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. All rates and thresholds are unchanged from 2025/26.
| Band | Income Range | 2025/26 | 2026/27 | Change |
|---|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | 0% | No change |
| Starter Rate | £12,571 – £15,397 | 19% | 19% | No change |
| Basic Rate | £15,398 – £24,664 | 20% | 20% | No change |
| Intermediate Rate | £24,665 – £28,741 | 21% | 21% | No change |
| Higher Rate | £28,742 – £43,908 | 42% | 42% | No change |
| Advanced Rate | £43,909 – £62,710 | 45% | 45% | No change |
| Top Rate | Over £62,710 | 48% | 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
Repayment thresholds are unchanged. 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 | £26,065 | No change |
| Plan 2 | £28,470 | £28,470 | No change |
| Plan 4 (Scotland) | £32,745 | £32,745 | No change |
| 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: No rate or threshold changes. This is the fifth consecutive year the personal allowance has been frozen at £12,570. The effective tax burden for most earners continues to rise in real terms as wages outpace frozen thresholds.
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.
No. The Scottish Government confirmed in its December 2024 budget that all Scottish income tax rates and band boundaries are unchanged for 2026/27. The six-band structure (Starter 19% through Top Rate 48%) continues with the same thresholds as 2025/26.
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%.
No change was confirmed for the main thresholds between 2025/26 and 2026/27. Plan 1 stays at £26,065, Plan 2 at £28,470, Plan 4 (Scotland) at £32,745, Plan 5 at £25,000, and the Postgraduate threshold 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.