Answers · UK 2025/26
What is the 40 percent tax threshold in 2026?
The 40% higher-rate Income Tax threshold is £50,270 for 2026/27 in England, Wales and Northern Ireland. You start paying 40% on each pound of taxable income above this level, after using your £12,570 Personal Allowance. In Scotland the 42% higher rate begins lower, at £43,662.
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For 2026/27 the higher-rate threshold in England, Wales and Northern Ireland is £50,270. Up to the £12,570 Personal Allowance you pay no tax; from £12,571 to £50,270 you pay the 20% basic rate; above £50,270 you pay 40% until £125,140, where the 45% additional rate begins. The threshold has been frozen for several years, dragging more earners into higher-rate tax through "fiscal drag" as wages rise. Worked example: someone earning £55,000 pays 40% only on the £4,730 above £50,270 = £1,892 of higher-rate tax, plus 20% on the basic-rate band. So crossing the threshold does not tax your whole income at 40% — only the slice above it. Scotland is different: the Scottish higher rate of 42% starts at £43,662, and there are also intermediate (21%), advanced (45%) and top (48%) bands, so Scottish taxpayers reach higher rates sooner. Pension contributions and Gift Aid extend your basic-rate band and can keep income below the 40% threshold. Higher-rate taxpayers also see their Personal Savings Allowance cut from £1,000 to £500. Use the Income Tax calculator to see exactly how much of your pay is taxed at 40%.
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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.