Key points
- The first £12,570 is tax-free for most people: your Personal Allowance.
- 20% up to £50,270, 40% up to £125,140, 45% above. Only the slice in each band pays that band's rate.
- On £35,000 you pay £4,486.00 a year, 12.8% of your salary, not 20%.
- A pay rise never leaves you worse off on Income Tax alone: only the extra slice pays the higher rate.
Work out your own
See your own tax band by band, with savings, dividends and Scottish rates.
Open the Income Tax calculatorThe bands for 2026/27
These are the rates on earnings and pensions for people in England, Wales and Northern Ireland.
| Band | 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% |
A worked example
On a £35,000 salary the first £12,570 is tax-free. The next £22,430 falls in the basic-rate band and is taxed at 20%, so you pay £4,486 a year.
Move up to £50,000 and the extra £15,000 is still in the basic-rate band, so it is taxed at 20% too: £7,486 in all. Only the part above £50,270 is taxed at 40%.
What you pay at common salaries
| Salary | Income Tax | Share of salary | Take-home |
|---|---|---|---|
| £20,000 | £1,486.00 | 7.4% | £17,919.60 |
| £35,000 | £4,486.00 | 12.8% | £28,719.60 |
| £50,000 | £7,486.00 | 15.0% | £39,519.60 |
| £60,000 | £11,432.00 | 19.1% | £45,357.40 |
| £100,000 | £27,432.00 | 27.4% | £68,557.40 |
| £150,000 | £53,703.00 | 35.8% | £91,286.40 |
Take-home is after Income Tax and National Insurance, with the standard tax code and no pension or student loan.
Your Personal Allowance can shrink
If your adjusted net income is over £100,000, your Personal Allowance goes down by £1 for every £2 above that limit. At £125,140 it has gone completely.
That means income between £100,000 and £125,140 is effectively taxed at 60%. Read the 60% tax trap for what it costs and how pension contributions win the allowance back.
Scotland has its own bands
If you live in Scotland, your earnings are taxed at Scottish rates. Savings interest and dividends use the UK rates wherever you live.
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Bottom line
Your tax rate is not your band. On £60,000 you are a higher-rate taxpayer but pay 19.1% of your salary in Income Tax, because most of it falls in the lower bands.
Tips
- Check your tax code on your payslip. 1257L means the standard Personal Allowance; anything else changes how much tax-free pay you get.
- Paying into a pension, or giving to charity with Gift Aid, can keep part of your income out of the higher-rate band.
- If one partner earns under the Personal Allowance, Marriage Allowance can move some of it to the other and cut your tax bill.
This guide explains the rules; it is not personal financial advice.