UK Tax Year 2026/27: Complete Guide
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. This guide covers all the rates and thresholds you need to know as an employee, self-employed worker, or contractor in the UK.
Income Tax Rates: England, Wales & Northern Ireland
The income tax bands for England, Wales, and Northern Ireland remain frozen at the same levels as previous years, as part of the government's threshold freeze extending to April 2028 (and subsequently to April 2031).
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Personal Allowance taper
If your adjusted net income exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 above that threshold. The allowance reaches zero at £125,140. This creates an effective 60% marginal tax rate between £100,000 and £125,140.
Use our salary calculator to see how the taper affects your take-home pay.
Scottish Income Tax Rates 2026/27
Scotland sets its own income tax rates. For 2026/27, the bands are:
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £16,537 | 19% |
| Basic Rate | £16,538 – £29,526 | 20% |
| Intermediate Rate | £29,527 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
The Personal Allowance is set by the UK government and applies equally in Scotland. Only the tax rates and non-savings, non-dividend income bands differ.
National Insurance Contributions 2026/27
Employee (Class 1) National Insurance contributions for 2026/27:
| Earnings | Rate |
|---|---|
| Below £12,570 (Primary Threshold) | 0% |
| £12,570 – £50,270 (Upper Earnings Limit) | 8% |
| Above £50,270 | 2% |
The Lower Earnings Limit (LEL) is £6,708. Earnings between the LEL and Primary Threshold don't attract NI but do qualify you for state pension credits.
Calculate your NI contributions
Student Loan Repayment Thresholds 2026/27
Student loan repayments are deducted through PAYE once your earnings exceed your plan's threshold:
| Plan | Annual Threshold | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Repayments are calculated on earnings above the threshold. If you have both an undergraduate and postgraduate loan, both are deducted simultaneously.
Calculate your student loan repayment
Pension Auto-Enrolment 2026/27
Under auto-enrolment, the minimum pension contributions on qualifying earnings (between £6,240 and £50,270) are:
| Contributor | Minimum Rate |
|---|---|
| Employee | 5% |
| Employer | 3% |
| Total | 8% |
Many employers calculate pension on full salary rather than just qualifying earnings. The auto-enrolment earnings trigger remains at £10,000.
See how pension affects your take-home pay
Key Tax Codes for 2026/27
- 1257L — Standard tax code for most employees (£12,570 personal allowance)
- S1257L — Scottish equivalent of 1257L
- C1257L — Welsh equivalent of 1257L
- BR — All income taxed at basic rate (20%), typically used for second jobs
- D0 — All income taxed at higher rate (40%)
- 0T — No personal allowance (used when allowance is fully used elsewhere)
- K codes — You owe more tax than your allowance covers (e.g., company car benefit)
- NT — No tax deducted
Important Dates
- 6 April 2026 — 2026/27 tax year starts
- 5 April 2027 — 2026/27 tax year ends
- 31 July 2027 — Second payment on account deadline (2025/26)
- 5 October 2027 — Deadline to register for self-assessment (if new)
- 31 October 2027 — Paper self-assessment deadline
- 31 January 2028 — Online self-assessment deadline for 2026/27
Sources
All figures in this guide are from official HMRC and gov.uk publications: