Key 2026/27 UK Tax Figures & Thresholds
- Personal Allowance: £12,570 tax-free allowance (tapers by £1 per £2 of income above £100,000; reaches £0 at £125,140). Source: GOV.UK
- Rest of UK Income Tax: Basic 20% (£12,571–£50,270), Higher 40% (£50,271–£125,140), Additional 45% (above £125,140).
- Scottish Income Tax: 6 bands from 19% Starter up to 48% Top Rate on earnings over £125,140. Source: Scottish Gov / HMRC
- Employee National Insurance (Class 1): Primary threshold £12,570/yr; 8% rate up to £50,270; 2% rate above £50,270. (UK-wide system). Source: HMRC
- Student Loan Repayment Thresholds: Plan 1 £26,900 (9%), Plan 2 £29,385 (9%), Plan 4 £33,795 (9%), Plan 5 £25,000 (9%), Postgraduate £21,000 (6%). Source: GOV.UK
- Stamp Duty (SDLT — England & NI): Nil rate up to £125,000 (or £300,000 for first-time buyers on homes up to £500,000). 5% surcharge for additional properties. Source: GOV.UK
- VAT Rates & Thresholds: Standard rate 20%, reduced rate 5%, zero rate 0%. Registration threshold £90,000 rolling 12 months. Source: GOV.UK
Data Source & Methodology: Figures are based on the median gross annual earnings for full-time employees from the ONS Annual Survey of Hours and Earnings (ASHE) 2024 (provisional). This data is updated annually. Contains public sector information licensed under the Open Government Licence v3.0.
## How these figures are calculated
These benchmarks represent the **median** rather than the mean average. The median is the exact middle point of all salaries — half of workers earn more, and half earn less. Statisticians use the median because it isn’t skewed by a small number of extremely high earners (which pulls the mean average up artificially).
The data covers gross annual earnings for full-time employee jobs in the UK.
## Frequently Asked Questions
What salary is the top 10% in the UK?
To be in the top 10% of earners in the UK, you typically need a gross annual salary of around £68,000 to £70,000. This threshold can fluctuate slightly each year based on inflation and wage growth across the wider economy.
What salary is top 1% in the UK?
The threshold to enter the top 1% of earners in the UK is approximately £180,000 to £200,000 per year. Earnings at this level are heavily concentrated in London and the South East, particularly in the financial, legal, and medical sectors.
How many people in the UK earn over 50k?
According to recent HMRC data, over 5 million people in the UK earn more than £50,270, which is the threshold for the 40% higher rate of Income Tax. This represents roughly 15-20% of the total taxpaying population.
How many people in the UK make over 100k?
Roughly 1.2 to 1.5 million people in the UK earn a gross salary of over £100,000. This is approximately the top 3-4% of all taxpayers, making a six-figure salary a relatively rare achievement nationwide.
What is the average UK salary for a 40 year old?
Earnings tend to peak in the 40-49 age bracket. The median full-time salary for workers in their 40s is typically higher than the national average, often sitting between £40,000 and £42,000 per year, depending on the specific region and occupation.
Is 40k a good salary for a 25 year old in the UK?
Yes, £40,000 is considered an excellent salary for a 25-year-old. It sits comfortably above both the national median and the specific median for workers in their 20s, placing you in a strong financial position early in your career.
What UK salary is middle class?
There is no strict definition of a “middle class” salary in the UK. However, household incomes ranging from £40,000 to £70,000 are often colloquially considered middle-income, providing a comfortable lifestyle outside of central London but without significant luxury.
What is considered a high earner in the UK?
From a tax perspective, the government considers anyone earning over £50,270 (the higher rate threshold) to be an above-average earner. However, in terms of purchasing power, a salary over £70,000 (roughly the top 10%) is generally considered a high income.
What is a good salary for London?
Because housing and living costs are significantly higher in the capital, a “good” salary in London is typically considered to be £50,000 or above for a single professional. To live completely comfortably in zone 1-3, many consider £70,000+ necessary.
Which degree has the highest salary in the UK?
Graduates in Medicine, Dentistry, and Veterinary Science consistently achieve the highest median salaries five years after graduation. Economics and Mathematics graduates also command premium salaries, particularly those entering the financial services sector in London.