Rates and thresholds, 2026/27
UK tax rates 2026/27
The income tax, National Insurance, student loan and Child Benefit figures used for employees in the 2026/27 tax year, 6 April 2026 to 5 April 2027.
Income tax: England, Wales and Northern Ireland
| Band | Rate | Salary (standard allowance) | Taxable income |
|---|---|---|---|
| Basic rate | 20% | £12,571 to £50,270 | £0 to £37,700 |
| Higher rate | 40% | £50,271 to £125,140 | £37,701 to £125,140 |
| Additional rate | 45% | over £125,140 | over £125,140 |
The Personal Allowance is £12,570. It falls by £1 for every £2 of adjusted net income above £100,000, so it is nil at £125,140. Wales sets the same rates as England for 2026/27. Sources: GOV.UK: Income Tax rates and Personal Allowances; GOV.UK: Income Tax rates and allowances, current and past.
Income tax: Scotland
| Band | Rate | Salary (standard allowance) | Taxable income |
|---|---|---|---|
| Starter rate | 19% | £12,571 to £16,537 | £0 to £3,967 |
| Basic rate | 20% | £16,538 to £29,526 | £3,968 to £16,956 |
| Intermediate rate | 21% | £29,527 to £43,662 | £16,957 to £31,092 |
| Higher rate | 42% | £43,663 to £75,000 | £31,093 to £62,430 |
| Advanced rate | 45% | £75,001 to £125,140 | £62,431 to £125,140 |
| Top rate | 48% | over £125,140 | over £125,140 |
Source: Scottish Parliament: Scottish Rate Resolution 2026-27 (motion S6M-20844). More on Scottish income tax.
National Insurance (employees, category A)
| Pay | Rate |
|---|---|
| Up to £12,570 a year (£1,048 a month) | 0% |
| £12,570 to £50,270 a year (£1,048 to £4,189 a month) | 8% |
| Over £50,270 a year | 2% |
Employers pay 15% above £5,000 a year. Employment Allowance is £10,500 a year for eligible employers. Source: GOV.UK: Rates and thresholds for employers 2026 to 2027.
Student loan thresholds
| Plan | Yearly threshold | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Source: GOV.UK: Special rules for student loans.
Child Benefit and the charge
Child Benefit is £27.05 a week for the eldest child and £17.90 for each other child. The High Income Child Benefit Charge starts at £60,000 of adjusted net income and takes back all of the benefit at £80,000. Sources: GOV.UK: Child Benefit rates; GOV.UK: High Income Child Benefit Charge.
Other allowances
| Allowance | 2026/27 |
|---|---|
| Marriage Allowance (transfer) | £1,260 (saves up to £252) |
| Blind Person's Allowance | £3,250 |
| Dividend Allowance | £500 |
| Dividend tax rates | 10.75%, 35.75%, 39.35% |
| Auto-enrolment qualifying earnings | £6,240 to £50,270 |
Sources: GOV.UK: Income Tax rates and allowances, current and past; DWP: Automatic enrolment earnings trigger and qualifying earnings band 2026/27.
What is already announced for later years
- In England, Wales and Northern Ireland, the Personal Allowance, the income tax bands and the main National Insurance thresholds (£12,570 and £50,270) are frozen until April 2031. Scottish bands are set each year by the Scottish Parliament.
- The Plan 2 student loan threshold is due to stay at £29,385 from 2027/28 to 2029/30 for English borrowers; the Welsh Government decides for Welsh borrowers.
- Savings income rates are due to rise to 22%, 42% and 47% from April 2027, and so are property income rates in England and Northern Ireland (Scotland and Wales may set their own).
- From April 2029, pension salary sacrifice above £2,000 a year is due to pay National Insurance.
Sources: GOV.UK: Budget 2025, overview of tax legislation and rates; GOV.UK: Salary sacrifice reform for pension contributions from 6 April 2029. The Budget on 28 October 2026 may change these. Budget 2026.
Tax rates and thresholds are taken from HMRC, GOV.UK and Scottish Government publications. Contains public sector information licensed under the Open Government Licence v3.0.