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
Methodology Note: The apportionment shown is illustrative. It is calculated by dividing your total personal tax (Income Tax + Employee NICs) by the total UK public sector receipts (£1,058 billion) and multiplying by the departmental spend. All figures are based on the latest HMT Public Expenditure Statistical Analyses (PESA) 2024 (2023-24 outturn).
For Journalists & Researchers
The figures in this interactive tool are drawn directly from HMT PESA 2024 (Table 4.2: Total Expenditure on Services by function) and ONS Public Sector Finances. For media enquiries or to cite these statistics, you may quote: "According to mytakehomecalc.co.uk's analysis of HMT PESA 2024 data, a UK worker earning £40,000 contributes approximately £2,206 towards Health and £3,602 towards Social Protection annually."
## Frequently Asked Questions
Where does the UK tax money go?
In the UK, tax revenue is primarily spent on public services and social welfare. According to the latest figures, the largest portions go towards social protection (including the State Pension and welfare), health services like the NHS, and education, with a significant amount also paying interest on national debt.
What is the UK government’s biggest expense?
The UK government’s biggest single expense is social protection. This category costs hundreds of billions annually and covers the State Pension, Universal Credit, disability benefits, and other welfare payments, accounting for roughly a third of all public spending.
Where does the UK get most of its tax revenue?
The UK gets the majority of its tax revenue from three main sources: Income Tax, National Insurance Contributions (NICs), and Value Added Tax (VAT). Together, these typically account for over 60% of all government receipts.
What is the breakdown of UK income tax revenue?
Income Tax revenue is not hypothecated (ring-fenced) for specific departments. Instead, it goes into the Consolidated Fund along with most other taxes, which the government then distributes across all public services such as health, education, and defence according to the annual Budget.
How much does the top 1% pay in taxes in the UK?
The top 1% of earners contribute a disproportionately large share of Income Tax. Official HMRC statistics show that the top 1% pay nearly 30% of all Income Tax collected in the UK, reflecting the progressive nature of the tax system.
Do the richest people in the UK pay the most taxes?
Yes, the highest earners pay the most in absolute terms and as a proportion of total Income Tax revenue. The progressive tax system means higher earners not only pay tax on a larger income but also pay higher marginal rates of 40% and 45%.
Who pays 45% tax in the UK?
The 45% additional rate of Income Tax is paid by individuals earning over £125,140 a year. This threshold was lowered from £150,000 in April 2023, bringing more high earners into the top tax bracket.
Does anyone pay 60% tax in the UK?
Yes, due to the withdrawal of the tax-free Personal Allowance. For every £2 earned between £100,000 and £125,140, £1 of the allowance is lost. This creates an effective marginal Income Tax rate of 60% in that specific income band.
Is UK tax the highest it has ever been?
The UK’s tax burden—measured as tax revenue as a percentage of GDP—is currently at its highest level since the years immediately following the Second World War. This is driven by frozen tax thresholds (fiscal drag) and increased public spending demands.
How much debt is the UK in?
The UK’s public sector net debt stands at over £2.7 trillion, which is roughly equivalent to 100% of the country’s Gross Domestic Product (GDP). Servicing this debt costs the government over £100 billion annually in interest payments.