# How Income Tax bands work in 2026/27 | ComputeNow URL: https://computenow.co.uk/guides/income-tax-bands-2026-27/ > Income Tax bands for 2026/27: the £12,570 Personal Allowance, 20%, 40% and 45% rates, Scottish bands, and worked examples at common salaries. This calculator shows a worked example below. To use your own figures, add them to the URL as query parameters (listed in https://computenow.co.uk/llms.txt), for example https://computenow.co.uk/guides/income-tax-bands-2026-27/?=. [Pay & tax guide](https://computenow.co.uk/guides/#pay) # How Income Tax bands work in 2026/27 Income Tax is charged in bands: each slice of your income is taxed at its own rate, not your whole salary at one rate. Published 18 October 2026England, Wales and Northern Ireland, with Scotland By the ComputeNow team, checked against GOV.UK and HMRC[Sources (3)](#sources)[How we calculate](https://computenow.co.uk/methodology/) ## 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 calculator](https://computenow.co.uk/income-tax-calculator/) ## The 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% | The rate on each slice of income. *Between £100,000 and £125,140 the 40% rate and the lost Personal Allowance add up to an effective 60%. ## 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](https://computenow.co.uk/guides/60-percent-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. ## Related [Take-home pay calculator Your pay after Income Tax and NI](https://computenow.co.uk/take-home-pay/)[Income Tax calculator Your tax band by band](https://computenow.co.uk/income-tax-calculator/)[£50,000 after tax £3,293.30 a month take-home](https://computenow.co.uk/take-home-pay/50000/) ## Guides and help ### Our guides [The 60% tax trap Why income over £100,000 is taxed at 60%, and what to do](https://computenow.co.uk/guides/60-percent-tax-trap/)[National Insurance in 2026/27 Rates, thresholds, category letters and salary sacrifice](https://computenow.co.uk/guides/national-insurance-2026-27/)[Student loan repayments in 2026/27 Thresholds for every plan and monthly examples](https://computenow.co.uk/guides/student-loan-repayments-2026-27/) ### Official services and free advice [Check your Income Tax for this year GOV.UK: your tax code and pay so far](https://www.gov.uk/check-income-tax-current-year)[Tax codes explained GOV.UK: what yours means, and fixing a wrong one](https://www.gov.uk/tax-codes)[Marriage Allowance GOV.UK: share part of your Personal Allowance](https://www.gov.uk/marriage-allowance) ## Article sources Each source was last checked on 18 October 2026. - [GOV.UK: Rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027) - [GOV.UK: Income Tax rates and Personal Allowances](https://www.gov.uk/income-tax-rates) - [GOV.UK: Scottish Income Tax](https://www.gov.uk/scottish-income-tax) These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper. This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.