UK Income Tax Bands and Personal Allowance Explained
For the 2026 to 2027 tax year (6 April 2026 to 5 April 2027), the first £12,570 of taxable income is usually tax-free through the Personal Allowance. In England, Wales and Northern Ireland, Income Tax then applies at 20% on earnings up to £50,270, 40% up to £125,140, and 45% on anything above that. Scotland uses different bands, so check Scottish rules if you live there.
Savings interest may be covered separately by the Personal Savings Allowance and other savings rules. More guides are in the tax hub.
The Personal Allowance
The standard Personal Allowance is £12,570 in 2026 to 2027. Income within this amount is not charged to Income Tax, provided you qualify for the full allowance.
If you qualify for Blind Person’s Allowance, you can add that to your Personal Allowance.
You do not get a Personal Allowance on taxable income over £125,140.
Rates and bands
The table below shows the main Income Tax bands for England, Wales and Northern Ireland when you receive the standard Personal Allowance. Percentages apply to the slice of income in each band, not your whole salary.
| 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% |
Your employer or pension provider uses your tax code to apply your Personal Allowance.
If you are married or in a civil partnership, Marriage Allowance can shift part of one partner’s unused Personal Allowance to the other when conditions are met.
Earning over £100,000
High earners face a taper on the Personal Allowance. Once your adjusted net income is above £100,000, the allowance goes down by £1 for every £2 over that figure.
The allowance disappears completely when income reaches £125,140 or more.
Scotland
Income Tax bands are different if you live in Scotland. GOV.UK does not use the English, Welsh and Northern Irish table for Scottish taxpayers.
Other allowances and reliefs
Beyond the Personal Allowance, GOV.UK lists several tax-free allowances for specific types of income. These include interest covered by savings allowances, dividend allowances, a £1,000 trading allowance and a £1,000 property allowance, unless you claim Rent a Room relief instead.
Reliefs can reduce the tax you owe on remaining income. Examples on GOV.UK include charity donations, allowable job expenses, private pension contributions and maintenance payments.
Marriage Allowance may help if you earn less than the standard allowance and your partner is a basic-rate taxpayer: transferring £1,260 of allowance may cut their tax by up to £252 in the tax year. See the dedicated Marriage Allowance page for eligibility.
Your HMRC online account shows the figures that apply to you.
Frequently asked questions
What is the Personal Allowance for 2026 to 2027?
The standard Personal Allowance is £12,570. You can also get Blind Person's Allowance on top. You lose the allowance once taxable income is over £125,140.
Why does my allowance shrink if I earn over £100,000?
For every £2 of adjusted net income above £100,000, your Personal Allowance goes down by £1. It reaches zero when income is £125,140 or more.
Do these bands apply in Scotland?
No. These rates and bands apply in England, Wales and Northern Ireland. Scotland sets its own Income Tax bands.
What other income can be tax-free?
GOV.UK lists allowances for savings interest, dividend income, a £1,000 trading allowance and a £1,000 property allowance, unless you use Rent a Room relief.
Can reliefs reduce the tax I pay?
Yes. Reliefs such as charity donations, certain job expenses, private pension contributions and maintenance payments can reduce your bill. Marriage Allowance may help if your income is below the standard Personal Allowance.
Sources
Disclaimer: This article is general information and not personal financial, tax or legal advice. Check your own situation with HMRC, GOV.UK or a regulated adviser.