What are the UK income tax bands for 2026/27?

Full answer

Income tax bands define the rate of tax you pay at different levels of income. The UK does not have a single unified rate — Scotland sets its own bands, and all nations use different rates for dividends and savings. **England, Wales and Northern Ireland — 2026/27:** | Band | Income range | Rate | |---|---|---| | Personal Allowance | Up to £12,570 | **0%** | | Basic rate | £12,571 – £50,270 | **20%** | | Higher rate | £50,271 – £125,140 | **40%** | | Additional rate | Above £125,140 | **45%** | **Personal Allowance taper (£100k–£125,140):** For every £2 of adjusted net income above £100,000, the PA reduces by £1 — creating an effective **60% marginal rate** in this band. At £125,140, the PA is fully withdrawn. **Scottish income tax (6 bands, 2026/27):** | Band | Income range | Rate | |---|---|---| | Personal Allowance | Up to £12,570 | 0% | | Starter | £12,571 – £15,397 | **19%** | | Basic | £15,398 – £27,491 | **20%** | | Intermediate | £27,492 – £43,662 | **21%** | | Higher | £43,663 – £75,000 | **42%** | | Advanced | £75,001 – £125,140 | **45%** | | Top | Above £125,140 | **48%** | **Welsh income tax:** Welsh residents have a **C** prefix on their tax code (e.g. C1257L). Rates are set to match England — Wales has 10p devolved rate-setting power but has not varied from the UK rate. **Fiscal drag:** Bands have been frozen since 2021/22 — meaning as wages rise with inflation, more taxpayers are dragged into higher bands without official rate increases. The freeze is scheduled to end in 2028. **Dividends and savings at separate rates:** Dividend income is taxed at 10.75%/35.75%/39.35% — and the £500 dividend allowance sits on top of the PA. Savings income has its own PSA (£1,000/£500/£0) and starting rate band (£5,000 at 0% for non-employment income).

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