United Kingdom income tax brackets — 2026/27 calculator
Three rates plus the Personal Allowance, which tapers off above £100,000. Scotland uses its own bands; this calculator covers England, Wales and Northern Ireland.
Tax year: 2026/27 · Filing status: Standard
Calculate income tax for United Kingdom (England, Wales, NI)
Type your gross annual income. The calculator runs it through the progressive brackets and returns tax owed plus effective rate.
Bracket schedule for 2026/27
| Bracket | Range | Rate |
|---|---|---|
| Personal Allowance | £0 — £12,570 | 0% |
| Basic rate | £12,570 — £50,270 | 20% |
| Higher rate | £50,270 — £125,140 | 40% |
| Additional rate | £125,140 — and above | 45% |
The UK income-tax architecture in 2026/27
The UK uses a three-rate progressive structure on top of a tax-free Personal Allowance:
- Personal Allowance: £12,570 — the first slab of income, taxed at 0%. Unchanged since April 2021 and frozen through April 2028 under the current fiscal plan.
- Basic rate: 20% — applies to taxable income between £12,570 and £50,270.
- Higher rate: 40% — applies to taxable income between £50,270 and £125,140.
- Additional rate: 45% — applies to taxable income above £125,140 (lowered from £150,000 in April 2023).
Worked example: a UK employee with £60,000 taxable income in 2026/27:
- £0–£12,570 at 0% = £0
- £12,570–£50,270 at 20% = £7,540
- £50,270–£60,000 at 40% = £3,892
- Total income tax: £11,432
- Marginal rate: 40%, effective rate: 19.05%
The Personal Allowance taper above £100,000
One of the messiest parts of UK tax: the Personal Allowance tapers off above £100,000 of income. For every £2 earned above £100,000, £1 of Personal Allowance is removed, until it reaches £0 at £125,140. This creates an effective marginal tax rate of 60% on income between £100,000 and £125,140 — the highest marginal rate in the UK system, higher than the formal 45% additional rate that kicks in above £125,140.
For tax planning, the income range £100,000–£125,140 is often called the "60% trap" and is a major reason high earners maximise pension contributions to bring their effective taxable income below £100,000.
What's NOT in this calculator
UK income tax is only part of the tax burden. You also pay:
- National Insurance: Class 1 NI is 8% on earnings between £12,570 and £50,270, then 2% above. Employer pays separately at 15% (as of April 2025).
- Scottish income tax: Scotland uses different bands and rates — 19%/20%/21%/42%/45%/48% across six brackets. This calculator covers England, Wales and NI only.
- Council tax: Local property-based tax, separate from income.
- VAT (20% on most goods): Already covered in our UK VAT calculator.
The frozen-allowance reality
The UK Personal Allowance has been frozen at £12,570 since April 2021 and is set to remain there until April 2028. Combined with inflation, this means a growing share of UK workers are pulled into the basic rate band each year — a phenomenon known as "fiscal drag." From 2021 to 2026, cumulative UK inflation of roughly 25% has effectively dropped the real value of the Personal Allowance to about £10,050 in 2021 pounds — a quiet tax increase no minister had to announce.
The 40% higher-rate threshold (£50,270) is similarly frozen. The number of higher-rate taxpayers in the UK has roughly doubled since 2010 as a result.
Frequently asked questions
What are the UK income tax brackets for 2026/27?
Four bands: 0% Personal Allowance up to £12,570, 20% basic rate to £50,270, 40% higher rate to £125,140, and 45% additional rate above £125,140. Scotland uses different bands.
What is the 60% tax trap?
The effective marginal rate on income between £100,000 and £125,140. The Personal Allowance tapers off by £1 for every £2 earned above £100,000, which combined with the 40% headline rate produces a 60% effective marginal rate. Above £125,140 the rate drops back to the formal 45%.
Does this calculator cover Scotland?
No — Scottish income tax has its own bands (19%, 20%, 21%, 42%, 45%, 48%). This calculator covers England, Wales and Northern Ireland. Scottish rates were set by Holyrood under the Scotland Act 2016.
Are the UK tax brackets indexed for inflation?
Not currently. The Personal Allowance and higher-rate threshold are frozen until April 2028 under the current fiscal plan, regardless of inflation. This is the policy known as "fiscal drag" — it raises real tax revenue without explicit rate increases.
Does this include National Insurance?
No — income tax only. UK National Insurance (Class 1) is 8% between £12,570 and £50,270 and 2% above, paid by employees in addition to income tax. The combined marginal rate for a basic-rate worker is 28% (20% income tax + 8% NI), not just 20%.