Tax Year Guide
UK Tax Year 2026/27
Full breakdown of income tax bands, National Insurance and student loan thresholds — plus a side-by-side comparison with 2025/26.
Why are thresholds still frozen?
The UK government announced a multi-year freeze of income tax thresholds running from 2021/22 through to at least 2027/28. As wages rise with inflation, more income is dragged into higher tax bands each year — a policy sometimes called a "stealth tax." For 2026/27 this means no change to the personal allowance (£12,570), basic rate ceiling (£50,270) or additional rate threshold (£125,140).
England & Wales Income Tax 2026/27
Rates and thresholds are the same as 2025/26.
| Band | Taxable Income | 2025/26 Rate | 2026/27 Rate | Change |
|---|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | 0% | No change |
| Basic Rate | £12,571 – £50,270 | 20% | 20% | No change |
| Higher Rate | £50,271 – £125,140 | 40% | 40% | No change |
| Additional Rate | Over £125,140 | 45% | 45% | No change |
Personal Allowance tapers away by £1 for every £2 earned above £100,000 in both years.
Scotland Income Tax 2026/27
Scotland operates a six-band system. Rates are unchanged; the Starter and Basic thresholds rose by 7.4% for 2026/27. The official Top rate still starts at £125,140.
| Band | 2025/26 range | 2026/27 range | Rate | Change |
|---|---|---|---|---|
| Personal Allowance | £0 – £12,570 | £0 – £12,570 | 0% | No change |
| Starter Rate | £12,571 – £15,397 | £12,571 – £16,537 | 19% | Threshold up |
| Basic Rate | £15,398 – £27,491 | £16,538 – £29,526 | 20% | Threshold up |
| Intermediate Rate | £27,492 – £43,662 | £29,527 – £43,662 | 21% | Threshold up |
| Higher Rate | £43,663 – £75,000 | £43,663 – £75,000 | 42% | No change |
| Advanced Rate | £75,001 – £125,140 | £75,001 – £125,140 | 45% | No change |
| Top Rate | Over £125,140 | Over £125,140 | 48% | No change |
National Insurance 2026/27
Employee (Class 1) NI rates and thresholds are unchanged. NI is set by Westminster and applies across all UK nations.
| Threshold / Rate | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Primary Threshold | £12,570 | £12,570 | No change |
| Upper Earnings Limit | £50,270 | £50,270 | No change |
| Main Employee Rate | 8% | 8% | No change |
| Upper Employee Rate | 2% | 2% | No change |
Student Loan Thresholds 2026/27
Plans 1, 2 and 4 rose for 2026/27 (HMRC employer tables). You repay 9% (undergrad) or 6% (postgrad) of income above your plan's threshold.
| Plan | 2025/26 Threshold | 2026/27 Threshold | Change |
|---|---|---|---|
| Plan 1 | £26,065 | £26,900 | Up |
| Plan 2 | £28,470 | £29,385 | Up |
| Plan 4 (Scotland) | £32,745 | £33,795 | Up |
| Plan 5 | £25,000 | £25,000 | No change |
| Postgraduate | £21,000 | £21,000 | No change |
Year-on-year context
2024/25 → 2025/26: The only notable change was a mid-year NI cut — the main employee rate dropped from 10% to 8% in April 2024, and the 8% rate then carried into 2025/26. Scottish income tax band widths shifted slightly. All England/Wales income tax thresholds were frozen.
2025/26 → 2026/27: England and Wales income tax and employee NI are frozen. Scotland increased the Starter and Basic rate thresholds by 7.4%. Student loan Plans 1, 2 and 4 also rose. This is the fifth consecutive year the personal allowance has been frozen at £12,570.
What to watch for 2027/28: The personal allowance freeze is currently legislated to end in April 2028, when thresholds are expected to rise again with inflation. Any Pre-Budget changes would be announced in the Autumn Statement typically held in October or November 2027.
See your 2026/27 take-home pay
Enter your salary into our free calculator — updated for the current 2026/27 tax year, covering England, Wales and Scotland.
Open Calculator →Frequently Asked Questions
No. Income tax rates and bands in England and Wales are unchanged for 2026/27. The personal allowance remains £12,570, the basic rate band remains £37,700 wide (£12,571–£50,270), and the additional rate threshold stays at £125,140. All thresholds have been frozen by the government until at least April 2028.
Yes. Rates are unchanged (Starter 19% through Top Rate 48%) but the Starter and Basic band limits rose by 7.4% in the January 2026 Scottish Budget. Starter now runs to £16,537 and Basic to £29,526. Higher (£43,663), Advanced (£75,001) and Top (over £125,140) stay frozen.
No. Employee National Insurance rates and thresholds are the same as 2025/26. The Primary Threshold remains £12,570, the Upper Earnings Limit remains £50,270, the main rate stays at 8% and the upper rate at 2%.
Yes for Plans 1, 2 and 4. HMRC employer rates for 2026/27 raise Plan 1 to £26,900, Plan 2 to £29,385 and Plan 4 (Scotland) to £33,795. Plan 5 stays at £25,000 and the Postgraduate threshold stays at £21,000. Repayment rates remain 9% (undergrad) and 6% (postgrad) above each threshold.
The UK government has frozen the personal allowance at £12,570 from 2021/22 through to at least 2027/28. This is a "stealth tax" — inflation pushes wages up while the threshold stays fixed, so more income is pulled into taxation each year, even though the rate itself is unchanged.
Earners between £100,000 and £125,140 face an effective 60% marginal rate because every £2 earned above £100,000 withdraws £1 of the personal allowance, creating an additional 20% tax on top of the 40% higher rate. Salary sacrifice pension contributions are the most effective way to reduce income below £100,000 and avoid this trap.
Use the Salary Crush calculator — it is updated for the current 2026/27 tax year and covers income tax for England, Wales and Scotland, National Insurance, pension contributions (including salary sacrifice), and student loan repayments for all plan types.