Guide · Take-home pay

UK income tax bands and rates explained

Every income tax band and rate for England, Wales, Northern Ireland and Scotland in 2026/27, with worked examples and the mistakes people make. Start by take your gross income for the year and subtract your personal allowance and any net-pay or salary sacrifice pension.

By Uthman ChoudhuryPublished 20 September 2026Updated 20 September 2026

Skip the reading: use the Take-Home Pay Calculator for your own numbers.

How do you work out which tax band you are in?

Find your taxable income. Take your gross income for the year and subtract your personal allowance and any net-pay or salary sacrifice pension.
Identify your region. Scottish taxpayers use the six Scottish bands. Everyone else uses the three UK bands. Your tax code shows an S prefix if Scottish rates apply.
Fill the bands in order. Tax the first slice at the lowest rate until the band is full, then move to the next band with the remainder.
Add the band totals. The sum of each slice's tax is your income tax for the year. Divide by 12 for the monthly figure.

How do income tax bands work?

UK income tax is marginal: your income is sliced into bands and each slice is taxed at that band’s rate. Moving into a higher band only changes the tax on the income above the threshold, never on the income below it. The bands below apply to non-savings income such as salary, pension and rental income in 2026/27.

England, Wales and Northern Ireland income tax bands 2026/27 (with standard personal allowance)
Band	Income range	Rate
Personal allowance	Up to £12,570	0%
Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £137,710	40%
Additional rate	£137,711 and above	45%

Scottish income tax bands 2026/27 (with standard personal allowance)
Band	Income range	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	£125,141 and above	48%

Above £100,000 the personal allowance is withdrawn at £1 for every £2 of income, disappearing entirely at £125,140. That creates an effective 60% band (62% with NI) which is covered in the 60% tax trap guide.

Worked example: £60,000 in England versus Scotland

In England, taxable income is £47,430. The first £37,700 is taxed at 20% (£7,540) and the remaining £9,730 at 40% (£3,892), a total of £11,432. In Scotland the same taxable income passes through the starter, basic, intermediate and higher bands, giving £13,182. The Scottish taxpayer pays £1,750 more a year.

What do people get wrong about tax bands?

“I do not want a rise because it puts me in the 40% band.” Only the slice above the threshold is taxed at 40%; you always keep more with a higher salary.
Reading the band figures as gross income. The £37,700 basic rate band is measured from the end of the personal allowance, which is why the higher rate starts at £50,271.
Assuming savings and dividends use the same rates. They have their own allowances and rates and sit on top of your other income.

Frequently asked questions

What is the higher rate threshold?

In England, Wales and Northern Ireland the 40% higher rate starts at £50,271 of total income, which is the £12,570 personal allowance plus the £37,700 basic rate band. In Scotland the 42% higher rate starts at £43,663.

Are the income tax thresholds frozen?

Yes. The personal allowance and the UK bands have been frozen since April 2021 and the Autumn Budget 2025 extended the freeze to April 2031. As pay rises, more people are pulled into higher bands, an effect known as fiscal drag.

Do I pay Scottish tax if I work in Scotland but live in England?

No. Scottish rates apply to people whose main home is in Scotland, regardless of where their employer is based. HMRC decides based on your address.