Income Tax Calculator 2026-27
Calculate your UK income tax for the 2026/27 tax year. See your Personal Allowance, Basic Rate, Higher Rate and Additional Rate tax breakdown.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Quick Answer
UK income tax in 2026/27 has a £12,570 Personal Allowance, then 20% Basic Rate up to £50,270, 40% Higher Rate up to £125,140, and 45% Additional Rate above. The allowance tapers off between £100,000 and £125,140 at an effective 60% marginal rate.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
UK Income Tax bands 2026/27 (England, Wales, NI)
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
How It Works
UK income tax is calculated on a progressive banding system. You are entitled to a tax-free Personal Allowance of £12,570 for the 2026/27 tax year. Income above that is taxed at increasing rates: 20% Basic Rate (£12,571–£50,270), 40% Higher Rate (£50,271–£125,140) and 45% Additional Rate (above £125,140).
If you earn more than £100,000, your Personal Allowance is reduced by £1 for every £2 above this threshold. This creates an effective marginal rate of 60% on income between £100,000 and £125,140. The allowance is completely eliminated at £125,140.
This calculator applies the exact banding structure used by HMRC. Enter your gross annual salary and it will show your tax breakdown by band, your effective tax rate and your take-home position. Scottish taxpayers should use the Scottish Income Tax Calculator instead, as Scotland has its own rates and bands.
Effective vs marginal tax rates. Effective: total tax ÷ total income. Marginal: rate on next £1 earned. £30,000 employee: effective 16.3% (£4,881 tax+NI). £50,000: 21.0%. £75,000: 27.9%. £100,000: 31.4%. £150,000: 38.8%. Marginal: £50,001 = 42% (40% IT + 2% NI). £100,001-£125,140 = 60% from PA taper. £125,141+ = 47%. Use marginal rate for pension decisions; effective for budgets.
The £100k Personal Allowance taper. Earn above £100,000: lose £1 of PA per £2 income. Total PA lost at £125,140. Marginal rate £100k-£125,140 = 60% (or 62% with NI). Single biggest UK tax cliff. Avoid: pension contribution to bring income below £100k (£10k contribution restores £12,570 PA — net cost £3,800-£4,000 for £6,200+ saving); Charity Gift Aid; salary sacrifice (childcare, EV, cycle-to-work).
Tax codes — what they mean. 1257L: standard 2026/27 with £12,570 Personal Allowance. K codes (e.g. K475): negative allowance from taxable benefits. BR: basic rate on all income (often second jobs). 0T: emergency code. NT: no tax. M/N: Marriage Allowance recipient/transferor. S prefix: Scottish taxpayer. C prefix: Welsh taxpayer. Wrong tax code? HMRC 0300 200 3300 — fix takes 1-2 weeks.
Marriage Allowance — £252/year saving. Lower-earning spouse (under £12,570 income) transfers £1,260 of unused PA to higher-earning basic-rate spouse. Apply at gov.uk/marriage-allowance — backdate up to 4 years (4 × £252 = £1,008 refund possible). Lost when either partner crosses higher-rate threshold (£50,270 England; £43,663 Scotland).
How to legally reduce UK income tax. Pension contributions (relief at marginal rate, saves 20-60%). Max £60,000/year Annual Allowance + 3-year carry-forward. Salary sacrifice: pension, cycle-to-work, EV (saves IT + NI = 32-47% combined). ISA £20,000/year. Junior ISA £9,000/year per child. Lifetime ISA (under 40) £4,000/year + 25% bonus. Charity Gift Aid: charity claims 25%, higher-rate adds 25%. EIS/SEIS for high-risk investing.
Example: £45,000 annual salary
- Personal Allowance: £12,570 at 0% = £0 tax
- Basic Rate: £32,430 (£12,571 to £45,000) at 20% = £6,486
- Total income tax: £6,486
- Effective tax rate: 14.4%
Frequently Asked Questions
- What is the Personal Allowance for 2026/27?
- The Personal Allowance for 2026/27 is £12,570 — the amount of income you can earn each tax year before any income tax is due. It applies automatically to most UK residents. The allowance is gradually withdrawn for higher earners: it reduces by £1 for every £2 of income above £100,000, reaching zero at £125,140. This taper creates an effective marginal tax rate of 60% on income between £100,000 and £125,140, because you lose £1 of allowance (worth 40p in tax) for every additional £2 earned, on top of the 40% Higher Rate charge. People with certain tax codes — for example those with unpaid tax from a previous year — may have a reduced effective allowance. Source: HMRC (gov.uk/income-tax-rates).
- What are the UK income tax bands for 2026/27?
- For England, Wales and Northern Ireland in 2026/27, income tax is charged in three main bands above the £12,570 Personal Allowance. The Basic Rate of 20% applies to taxable income from £12,571 to £50,270 — meaning a salary of £35,000 attracts 20% on approximately £22,430, equalling £4,486 in income tax. The Higher Rate of 40% applies from £50,271 to £125,140. The Additional Rate of 45% applies to income above £125,140. These bands cover employment income, self-employment profits, rental income and most other sources. Dividend income and capital gains are taxed at different rates. Scottish taxpayers pay different rates under the Scottish Rate of Income Tax, which has six bands including Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%) and Top (48%). Source: HMRC.
- How does the Personal Allowance taper work?
- If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of income above that threshold. This continues until the allowance reaches zero at £125,140. The practical result is that income between £100,000 and £125,140 faces an effective marginal tax rate of 60%: you pay 40% Higher Rate income tax on the income itself, and the loss of each £1 of Personal Allowance means an additional £1 that was previously untaxed now becomes taxable at 40%, adding a further 20p in tax per £2 earned. Making additional pension contributions can reduce adjusted net income below £100,000 and restore part or all of the Personal Allowance, sometimes making them extremely tax-efficient. Source: HMRC.
- Does this calculator work for Scottish taxpayers?
- This calculator uses the standard UK income tax rates for England, Wales and Northern Ireland and is not suitable for Scottish taxpayers. Scotland has its own six-band income tax system set by the Scottish Parliament, with rates and thresholds that differ significantly from the rest of the UK. For 2026/27, Scottish rates are: Starter Rate 19% (£12,571–£15,397), Basic Rate 20% (£15,398–£27,491), Intermediate Rate 21% (£27,492–£43,662), Higher Rate 42% (£43,663–£75,000), Advanced Rate 45% (£75,001–£125,140), and Top Rate 48% (above £125,140). Scottish taxpayers should use the dedicated Scottish Income Tax Calculator on this site instead, which correctly applies these bands and thresholds. Source: Scottish Government / Revenue Scotland.