United Kingdom
UK Income Tax Rates and Bands 2026/27: Worked Examples
The 2026/27 income tax bands for England, Wales and Northern Ireland, how the Personal Allowance is applied, and worked examples from £30,000 to £150,000.
The bands at a glance
For England, Wales and Northern Ireland, income tax is charged in three bands, and the rates apply to your taxable income, which is your income after the Personal Allowance. The bands for 2026/27 are unchanged from the previous year:
| Taxable income | Rate |
|---|---|
| £0 – £37,700 | 20% |
| £37,700 – £125,140 | 40% |
| Over £125,140 | 45% |
The table lists the bands as they apply to taxable income. The first £37,700 of taxable income is the basic rate band, so a person with the full Personal Allowance starts paying the higher rate once their total income passes £50,270 (£12,570 plus £37,700).
The Personal Allowance comes first
Most people can earn £12,570 in a tax year before paying any income tax. That is the Personal Allowance, and it is applied automatically to the top of your income before the bands above. Someone earning £30,000 therefore has taxable income of £17,430, all of it inside the 20% basic rate band, which gives tax of £3,486.
Worked examples
Here is the income tax at four salaries, assuming the standard Personal Allowance and no other reliefs:
| Income | Tax | Marginal rate | Effective rate |
|---|---|---|---|
| £30,000 | £3,486 | 20% | 11.62% |
| £50,000 | £7,486 | 20% | 14.97% |
| £100,000 | £27,432 | 40% | 27.43% |
| £150,000 | £53,703 | 45% | 35.8% |
Only the deductions applied automatically in United Kingdom; no other deductions or reliefs claimed.
At £50,000 taxable income is £37,430 and tax is £7,486, an effective rate of about 15%. At £100,000 taxable income is £87,430 and tax is £27,432. At £150,000 the allowance has been fully withdrawn, so all £150,000 is taxable and the tax is £53,703, an effective rate of about 36%.
The £100,000 to £125,140 zone
Above £100,000 of adjusted net income the Personal Allowance is reduced by £1 for every £2 of income, and it is gone entirely at £125,140. The effect is that each extra pound in that range is taxed at an effective 60%. The calculator reflects this automatically.
The figures show it clearly. At £100,000 the tax is £27,432; at £110,000 it is £33,432. The extra £10,000 of salary costs £6,000 in tax. At £125,140 the tax is £42,516, and at £130,000 it is £44,703, so above that point the marginal rate settles at 45%.
A pension contribution counts against the adjusted net income used for the allowance, so it can help twice in this zone. A person on £110,000 who pays £10,000 into a pension brings their taxable income back to £100,000 and their tax from £33,432 to £27,432.
What these figures do not include
The tax shown here is income tax only, so before you rely on the numbers, keep the following in mind:
- National Insurance is charged separately on employee earnings and is not included in these figures. Check gov.uk for the current rates.
- Scotland sets its own income tax bands and rates, so the table does not apply to Scottish taxpayers.
- Student loan repayments, pension auto-enrolment deductions and the High Income Child Benefit Charge are not included.
- Savings and dividend income are taxed under separate rules and allowances.
Where you can lower your bill
The main levers for an employee are pension contributions, which reduce taxable income and can restore some of the Personal Allowance, and Gift Aid donations, which extend the basic rate band. The Marriage Allowance may also help couples where one partner earns less than the Personal Allowance. Each has eligibility conditions, so check the gov.uk guidance before you rely on it.
Try it with your own salary
Enter your salary in the calculator, add any pension contributions or Gift Aid donations, and you will see your taxable income, tax by band, and marginal and effective rates. The Advisory step shows how much more you could deduct to reach a lower band.
Sources
Figures were last checked against these sources on September 19, 2026. See our methodology for how the calculator uses them.
Estimate only. This is an approximation, not a tax return or professional advice, and may not reflect every credit, exemption, or recent law change. Verify with your tax authority or a qualified professional before relying on it. Read the full disclaimer or see how it's calculated.