2026/27 Tax Guide · Based on HMRC-published rates

UK Tax Rates 2026/27: The Complete Reference

Published: 12 October 2026 Last Reviewed: 12 October 2026 Jurisdiction: United Kingdom

Last verified: 12 October 2026 • Official Statutory Reference 2026/27 • Cite: mytakehomecalc.co.uk/uk-tax-rates-2026-27/

Official UK Tax Rates & Thresholds Reference for the 2026/27 Tax Year

Every statutory UK tax rate for 2026/27 in one definitive reference: the Income Tax Personal Allowance is £12,570, basic rate 20% (£12,571–£50,270), higher rate 40% (£50,271–£125,140), and additional rate 45% (>£125,140). Employee Class 1 National Insurance is 8% (£12,570–£50,270) and 2% above £50,270; Employer NI is 15% above £5,000. Child Benefit is £27.05/week (£1,406.60/yr) for the eldest child and £17.90/week for additional children (£2,337.40/yr for two children), tapered between £60k and £80k under HICBC.

Quick Citation Index

1. Income Tax Rates & Bands (2026/27)

UK Income Tax Bands & Rates (2026/27 Tax Year) Bar showing UK income tax bands for 2026/27: 20% basic rate, 40% higher rate and 45% additional rate. UK Income Tax Bands & Statutory Thresholds (2026/27) England, Wales and Northern Ireland tax bands (Scottish devolved income tax has 6 separate tiers).

0% TAX Personal Allowance £0 – £12,570

20% BASIC RATE £12,571 – £50,270 (£37,700 band) Max basic tax: £7,540.00

40% HIGHER RATE £50,271 – £125,140 (£74,870 band) Includes 60% taper trap £100k–£125k

45% ADD’L Over £125,140 Zero allowance

&warning; THE 60% TAX TRAP (£100,000 – £125,140) • Personal Allowance is withdrawn by £1 for every £2 of income above £100k. • Effective tax rate in this £25,140 slice is 60% (62% including 2% NI). • At exactly £125,140, your Personal Allowance is completely wiped out. → Best defence: Pension salary sacrifice reduces adjusted net income.

• DEVOLVED RATES: SCOTLAND SIX-TIER SYSTEM • Starter Rate: 19% (£12,571 – £15,397) • Basic (20%), Intermediate (21% to £31,092), Higher (42% to £62,430) • Advanced Rate: 45% (£62,431 – £125,140) • Top Rate: 48% (>£125,140) → Higher earners pay up to £3,346 more tax in Scotland than England.

Source: GOV.UK statutory rates 2026/27. Income tax thresholds frozen through April 2028.

Band Name Taxable Income Range Tax Rate (England, Wales, NI) Scottish Devolved Rate
Personal Allowance £0 to £12,570 0% 0%
Starter / Basic Rate £12,571 to £50,270 20% 19% / 20% / 21%
Higher Rate £50,271 to £125,140 40% 42% / 45%
Additional / Top Rate Over £125,140 45% 48%

2. Class 1 National Insurance Contributions (NICs)

UK National Insurance Thresholds & Rates (2026/27 Tax Year) Diagram of 2026/27 National Insurance rates for employees and employers. Class 1 National Insurance: Employee vs Employer Rates (2026/27) Comparing employee deductions against the 15% employer rate with the lower £5,000 threshold.

EMPLOYEE CLASS 1 NIC (DEDUCTED FROM YOUR PAYSLIP)

0% (NIL RATE) £0 – £12,570 (Primary Threshold)

8% MAIN EMPLOYEE RATE £12,571 – £50,270 (Max: £3,016.00/yr)

2% UPPER RATE > £50,270 (Upper Earnings Limit) Credits: Earnings between £6,396 (LEL) and £12,570 build State Pension record without paying NICs.

EMPLOYER CLASS 1 NIC (PAID BY YOUR EMPLOYER • REVENUE ACT 2025)

0% <£5,000

15% EMPLOYER RATE (ALL EARNINGS OVER £5,000 PER YEAR) Secondary threshold lowered from £9,100 to £5,000 • Uncapped rate (no upper limit) Employment Allowance: Eligible small employers can claim up to £10,500 relief to offset employer NICs.

Rates verified against HMRC employer guidance 2026/27. Employee NI rate cut to 8% remains in effect.

Category Threshold / Band Statutory Rate Annual Amount / Cap
Employee Primary Threshold £12,570 to £50,270 8% Max £3,016.00/yr
Employee Upper Earnings Limit Over £50,270 2% Uncapped
Employer Secondary Threshold Over £5,000 15% Uncapped (Lowered threshold)
Employment Allowance Eligible Employers Relief Up to £10,500.00 offset

3. Dividend Tax Rates (2026/27)

Band Dividend Rate Statutory Allowance
Dividend Allowance 0% £500.00 tax-free
Basic Rate Dividends 10.75% (+2pp) Up to £50,270 total income
Higher Rate Dividends 35.75% (+2pp) £50,271 to £125,140
Additional Rate Dividends 39.35% (Unchanged) Over £125,140

4. Child Benefit & HICBC Taper Rates

Child Weekly Rate Annual Total HICBC Clawback Window
Eldest or Only Child £27.05 / week £1,406.60 / year £60,000 to £80,000 (1% per £200)
Additional Children £17.90 / week £930.80 / year
Two Children Combined £2,337.40 / year Fully clawed back at £80,000

5. Student Loan Repayment Thresholds (2026/27)

Plan Annual Threshold Monthly Threshold Deduction Rate
Plan 1 £26,900 £2,241.67 9% above threshold
Plan 2 £29,385 £2,448.75 9% above threshold
Plan 4 (Scotland) £33,795 £2,816.25 9% above threshold
Plan 5 £25,000 £2,083.33 9% above threshold
Postgraduate Loan £21,000 £1,750.00 6% above threshold

6. Stamp Duty Land Tax (SDLT) Residential Bands

Purchase Price Band Standard Main Residence Additional Property (5% Surcharge) First-Time Buyer Relief
£0 to £125,000 0% 5% 0% up to £300,000
£125,001 to £250,000 2% 7% 0% up to £300,000
£250,001 to £925,000 5% 10% 5% (£300k–£500k)
£925,001 to £1,500,000 10% 15% Standard rates
Above £1,500,000 12% 17% Standard rates

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Frequently Asked Questions: UK Tax Rates 2026/27

What is the standard UK Income Tax rate for 2026/27?

The standard basic rate of Income Tax is 20% on taxable earnings between £12,571 and £50,270. Earnings up to £12,570 are tax-free under the Personal Allowance.

What is the 2026/27 employee National Insurance rate?

Class 1 employee National Insurance is 8% on earnings between £12,570 and £50,270, and 2% on all earnings above £50,270.

What is the employer National Insurance rate?

Class 1 employer National Insurance is 15% on all employee earnings above the £5,000 secondary threshold. Eligible small businesses can claim up to £10,500 Employment Allowance relief.

What is the Plan 1 student loan threshold for 2026/27?

The statutory Plan 1 repayment threshold for 2026/27 is £26,900 per year (£2,241.67 per month). Repayments are 9% of earnings above this threshold.

How much is Child Benefit for two children in 2026/27?

For two children, Child Benefit is £2,337.40 per year (£44.95 per week: £27.05 for the eldest child plus £17.90 for the second child).

What are the High Income Child Benefit Charge thresholds?

The HICBC taper starts at £60,000 adjusted net income and claws back 1% of Child Benefit for every £200 earned, reaching a complete 100% clawback at £80,000.

What is the Capital Gains Tax allowance for 2026/27?

The annual tax-free Capital Gains Tax exemption for individuals is £3,000. Residential property gains are taxed at 18% (basic) and 24% (higher).

What is the pension annual allowance for 2026/27?

The standard pension Annual Allowance is £60,000 per year, tapering down to a minimum of £10,000 for high earners with adjusted income exceeding £260,000.

What is the ISA allowance for 2026/27?

The overall ISA allowance is £20,000 per tax year across cash, stocks & shares, and innovative finance accounts.

How long are UK tax thresholds frozen?

Under current statutory legislation, the £12,570 Personal Allowance and £50,270 higher rate thresholds are legislatively frozen until 5 April 2028.

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Statutory Sources & Legislative Citations

All rates and rules discussed in this guide are cross-referenced directly with official statutory guidance published by HM Revenue & Customs and GOV.UK: