Income Tax
UK Income Tax by Salary & Year
See exactly how much UK Income Tax you pay on a given salary, with a band-by-band breakdown for England, Wales, Northern Ireland and Scotland. Pick a salary below, or jump to a specific tax year for historical rates. Prefer to enter your own figure? Use the Income Tax calculator.
Income tax on common salaries (2026/27)
Income Tax by tax year
Related
UK Income Tax — Frequently Asked Questions
What are the UK income tax bands for 2026/27?
For England, Wales and Northern Ireland in 2026/27: Personal Allowance £12,570 (0%); Basic Rate 20% on income £12,571–£50,270; Higher Rate 40% on income £50,271–£125,140; Additional Rate 45% on income above £125,140. Scottish taxpayers pay different rates across six bands: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%) and Top (48%). The Scottish Higher Rate band begins at £43,663 rather than £50,270.
What is the Personal Allowance and who does not get it?
The Personal Allowance is £12,570 for 2026/27 — the amount of income you can earn before paying income tax. It is reduced by £1 for every £2 of income above £100,000, reaching zero at £125,140. Anyone earning above £125,140 gets no Personal Allowance and effectively pays income tax from the first pound of earnings. The Marriage Allowance lets the lower-earning partner transfer £1,260 of their unused Personal Allowance, saving the higher earner up to £252 per year.
How does income tax work in Scotland?
Scotland has its own income tax rates set by the Scottish Parliament. For 2026/27 Scottish rates are: Starter 19% (£12,571–£15,397), Basic 20% (£15,398–£27,491), Intermediate 21% (£27,492–£43,662), Higher 42% (£43,663–£75,000), Advanced 45% (£75,001–£125,140), Top 48% (above £125,140). The Personal Allowance of £12,570 is the same as rUK. National Insurance is not devolved and is the same across the UK.
Show 7 more questionsShow fewer questions
What does my tax code mean?
Your tax code tells your employer how much tax-free income you're entitled to. The most common code is 1257L, representing the standard £12,570 Personal Allowance. Letter meanings: L = standard allowance; M/N = Marriage Allowance (received/transferred); K = deductions exceed allowance; BR = all income at basic rate (20%); D0 = all at higher rate (40%); D1 = all at 45%; W1/M1 = emergency non-cumulative code. Check and update your tax code via the HMRC Personal Tax Account at gov.uk.
How is income tax collected from employees?
Most employees pay income tax through PAYE (Pay As You Earn). Your employer calculates the tax due based on your tax code and cumulative earnings, deducts it from gross pay and sends it to HMRC monthly. PAYE is designed to collect exactly the right amount over the year so most employees do not need to file a Self Assessment return. Errors (wrong tax code) result in under or overpayment, which HMRC reconciles via a P800 notice after the tax year ends.
What is the 60% effective income tax trap?
When income rises from £100,000 to £125,140, the Personal Allowance is withdrawn at £1 per £2 of additional income. This withdrawal effectively adds an extra 20% to the 40% Higher Rate tax, creating a 60% marginal rate. A salary rise from £100,000 to £125,140 yields far less take-home than expected. Salary sacrifice pension contributions between £100,000 and £125,140 are the standard remedy — they reduce adjusted income, restore the allowance and save up to £7,542 per year.
Do I need to file a Self Assessment tax return?
Most PAYE employees do not need to file Self Assessment. You must file if: self-employed (sole trader or partner); untaxed income above £1,000; earnings above £100,000; High Income Child Benefit Charge (HICBC) applies (earnings above £60,000); capital gains above the £3,000 Annual Exempt Amount; company director with untaxed income; or HMRC has issued a notice to file. The online Self Assessment deadline is 31 January following the tax year end.
How does income tax differ from National Insurance?
Income tax and National Insurance are both collected via PAYE but are entirely separate charges. Income tax funds general government expenditure; NI funds the State Pension and contributory benefits. In 2026/27: employees pay 8% NI on earnings £12,570–£50,270 and 2% above that; employers pay 15% on employee earnings above £5,000 (the Secondary Threshold). Your NI record determines State Pension entitlement, so it is important for your retirement even when the payments feel like a deduction.
Can I reduce my income tax bill legally?
Yes. The most effective legal methods: (1) Salary sacrifice pension contributions — reduce gross pay before tax and NI; (2) Personal pension contributions — basic-rate relief added automatically (higher-rate via Self Assessment); (3) Gift Aid donations — basic-rate relief added to the charity; (4) ISA contributions — interest, dividends and gains are permanently tax-free; (5) Marriage Allowance if one partner has unused Personal Allowance; (6) Professional subscription or uniform allowances via HMRC claim. Enterprise schemes (EIS/SEIS) offer 30–50% income tax relief for qualifying investments.
What is the difference between gross pay and taxable income?
Gross pay is your total earnings before deductions. Taxable income is lower — gross pay minus salary sacrifice deductions (pension, childcare, cycle-to-work) minus the Personal Allowance. Income tax is calculated on taxable income, not gross pay. Example: £40,000 gross with £3,000 salary-sacrifice pension → taxable income = £37,000 − £12,570 = £24,430; tax = 20% × £24,430 = £4,886. Without the sacrifice: tax = 20% × £27,430 = £5,486 — a £600 saving, plus the NI saving on the sacrificed amount.