax on the first £12,570 of income. Above that, the basic rate of 20% applies up to £50,270, then 40% up to £125,140, and 45% beyond. National Insurance for employees also begins at £12,570 a year (the Primary Threshold), charged at 8%. The Personal Allowance is reduced by £1 for every £2 you earn over £100,000, disappearing entirely at £125,140. Worked example: someone earning exactly £12,570 pays no Income Tax and no employee National Insurance, taking home their full salary. Someone earning £15,000 pays 20% on £2,430 = £486 tax. On top of the Personal Allowance, basic-rate taxpayers get a £1,000 Personal Savings Allowance for interest, a £500 Dividend Allowance, and the £20,000 ISA allowance shelters investment returns entirely. In Scotland the Personal Allowance is the same £12,570, but the rates above it differ (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%). Use the Income Tax calculator to see exactly when your earnings start being taxed.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.