UK Tax Bands 2026/27: Income Tax, NI and Student Loans
Every UK income tax band for 2026/27, including Scotland, plus National Insurance, the £100,000 allowance taper and student loan thresholds, with examples.
By Awais, Founder and editor-in-chiefPublished
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. Most thresholds are frozen, so the bands look the same as last year, but Scotland’s bands and the student loan thresholds have moved. This guide sets out every figure an employee needs, explains who pays what, and works through three salaries. For your own numbers, use the UK salary calculator.
Income tax: England, Wales and Northern Ireland
| 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% |
Wales sets its own rates, but for 2026/27 they match England and Northern Ireland.
Income tax: Scotland
If your main home is in Scotland you pay Scottish income tax on wages and pensions. Savings and dividend income still use the UK bands.
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 to £16,537 | 19% |
| Basic rate | £16,538 to £29,526 | 20% |
| Intermediate rate | £29,527 to £43,662 | 21% |
| Higher rate | £43,663 to £75,000 | 42% |
| Advanced rate | £75,001 to £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Sources: GOV.UK Income Tax rates, GOV.UK Scottish Income Tax and GOV.UK rates and thresholds for employers 2026 to 2027, checked on 21 October 2026.
The personal allowance and the £100,000 taper
The personal allowance is £12,570. Once your adjusted net income goes over £100,000, it falls by £1 for every £2 above that level, and it is gone completely at £125,140.
Losing allowance while paying 40% tax creates an effective 60% rate on income between £100,000 and £125,140 (67.5% for Scottish taxpayers, whose rate in that range is 45%). Pension contributions and Gift Aid donations reduce adjusted net income, so they are the usual way to get the allowance back.
National Insurance for employees
Employees pay Class 1 National Insurance on earnings, not on savings or rental income.
| Earnings per year | Per month | Per week | Employee rate |
|---|---|---|---|
| Up to £12,570 | Up to £1,048 | Up to £242 | 0% |
| £12,570 to £50,270 | £1,048 to £4,189 | £242 to £967 | 8% |
| Over £50,270 | Over £4,189 | Over £967 | 2% |
Payroll works out NI on each pay period separately, so a one-off bonus can push one month’s NI up even if your yearly pay is modest. If you are over State Pension age, you pay no employee NI at all.
Student loan and postgraduate loan thresholds
| Plan | Who usually has it | Repay 9% of income over |
|---|---|---|
| Plan 1 | English and Welsh students who started before September 2012; Northern Ireland | £26,900 |
| Plan 2 | English students who started from September 2012 to July 2023, and Welsh students from September 2012 | £29,385 |
| Plan 4 | Scottish students | £33,795 |
| Plan 5 | English students who started from August 2023 | £25,000 |
| Postgraduate Loan | Master’s and doctoral loans | 6% over £21,000 |
If you have more than one undergraduate plan, you repay 9% only once, on income over the lowest of your thresholds. A Postgraduate Loan is repaid on top.
Source: GOV.UK repaying your student loan, checked on 21 October 2026.
Worked example 1: £28,000 in Manchester
- Taxable income: £28,000 − £12,570 = £15,430. Income tax at 20%: £3,086.
- National Insurance: 8% × (£28,000 − £12,570) = £1,234.40.
- With a Plan 5 student loan: 9% × (£28,000 − £25,000) = £270.
- Take-home: £28,000 − £3,086 − £1,234.40 − £270 = £23,409.60 a year, about £1,950.80 a month.
Worked example 2: £60,000 in Edinburgh
Taxable income is £60,000 − £12,570 = £47,430.
- Starter 19% on £3,967 = £753.73
- Basic 20% on £12,989 = £2,597.80
- Intermediate 21% on £14,136 = £2,968.56
- Higher 42% on £16,338 = £6,861.96
- Income tax total: £13,182.05
National Insurance: 8% × £37,700 + 2% × £9,730 = £3,210.60. Take-home: £43,607.35. The same salary in England pays £11,432 income tax, so the Scottish taxpayer pays £1,750.05 more.
Worked example 3: £110,000 and a pension
- Without a pension: the allowance falls to £12,570 − (£110,000 − £100,000) ÷ 2 = £7,570. Taxable income is £102,430: 20% on £37,700 plus 40% on £64,730 = £33,432 income tax.
- With a 10% salary sacrifice (£11,000): pay falls to £99,000, so the full £12,570 allowance returns. Taxable income is £86,430: £7,540 + 40% × £48,730 = £27,032.
The £11,000 pension contribution cuts income tax by £6,400 and National Insurance by £220, so it costs only £4,380 of take-home pay.
Who the 2026/27 figures affect most
- Anyone getting a pay rise: frozen thresholds mean more of each raise is taxed at higher rates over time, often called fiscal drag.
- Scottish taxpayers above about £33,500: the 21% intermediate band and 42% higher rate mean slightly more tax than elsewhere in the UK, while those below that point pay slightly less.
- Graduates on Plan 5: 2026/27 is the first year Plan 5 repayments are due, at 9% over £25,000.
- Earners near £100,000: the 60% zone makes pension contributions especially valuable.
FAQ
What is the tax-free personal allowance for 2026/27?
£12,570, the same as in recent years. It shrinks by £1 for every £2 of adjusted net income over £100,000 and disappears at £125,140.
Are the income tax bands the same in Wales?
Yes for 2026/27. Wales can set its own rates, but they currently match England and Northern Ireland: 20%, 40% and 45%.
How much National Insurance will I pay on £40,000?
8% of the earnings between £12,570 and £40,000, which is £2,194.40 a year, or about £182.87 a month.
Do I pay student loan on my whole salary?
No. You only repay 9% of the part of your income above your plan’s threshold. If your income is below the threshold, nothing is taken.
Check your take-home pay, pension and student loan deductions together with the UK salary calculator. Thinking about buying a home? Use the mortgage calculator to see what your take-home pay can support.