The UK tax system can seem complex, but understanding income tax rates is essential for financial planning. Here's everything you need to know about tax rates for 2026/27.
Personal Allowance
The personal allowance for 2026/27 is £12,570. This is the amount of income you can earn tax-free. If you earn above £100,000, your personal allowance reduces by £1 for every £2 above the threshold.
- Personal allowance: £12,570
- Income above £100,000 reduces allowance
- Blind person's allowance: £3,250
Tax Bands and Rates
Income tax is charged at different rates depending on which band your income falls into. Scottish taxpayers have different rates for Scottish income.
- Basic rate (20%): £12,571 - £50,270
- Higher rate (40%): £50,271 - £125,140
- Additional rate (45%): over £125,140
How Tax Is Collected
Most employees have tax collected through PAYE (Pay As You Earn). Your employer deducts tax before you receive your pay. If you're self-employed, you pay tax through self-assessment.
- income tax
- tax rates
- tax band
- personal allowance
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