Answers · UK 2025/26

When do I start paying higher-rate tax in the UK?

In England, Wales and Northern Ireland you start paying 40% higher-rate Income Tax once your taxable income exceeds £50,270 for 2026/27. In Scotland the higher rate is 42% and begins at a lower threshold, with intermediate and advanced bands in between.

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 of 40% applies to income above £50,270. The structure is: £0–£12,570 tax-free (Personal Allowance), £12,571–£50,270 taxed at 20% basic rate, £50,271–£125,140 taxed at 40% higher rate, and above £125,140 taxed at 45% additional rate. The £50,270 higher-rate threshold has been frozen for several years, dragging more people 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 at the higher rate), not on their whole income — a common misconception is that crossing the threshold taxes everything at 40%, but only the slice above is affected. National Insurance also changes here: the employee rate drops from 8% to 2% on earnings above £50,270. Scotland is different and uses six bands: starter (19%), basic (20%), intermediate (21%), higher (42%), advanced (45%) and top (48%). Scottish higher-rate tax starts at a lower income point than the rUK threshold, so Scottish taxpayers reach 42% sooner. Reaching higher-rate status also affects other things: your Personal Savings Allowance halves from £1,000 to £500, and you can no longer use Marriage Allowance. Pension contributions and Gift Aid can pull your adjusted net income back below the threshold. Use the Income Tax calculator to see exactly where your bands fall.