How your UK salary is taxed in 2026/27
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. Most people get a tax free personal allowance of £12,570. Income above that is taxed in bands, and National Insurance is charged separately on your earnings. If you have a workplace pension or a student loan, those come out of your pay too.
Income tax bands: England, Wales and Northern Ireland
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scottish income tax bands 2026/27
| Band | Income (with full allowance) | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
National Insurance and the £100,000 taper
Employees pay Class 1 National Insurance of 8 percent on earnings between £12,570 and £50,270 a year, and 2 percent above that. The rates are the same across the UK. Above £100,000 of income, your personal allowance shrinks by £1 for every £2 you earn, until it disappears at £125,140. That creates an effective 60 percent tax rate in that band, which is why many people in it pay extra into their pension.
Student loan repayments 2026/27
| Plan | Annual threshold | Rate on income above it |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Compare what the same salary is worth abroad with our US, Germany and Canada calculators.
Sources: GOV.UK income tax rates and allowances; GOV.UK rates and thresholds for employers 2026 to 2027; Scottish Government income tax rates and bands 2026 to 2027.
