Income Tax is the tax you pay on most income above your tax-free Personal Allowance. For the 2026/27 tax year the Personal Allowance is £12,570, and income above it is taxed at 20% (basic rate), 40% (higher rate) and 45% (additional rate) in England, Wales and Northern Ireland. The calculator above applies your allowance and each band in turn, so you see your tax and take-home instantly.
Scotland sets its own bands and rates, which the calculator handles separately. Most people pay Income Tax automatically through PAYE; if you are self-employed or have other income, you may settle it through Self Assessment.
How is income tax calculated in 2026/27?
Your Personal Allowance comes off first, then each slice of income above it is taxed at the rate for its band. The thresholds are frozen for 2026/27, as confirmed in HMRC's Income Tax rates and bands.
| Band | Taxable income (2026/27) | 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% |
These bands apply to England, Wales and Northern Ireland. Scotland has six bands ranging from 19% to 48%.
What is the Personal Allowance for 2026/27?
The Personal Allowance is £12,570, the amount you can earn before paying any Income Tax, and it is frozen until at least April 2028. If you earn more than £100,000 it is reduced by £1 for every £2 above that, and disappears entirely once your income reaches £125,140, creating an effective 60% rate in between.
How much income tax will I pay on £30,000?
On a £30,000 salary in 2026/27 with the standard tax code, the first £12,570 is covered by your Personal Allowance and the remaining £17,430 is taxed at the 20% basic rate. That is £3,486 of Income Tax for the year, before National Insurance. Your National Insurance and take-home pay are worked out separately.
How can I reduce my income tax?
Legitimate ways to lower an Income Tax bill include making pension contributions, using salary sacrifice for a pension or an electric car, claiming Gift Aid, and checking your tax code is correct so you are not overpaying. Company directors often combine a modest salary with dividends. If your affairs are more involved, our tax advisory service can review your position.
Related guides and calculators
- UK income tax bands for 2026/27, explained
- UK salary and tax rate guide
- National Insurance calculator
- Take-home pay calculator
Frequently asked questions
What is the income tax Personal Allowance for 2026/27?
The Personal Allowance for 2026/27 is £12,570. You pay no Income Tax on the first £12,570 you earn. It is frozen until at least April 2028 and is reduced by £1 for every £2 you earn above £100,000, disappearing completely at £125,140.
What are the income tax rates for 2026/27?
In England, Wales and Northern Ireland the rates for 2026/27 are 20% basic rate (£12,571 to £50,270), 40% higher rate (£50,271 to £125,140) and 45% additional rate (over £125,140). Scotland sets its own bands ranging from 19% to 48%.
When do I start paying 40% tax?
In England, Wales and Northern Ireland you start paying the 40% higher rate on taxable income above £50,270 for 2026/27. Below that, income above your Personal Allowance is taxed at the 20% basic rate.
How does the £100,000 Personal Allowance taper work?
For every £2 you earn above £100,000, you lose £1 of your Personal Allowance. It is gone entirely at £125,140. This creates an effective 60% marginal tax rate on income between £100,000 and £125,140.
Do I pay income tax and National Insurance separately?
Yes. Income Tax and National Insurance are separate systems with different thresholds. On most salaries you pay both, but only Income Tax applies to things like dividends and pension income.